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Financial Resources for Small Businesses
• SBAEIDLLoanandEIDLAdvance• PayrollProtectionProgram• SBAExpressLoan• DebtReductionProgram• CommunityCapitalNewYorkEmergencyExpressLoan
SBA Economic Injury Disaster Loans (EIDL)
Loansupto$2millionfor30yeartermsavailabletosmallbusinessesadverselyaffectedbytheCOVIDvirus.
Ratesaresetat3.75%forbusinesses,2.75%fornotforprofits.
Theloansconsistofborrowedfundsanduptoa$10,000Advance($1000peremployee)thatwillnotneedtoberepaid.YoudonotneedtotakealoantogettheAdvance.
SBA Disaster Relief Loans (EIDL Advance)
Thisapplicationisonlineandquitesimpletocomplete.WearehearingthatfolkswhoappliedfortheAdvancetwotothreeweeksagoaregettingnotificationsback.Nofundstodate.
TheEIDLAdvanceapplicationandtheEIDLLoanapplicationarethesame.AsyoufilltheapplicationoutyouwillgettoapointwhereitasksifyouwanttheAdvanceandyoujustcheckyes.
The EIDL Application
IsonlineattheSBAwebsite:https://www.sba.gov/page/disaster-loan-applications#section-header-0.
Youmaybeaskedtoto provide:
§ CompletedSBAloanapplication(SBAForm5or5C).§ TaxInformationAuthorization(IRSForm4506T)fortheapplicant,principalsandaffiliates.
§ 4/1/20
EIDL Application, continued
• CompletecopiesofthemostrecentpersonalFederalIncomeTaxReturn.
• ScheduleofLiabilities(SBAForm2202).
• PersonalFinancialStatement(SBAForm413).
• Completecopy,includingallschedules,ofthemostrecentbusinessFederalincometaxreturnforprincipals,generalpartnersormanagingmember,andaffiliates.
• Acurrentyear-to-dateprofit-and-lossstatement.
EIDL Application, continued
§ IfthemostrecentFederalincometaxreturnhasnotbeenfiled,ayear-endprofit-and-lossstatementandbalancesheetforthattaxyear.
§ AdditionalFilingRequirements(SBAForm1368)providingmonthlysalesfigures.
§ Ifyouareaskedforthesedocumentsyouwillhavetoprovidethemwithinsevendays,soyoushouldgettheminhandinadvance,justincase.
Payroll Protection Program (PPP)
$377billioninSBAbackedloansmadebybankandnonbanklenders.Thepurposeistoencourageemployeeretention.
§ Fundscanbeusedtocoverpayrollcosts,andmostmortgageinterest,rent,andutilitycostsoverthe8weekperiodaftertheloanismade;and
§ Employeeandcompensationlevelsmustbemaintained.
Payroll Protection Program (PPP), cont.
§ Payrollcostsarecappedat$100,000onanannualizedbasisforeachemployee.
§ Duetolikelyhighsubscription,itisanticipatedthatnotmorethan25%oftheforgivenamountmaybefornon-payrollcosts.
§ Loanpaymentswillbedeferredfor6months.§ Theportionsoftheloanspentonpayingemployees,amortgage,rentorutilitiesforthebuildingyourbusinessoccupieswillnothavetoberepaid.
PPP, continued
§ Itisavailabletoallbusinessesincludingnotforprofits,soleproprietorships,self-employedandindependentcontractors.
§ Loansareavailableupto$10million§ Interestissetat1%withatwoyearterm§ Thefirstpaymentisdeferredforsixmonths§ Thereisnorequirementforcollateral,orguaranties§ EmployersmustmaintaintheiremployeesforatleasteightweeksaftertheloanoriginationdateorrehirefurloughedemployeesbyJune30th.
§ 4/1/20
How to Apply
§ Youdonotapplyforaspecificamount,youcompletetheapplicationandtheSBAwilldecidehowmuchyougetbasedontheformula.
§ PPPwillrefinanceanEIDLloan§ Youneedtofindalenderthatisacceptingapplicationsfortheseloans
§ Startwithyourbusinessbankingpartner§ Use,butbewareofon-linelenders
PURPOSE
Forgivableifusedforpayroll(minimumof75%ofthefundsreceived)andtheremainingforcertainoperatingexpenses(amountofanyEIDLadvanceisnotforgivable)
Tomeetfinancialobligationsandoperatingexpensesthatcouldhavebeenmethadthedisasternotoccurred(amountofanyEIDLadvanceisforgiven)
TERMSUpto$10million
1%interestrate
Upto$2million- ?
3.75%forbusinesses
2.75%fornon-profits
FORGIVABLE YESNO– EIDLLoan
YES– EIDLAdvance
MATURITY 2years 30yearsFIRSTPAYMENTDUE Deferred6months Deferred1year
Paycheck Protection Program Full EIDL Loan
PaycheckProtectionProgramvs.EIDLAdvance/Loan
SBA Express Loans
§ OfferedbySBAExpressLenders§ TosmallbusinesseswhocurrentlyhaveabusinessrelationshipwithanSBAExpressLender
§ Upto$25,000§ InterestrateiscappedatPRIME+6.5%§ Nocollateralisrequired§ “Fastturn-around”§ RepaidinpartorinfullbyEIDL,ifreceived
Debt Reduction Program
§ TheSBAwillautomaticallypaytheprincipal,interest,andfeesof current7(a),504,andmicroloans foraperiodofsixmonths.
§ TheSBAwillalsoautomaticallypaytheprincipal,interest,andfeesof new7(a),504,andmicroloans issuedpriortoSeptember27,2020.
Who is Community Capital New York
WeareanotforprofitcommunitydevelopmentlenderservingsevencountiesintheHudsonValleyandFairfield,CT.
Weprovidealternatefinancingtosmallbusiness(andaffordablehousing)thattraditionallendersareunabletooffer.
WearecertifiedbytheUSDepartmentoftheTreasuryasaCommunityDevelopmentFinancialInstitution(CDFI)andbytheUSSmallBusinessAdministration.
Emergency Express Loan
§ Upto$10,000§ AllborrowersmusthaveaFICOscoreof650orbetter§ Principleandinterestpaymentsdeferredfor90days§ 2%interestrate;27monthterm§ $25applicationfee§ 2%closingfee§ Approximatelyfivedayturnaround
Eligibility
§ MinimumFICOscoreof650forallbusinessowners§ LocatedinSullivan,Ulster,Dutchess,Putnam,Orange,Rockland,orWestchesterCounty
§ Nomorethan$1000inunresolvedjudgments,liens,collectionsorchargeoffs
§ Nopastdueonanyobligation(i.e.rent/utilities/childsupport)§ Noderogatoryinformationonyourcreditreportinthepastsixmonths
§ Nopersonalbankruptcyinthelast36monthsexceptformedicalreasons
To apply:
https://communitycapitalny.org/emergency-express-loan
Documentsyouwillneedtoprovide:
§ MostRecentPersonalTaxReturn§ MostRecentBusinessTaxReturn§ BusinessOrganizationalDocumentsincludingDBAinformationifapplicable
§ EINNumberVerification§ ACopyofyourDriverLicenseoranyGovernmentIssuedID§ Additionalinformationasneeded
Other Loans:
CommunityCapitalmakesloanslargerthan$10,000andtothosewhosecreditscoreislessthan650,however,thoseloanswillneedtobeunderwritteninamoretraditionalwayandwilltakelongertoprocess.
Thank You
Hanginthereandpleasedon’thesitatetoreachoutifIcanansweranyquestions: