SBA PRESENTATION - FaB Wisconsin

i n c o n j u n c t i o n w i t h

SBA PRESENTATIONINGLES Y ESPANOL/ ENGLISH & SPANISH

Wednesday 4/8/20 10:00AM – 11:00AM

Nancy HernandezPresident

AGENDA• Introductions/ Introducciones• Economic Injury Disaster Loans (EIDL)• Payment Protection Program (PPP)• Questions/ Preguntas

Tammie ClendenningLead Economic Development SpecialistEspecialista de Desarrollo Económico

Lily AlvaradoSenior Bilingual Outreach SpecialistEspecialista de Pequeños [email protected]

mailto:[email protected]

SBA Makes Support Available Due to the Coronavirus (COVID-19)

Administrator Jovita Carranza

Today We Will Discuss:• Economic Injury Disaster Loan• Paycheck Protection Plan

Economic Injury Disaster Loan

About the Economic Injury Disaster Loan• Small business owners in Wisconsin are eligible to apply • The Economic Injury Disaster Loan is a working capital loans at a low-interest federal loan• It may be used to pay fixed debts, payroll, accounts payable and other bills • Applicants apply directly to SBA’s Disaster Assistance Program at DisasterLoan.sba.gov • There is no cost to apply

Loan Approval Criteria• Applicants must have a credit history acceptable to SBA• SBA must determine that the applicant business has the ability to repay the SBA loan• The applicant business must be physically located in a declared county and suffered working capital losses

due to the declared disaster, not due to a downturn in the economy or other reasons

Loan Information• Eligible entities may qualify for loans up to $2 million• The interest rates for this disaster are 3.75% for small businesses and 2.75% for nonprofit organizations

with terms up to 30 years determined on a case-by-case basis• Eligibility is based on the size (must be a small business) and type of business and its financial resources


Economic Injury Disaster Loan Advance

• Advance will be for up to $10,000

• Applying is part of the economic injury disaster loan application

• If approved, these funds can be used for payroll and other operating expenses and will be forgiven


Submit Your Application As Soon As Possible• Recheck the filing requirements to ensure that all the needed information

is submitted• The biggest reason for delays in processing is due to missing information• Make sure to complete all filing requirements before submitting the

application and forms• If more funds are needed, applicants can submit supporting documents

and a request for an increase• If less funds are needed, applicants can request a reduction in the loan

amount• If the loan request is denied, the applicant will be given up to six months in

which to provide new information and submit a written request forreconsideration

Paycheck Protection Plan

About the Paycheck Protection Plan• The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to

keep their workers on the payroll• SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for

payroll, rent, mortgage interest, or utilities• Applicants apply through any existing SBA 7(a) lender or through any federally insured depository institution,

federally insured credit union, and Farm Credit System institution that is participating• Lenders started processing loan applications on April 3, 2020• The Paycheck Protection Program will be available through June 30, 2020

Loan Information• At least 75% of the forgiven amount must have been used for payroll• Loan payments will also be deferred for six months• No collateral or personal guarantees are required• Neither the government nor lenders will charge small businesses any fees• Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary

levels Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease• This loan has a maturity of 2 years and an interest rate of 1%


Submit Your Application As Soon As Possible

• April 3 -Application open for small businesses and Sole Proprietors

• April 10 – Application open for self-employed and independent contractors

• Apply through local lender (banks)• PPP Lender find

https://www.sba.gov/paycheckprotection/find• See www.sba.gov/disaster for more information

https://www.sba.gov/paycheckprotection/find

http://www.sba.gov/disaster

Additional Debt Relief/ Assistance

Do You Have an Existing SBA Loan?

• The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months

• The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020

• For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.

• 12 Month deferral on new EIDL loan

SBA Partner Disaster Loan Help

Questions?

SBA PRESENTATION - FaB Wisconsin

Documents

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