Small Business Disaster Loan Information
The available information is still evolving and any recommendations made here are based on our current understanding of the programs. It can and likely will change.
Please visit SBA.gov or the US. Treasury for updates on FAQ https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses for the most up to date information.
Presenter: Susheel Kumar, SBA Public Information Officer, Office of Disaster Assistance, Field Operations Center-West
Guest: Christy Hester, Director of Growth and Development, Independent Bankers Association of Texas
Discuss the EIDL broad overview; PPP updated funding; Interim rule released 4/24; the sole proprietor PPP application; and information thus far on forgiveness (more guidelines pending).
Q/A of attendees.
SBA Presentation 04/29/20-PDF understand this information is subject to change, it was compiled on 4/27/20. We had interim rules and updates on FAQ released again daily 4/27-4/29, see links below by date.
The EIDL is still open for applications, on 4/29 the site was undergoing updates so patience please. Mr Kumar, ODA, stated on 4/29 that EIDL is still accepting applications.
Questions on EIDL loan status contact SBA 1-800-659-2955 with your loan confirmation number.
PPP were filed direct to a lender so they can update you on the status of your funding.
U.S. Treasury How to Calculate Loan amounts 4/24/20 this is particularly helpful for our sole proprietor questions on determining the loan amount; you should have your 2019 schedule C completed. The link to the page also covers other organization types, ie. addresses the LLC which Christy Hester pointed out the manner you file business on your taxes would guide. Christy has been on Wednesday series of COVID War Room which is information on the filing questions to PPP, lenders perspective, and awaiting the pending literature on forgiveness. She did provide us a guideline on forgiveness in response to a client questions:
- “To determine the impact of headcount changes on PPP loan forgiveness, this is the formula: ·Multiply the total dollars used for specific expenses identified in the CARES Act incurred and spent during the eight weeks following receipt of your PPP loan by the average number of full-time equivalent (FTE) employees per month during the eight-week period. (Calculate average FTEs by averaging the number of FTE employees for each pay period within a month). ·Divide that product by the average number of FTEs per month from February 15, 2019, to June 30, 2019.
- Alternatively, the borrower may elect to use this formula: ·As above, multiply the total dollars used for specific expenses identified in the CARES Act incurred and spent during the eight weeks following receipt of your PPP loan by the average number of full-time equivalent (FTE) employees per month during the eight-week period. ·Divide that figure by the average number of FTEs per month from January 1, 2020, to February 29, 2020. “
For seasonal employers, use the average number of FTEs per month for the period beginning February 15, 2019, and ending June 30, 2019.
SBA Debt Relief – this program pays the loan principal and interest for existing SBA loan – contact your lender to make sure it is in place.
- Frequently Asked Questions (4/29/2020)
- Interim Final Rule 1 (4/2/2020)
- Interim Final Rule on Applicable Affiliation Rules (4/3/2020)
- Interim Final Rule on Additional Eligibility Criteria and Requirements for Certain Pledges of Loans (4/14/2020)
- Interim Final Rule on Requirements for Promissory Notes, Authorizations, Affiliation, and Eligibility (4/24/2020)
- Interim Final Rule on Additional Criterion for Seasonal Employers (4/28/2020)
- Interim Final Rule on Disbursements (4/28/2020)