SBA Loans During COVID

Written by Board Member

A Message from our Co-Presidents

 First and foremost, we hope you and your family are safe and are staying healthy. We are in extremely trying times both personally and professionally, yet, if we all do our part, we can pull through this.

 As you know, shelter in place and social distancing requirements have made it near impossible for some to keep their businesses functioning. We want you to know that the TNBPA is here to support you in any way we can.  Our members are strong and our community is incredibly resilient. Niagara county, and the TNBPA, understands that small businesses are the engine of our economy and are the core of our community – we firmly believe that we will overcome this trying time…especially if we support each other.

 The TNBPA wants to ensure that our members are aware of the help that is available to our business community.

 The Federal Government released stimulus funds to help businesses mitigate the negative impact of the pandemic.  We encourage you to explore all the options and educate yourself so you can decide IF these are viable options for you and WHICH one is best for your unique situation.

 You will find details on the available programs here: are. https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

 Paycheck Protection Program  Contact an SBA Lender. Contact your bank first, if they are not an SBA Lender, we have Banks in our membership who are.
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses. Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

 https://www.sba.gov/funding-programs/loans/paycheck-protection-program

  1.  FIRST talk to your bank. If they are not a lender, contact TNBPA for a list of SBA Lenders in our business community
  1.  MAKE SUREyou are working with an SBA lender. Scammers will emerge in this and you need to protect yourself by verifying you are working through an SBA Lender.      The Better Business Bureau has a great resource to track scams and report price gouging. https://www.bbb.org/council/coronavirus/  Please stay informed!

 These are items we are suggesting you have ready when the application process opens up:

Copies of your IRS Form 941 for all four quarters from 2019

-A breakdown of your January 2019 through February 2020 payroll expenses

            Payroll ledger for 2019 by employee

            Payroll ledger for YTD 2020 (same as above but shown by month)

-Complete 2019 financials (profit/loss and balance sheet)-to ensure SBA approval, all documentation must be verified

 The application process will open up on Friday April 3rd for small businesses and sole proprietors. On 4/10 it will open up for independent contractors and self-employed individuals.

Economic Injury Disaster Loan:
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. https://covid19relief.sba.gov/

Here are some frequently asked questions regarding the EIDL as of 3/20/2020

SBA Express Bridge Loans
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. https://www.sba.gov/document/support–express-bridge-loan-pilot-program-guide

SBA Debt Relief
The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis. Under this program:
The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
The SBA will pay the principal and interest of current 7(a) loans for a period of six months.

If you have questions regarding the programs above, we can help to point you in the right direction so you get the answers you need.

Furthermore, if you’d like us to share information about your business – especially if you have a “new” way of doing business that you would like communicated to our members – please feel free to pass it along. We’ll include the information on the TNBPA website, social platforms and in email blasts.

Please remember to support local businesses with dining take-out or other service needs.

We will all get through this very difficult time; stronger, better and more prosperous.

Stay safe, stay healthy and please stay home.

Janiene Ennis Garcia and Christopher Woods

 Co-Presidents, TNBPA

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