CARES Updates LIVE Q & A for Small Businesses · PowerPoint Presentation Author: Sunita Created...

CARES Updates LIVE Q & Afor Small Businesses

With Northern California SBDC and Finance Center

Session 24 | 6/1/20

Introduction

Northern California SBDC• Supported by the SBA and State of California• No Fee Advising for Small Business

The Finance CenterSpecializes in getting loans for small businesses

• Scott Rogalski Director• Sunita Maharaj Associate Director

• Disclaimer • Paycheck Protection Program (PPP) Overview &

Calculations • $10Billion Injection into CDFI’s• Economic Injury Disaster Loans (EIDL) Overview• CA State Guarantee Loans Available • NorCal SBDC Partnering with Attorney’s • SBA Update

Agenda

Disclaimer

• Things are changing all the time • This information was correct when this presentation was put together • There is still money available for PPP• EIDL Advance is an automatic direct deposit (ACH) SBA-D• If you applied for EIDL before web-portal shut down – SBA will get

back to you • We do not have access to check the status on your EIDL loan • We are not privy to lenders coming forward for Main Street Programs • Resilience Roadmap – Reopening Info: covid19.ca.gov/roadmap/

Forms for the PPP Loan

(1% - 2year – 6-month payment deferment)

Universal Form – Ask your local SBDC office or loans@asksbdc.comSole Props – 2019 Schedule C, (1099’s from 2019) All other entities – 2019 (W2’s/941’s or 940’s)

8 Weeks Start the day you get funded or first payroll date after funding

What’s forgivable:75% to 100% on payroll costs

25% or less on Rent/Utilities/Interest mortgage payments

• $10B set aside from the round 2 (current) PPP funding allocation

• Includes $3.2B in PPP loans CDFI's have already made in round 2

• There's $6.8B remaining in their set aside• Helping to ensure smaller businesses in low-income

communities have more opportunities to access PPP funds • PPP round 2 has approximately $120B still available

Redirecting PPP Funds to CDFI’s

Included in Payroll Costs

Not Included in Payroll Costs

PPP Forgiveness

Schedule C to calculate the following:Loan amount – take line 31 divide by 12 and multiply by 2.5Forgiveness – take line 31 divided by 52 and multiply by 8Max amount = $15,385

Schedule K to calculate the following: Loan amount – box#14 - divide by 12 and multiply by 2.5Forgiveness – box#14 - divided by 52 and multiply by 8

Schedule C & K for the PPP Loan

EIDL Info & Forms Economic Injury Disaster Loans = EIDL 30 years, 3.75%, 11 months payment deferment, unforgivable

Only open for Agricultural Businesses at this time

SBA Forms4506T – IRS Tax Transcript Request Form 413D – Personal Financial Statement – no business info 2202 – Schedule of Liabilities for the business

What Can EIDL Be Spent On

CA State Guarantee Disaster Loan Options

Eligible to apply for Disaster State Guarantee: Does not qualify for the EIDL and PPP Credit Issues – (Lenders still might have a minimum FICO Score and/or required Bankruptcy, short sale/foreclosure seasonality) Non-US ID 501C-6 No payroll Any delinquent federal loan liens

Current Loans offered: Up to $50,000 Micro-Loan – Ibank.ca.gov to find information and lendersUp to $1,000,000 – Financial Development Corps Solano South – chorton@nor-calfdc.orgYolo North - loans@asksbdc.com

SBA Update

SBA Disaster contact info:800-659-2955

disastercustomerservice@sba.gov

SBA Loan SupportSBA will automatically pay the principal and interest of current 7(a), 504 and microloans for six monthsSBA will also automatically pay the principal, interest and fees of new7(a), 504 and microloans funded prior to September 27,2020

Q&A