COVID 19, The CARE Act, and how we as small business owners find resources

As a business owner, I am looking down the barrel of an unprecedented time in our nation’s history and economy.   I feel fortunate to be considered an essential service, but that does not leave me without the fear of how to do I keep my team employed and our business viable for the upcoming shift in our nation’s economy.

If you are like me you may have a lot of questions on what the CARES Act is and what it can do to help me through this.  Thankfully I have been surrounded by a few people that are much smarter than I am who have tried there very best to keep me informed.

As of today April 2nd this is what I know about how it will affect my business and my clients who are business owners.  I hope that you will use this information as one and pass it on to others that it may benefit from the information.   Keep in mind I am just a business owner so always confirm with the SBA or another qualified professional before taking this information to heart.

Before jumping into the CARES Act just remember it applies to Businesses, Sole Proprietors, Independent Contractors, and non-profits

The best quick reference sheet that I have found to date was given to me by my friend and mentor Kathy Ricci:  You can access it here: Emergency Loan Program Comparison

The first and fastest source to access funds is going to be through the SBA Economic Injury Disaster Program (EIDL).  Here is what it can do:

  • Small businesses applying for an SBA Economic Injury Disaster Loan (EIDL) will be eligible for a $10,000 Emergency Grant to be issued within 3 days of the application being received.
  • Applicants must certify under threat of perjury that they believe they are eligible for the Emergency Grant.
  • The Emergency Grant award of up to $10,000 may be subtracted from the amount forgiven when an EIDL loan is refinanced into a PPP loan.

Access the new EIDL website here: https://covid19relief.sba.gov/#/

The next step is for the Payroll Protection Program: 

Direct link to the program:  www.sba.gov

Instead of typing it all out, You can access the fact sheet Here: Download Fact Sheet    The owner’s guide can be accessed Here: SBA Owners guide

The NFIB has been good enough to create a summary as well that may help. Here is a link to that as well NFIB Summary

The US Chamber of Commerce has created a good information sheet as well:  US Chamber of Commerce Checklist

If you are needing a worksheet to calculate the loan amount that you can access either one that was shared with me here:  Download Loan Amount Calculator Or BBSI Loan Calculator

Last Here is the link to download the Application.  PPP Application

Utah Residents have access to a few other programs as well.

Utah Leads Together Small Business Bridge Loan Program:

If you are a Utah Resident Utah has passed legislation called Utah Leads Together to allow for bridge loans:  The information from the state of Utah can be accessed here: https://business.utah.gov/utah-leads-together-small-business-bridge-loan-program/

Criteria Highlights

  • Businesses must be established and licensed before January 1, 2020, and in good standing with the Utah Division of Corporations and Commercial Code (will be verified here).
  • Applicants must have employees on their payroll for whom they have had payroll taxes withheld (i.e., W-2 employees).
  • Applicants must provide six months proforma of estimated lost revenue or other documented loss evidence.

Eligibility Highlights

  • Businesses that have experienced severe economic impact due to the COVID-19 pandemic.
  • Businesses that can demonstrate a multiplier impact on other industries.
  • Businesses that play a key role within a strategic state supply chain.
  • GOED will determine the eligibility of applicants. Applying is not a guarantee of funding.

Requirement Highlights

  • Financial statements: profit and loss, and balance sheet statements for the previous year, and most recent quarter or month.
  • Last year’s business state of Utah tax returns (2019 or 2018).
  • A copy of the business lease agreement or mortgage statement for the business location.

Salt Lake City Emergency Loan Program

Loan Program Guidelines:

  • Business must be within Salt Lake City Limits (see map)
  • Maximum loan amount: $20,000
  • Interest: 0%
  • Terms: 5 years
  • Loans can be used for ONLY:
  • Working Capital ( i.e. payroll, rent etc.), Marketing, Inventory
  • Applying for this loan will NOT disqualify you for additional funds from the SBA Emergency Loan Program.
  • Repayment will be deferred approximately 90 days following the expiration of the local emergency connected to the COVID-19 outbreak.
  • The funding for the Emergency Loan Program will be disbursed in two separate $500,000 rounds. The first application period deadline was Monday, March 23rd, 2020 at 11:59pm. Completed applications submitted before this deadline will be considered, reviewed and business owners will be notified of their approval status by Thursday, March 26th, 2020. Funds will be disbursed by the end of the week ending on March 27th, 2020.
  • All incomplete applications will be considered and reviewed for the second round of funding. Staff will contact applicants and assist them to complete their applications by the next deadline for consideration.
  • The next application deadline will be on Thursday, April 2nd at 11:59pm

You can get more information and apply Here: https://www.slc.gov/ed/elploan/

KIVA Loan Program

Up to $15,000 loan

o% Interest

Payback over 3 years

Note: this is a peer-to-peer lending method (a form of crowdfunding)

https://www.kiva.org/borrow

Facebook Small Business Grants Program

Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries where we operate. We’ll share more details as they become available   https://www.facebook.com/business/boost/grants?ref=eml

If you have other resources or know of other information please email [email protected]  We are all working together in this!

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