• Small businesses, 501(c)(3) nonprofit, a 501(c)(19) veteran’s organization, or Tribal business concern described in section 31(b)(2)(C) of the Small Business Act with not more than 500 employees, or the applicable size standard for the industry as provided by SBA, if higher.
• Sole-proprietors, independent contractors, and other self-employed individuals as eligible for loans.
• Businesses with more than one physical location qualify so long as total combined employees are below 500 employees (unless the businesses operated under NAICS code beginning with 72) or otherwise meet the SBA’s size standard based on NAICS code.
• Waives affiliation rules for businesses in the hospitality and restaurant industries, franchises that are approved on the SBA’s Franchise Directory, and small businesses that receive financing through the Small Business Investment Company (SBIC) program.
• Applies current SBA affiliation rules to eligible nonprofits.

Business must be operational as of February 15, 2020 and had employees for whom it paid salaries and payroll taxes, or a paid independent contractor.

4%

Average eligible monthly payroll costs, excluding compensation above $100,000 in wages (based on prior 12 months) multiplied by 2.5 (represents months) – plus – the balance of any SBA Loan closed between 1/31/2020 and when this loan will be made, if applicable – OR – $10 million whichever is less.

Allowable uses of the loan include eligible payroll support (eligible employee salaries which excludes compensation above $100,000 in wages, paid sick or medical leave, insurance premiums), interest paid on a mortgage (excludes any prepayment of or payment of principal) or rent, and utility payments.

10-year full payout loan. There will be no prepayment penalty. Allows for complete deferment of SBA 7(a) Loan payments for at least six (6) months and not more than a year.

• The loan will be unsecured.
• No personal guarantee required.
• No Credit Elsewhere Rule enforced.

• Cannot apply for any other programs through the SBA for the same purpose.
• If a borrower has an EIDL Loan (economic injury disaster loans) unrelated to COVID-19, borrower is still eligible.
• The emergency EIDL grant award of up to $10,000 would be subtracted from the amount forgiven under the Paycheck Protection Program.
• Eligible borrowers will be required to make a good faith certification that the loan is necessary due to the uncertainty of current economic conditions caused by COVID-19; they will use the funds to retain workers and maintain payroll, lease, and utility payments; and are not receiving duplicative funds for the same uses from another SBA program.

• The borrower is eligible for loan forgiveness equal to the amount spent by the borrower during an 8-week period after the origination date of the loan on eligible payroll costs, interest payments on any mortgage incurred prior to February 15, 2020 (excludes principal and prepayments), payment of rent on any lease in force prior to February 15, 2020, and payment on any utility for which service began before February 15, 2020. Amounts forgiven may not exceed the principal amount of the loan.
• Forgiveness on a covered loan is equal to the sum of the following: eligible payroll costs (excludes compensation above $100,000 in wages) incurred during the covered 8 week period compared to the previous year or time period, proportionate to maintaining employees and wages: eligible payroll costs plus any payment of interest on any covered mortgage obligation (excludes any prepayment of or payment of principal on a covered mortgage obligation) plus any payment on any covered rent obligation + and any covered utility payment. Borrowers will verify these payments through documentation required by lenders, such as (but not limited to) IRS Payroll Expense Forms 940 and 941, mortgage statements, lease statements and utility statements.
• The amount forgiven will be reduced proportionally by any reduction in employees retained compared to the prior year and reduced by the reduction in pay of any employee beyond 25 percent of their prior year compensation. To encourage employers to rehire any employees who have already been laid off due to the COVID-19 crisis, borrowers that re-hire workers previously laid off will not be penalized for having a reduced payroll at the beginning of the period.
• Canceled indebtedness resulting from this section will not be included in the borrower’s taxable income.
• Any loan amounts not forgiven at the end of one year are carried forward as an ongoing loan with terms of a max of 10 years at 4% interest. The 100% loan guarantee remains intact.

• Completed Application
• SBA Form 1919 or corresponding SBA Form 912, if applicable.
• Articles of Incorporation/Organization of each borrowing entity
• By Laws/Operating Agreement of each borrowing entity
• All owners Driver’s Licenses
• Payroll Expense verification documents to include:
• IRS Form 940 and 941
• Payroll Summary Report with corresponding bank statement
• If a Payroll Summary Report is not available, Employee Pay Stubs as of February 15, 2020 (or corresponding period) with corresponding bank statement, and,
• Breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.
• 1099s (if Independent Contractor)
• Certification that all employees live within the United States. If any do not, provide a detailed list with corresponding salaries of all employees outside the United States
• Trailing twelve-month profit and loss statement (as of the date of application) for all applicants
• Most recent Mortgage Statement or Rent Statement (Lease)
• Most recent Utility Bills (Electric, Gas, Telephone, Internet, Water)

The Small Business Administration’s (SBA) disaster loans are the primary form of Federal assistance for the repair and rebuilding of non-farm, private sector disaster losses. The disaster loan program is the only form of SBA assistance not limited to small businesses.

The Economic Injury Disaster Loan Program (EIDL) can provide up to $2 million of financial assistance (actual loan amounts are based on amount of economic injury) to small businesses or private, non-profit organizations that suffer substantial economic injury as a result of the declared disaster, regardless of whether the applicant sustained physical damage.

An EIDL can help you meet necessary financial obligations that your business or private, non-profit organization could have met had the disaster not occurred. It provides relief from economic injury caused directly by the disaster and permits you to maintain a reasonable working capital position during the period affected by the disaster. EIDLs do not replace lost sales or revenue.

To be eligible for EIDL assistance, small businesses or private non-profit organizations must have sustained economic injury and be located in a disaster declared county or contiguous county.

The SBA can provide up to $2 million in disaster assistance to a business. The $2 million loan cap includes both physical disaster loans and EIDLs. There are no upfront fees or early payment penalties charged by SBA. The repayment term will be determined by your ability to repay the loan.

Small Business Emergency Assistance Grant Program – A $5 million program that will provide grants up to $5,000 to small businesses in retail, arts, entertainment, recreation, accommodation, food service, and other services – such as repair, maintenance, personal, and laundry services – to stabilize their operations and reduce the need for layoffs or furloughs.

• Small Business Emergency Assistance Loan Program – A $10 million program that will provide working capital loans of up to $100,000 to businesses with less than $5 million in revenues. Loans made through the program will have 10-year terms with 0% interest for the first five years, then resetting to the EDA’s prevailing floor rate (capped at 3%) for the remaining five years.
• Community Development Finance Institution (CDFI) Emergency Loan Loss Reserve Fund – A $10 million capital reserve fund to take first loss position on CDFI loans that provide low interest working capital to microbusinesses. This will allow CDFIs to withstand loan defaults due to the outbreak, which will allow them to provide more loans at lower interest rates to microbusinesses affected by the outbreak.
• CDFI Emergency Assistance Grant Program – A $1.25 million program that will provide grants of up to $250,000 to CDFIs to scale operations or reduce interest rates for the duration of the outbreak.
• NJ Entrepreneur Support Program – A $5 million program that will encourage continued capital flows to innovation economy companies and temporarily support a cautious investor market by providing 80% loan guarantees for working capital loans to startup entrepreneurs.
• Small Business Emergency Assistance Guarantee Program – A $10 million program that will provide 50% guarantees on working capital loans and waive fees on loans made through institutions participating in the NJEDA’s existing Premier Lender or CDFI programs.
• Emergency Technical Assistance Program – A $150,000 program that will support technical assistance to New Jersey-based companies applying for Economic Injury Disaster Loans through the U.S. Small Business Administration. The organizations contracted will be paid based on SBA application submissions supported by the technical assistance they provide.

We continue to strongly urge all business owners who are interested in these programs to QUICKLY take inventory of all necessary evidence of cash flow and income over the past year, including receipts and invoices, and to connect with your accountants. This way you can put your most effective foot forward during the application process and get in early. Don’t wait.

Get ready now!

Administered by the Pennsylvania Industrial Development Authority (PIDA), the COVID-19 Working Capital Access Program (CWCA) provides critical working capital financing to small businesses located within the commonwealth that are adversely impacted by the COVID-19 outbreak.

ELIGIBLE BUSINESSES A for-profit corporation, limited liability company, partnership, proprietorship or other legal business entity located in the Commonwealth of Pennsylvania and having 100 or fewer full-time employees worldwide at the time of submission of the application.

ELIGIBLE COSTS Working capital, which for purposes of this program is considered capital used by a small business for operations, excluding fixed assets and production machinery and equipment.

LOAN AMOUNTS, MATCHING INVESTMENT, JOB REQUIREMENTS

• The maximum loan amount is $100,000.
• No match is required except for retail / service enterprises in which case the CWCA program can finance 50% of eligible working capital costs up to $100,000.
• There are no job retention / creation requirements.

INTEREST RATES AND TERMS

•  Interest Rate – Zero percent (0%) except for agricultural producers, in which case the interest rate will be two percent (2%).
• Terms – Three (3) years with a 12-year amortization. In addition: – No payments will be due and payable during the first year. – Principal and, if applicable, interest payments will be due monthly for years two and three. – A balloon payment will be due and payable at the end of the third year.

COLLATERAL

• The loan shall be secured by a blanket lien on all business assets currently owned or acquired in the future at the highest lien position available.
• The loan shall be guaranteed by any individual or entity with a 20% or greater ownership interest in the eligible business enterprise.

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