Best Practices for Getting a PPP Loan Speakers Dan Martini , VP - PowerPoint PPT Presentation

Best Practices for Getting a PPP Loan

Speakers Dan Martini , VP Congressional Relations & Political Affairs Dafina Williams , Senior Vice President, Public Policy Opportunity Finance Network Jeffrey Tews , Franchisee, Brightstar Care John Matta , Dunkin’ Donuts Franchisee & Chairman, Coalition of Franchisee Associations community.franchise.org

PPP Policy & Funding Overview Overview: Funds to pay up to 8 weeks of payroll • FUNDING costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities, but CARES: $349 billion • 75% of forgiven amount must be on payroll. Loan payments deferred for six months. No collateral or PPP & Health Care Enhancement Act: $310B • personal guarantees required. Neither the Additional $250B for current program  government nor lenders will charge small businesses $60B set aside for depository and lending  any fees. institutions such as community banks, CDFI’s, etc. with assets under $50B Forgiveness: Based on the employer maintaining or • quickly rehiring employees and maintaining salary  $30B is for lending institutions between $10- levels. Forgiveness reduced if full-time headcount $50B in assets declines, or if salaries and wages decrease.  $30B is for lending institutions with less than $10B in assets Eligibility: Under 500 employees; SBA Franchise • Directory; NAICS 72 (hotels/restaurants) community.franchise.org

SBA Funding Data community.franchise.org

IFA Survey Data Responses from 409 franchise owners between April 14 – 20 74% of franchise businesses have had to close their • locations 98% of franchise owners have applied for government • assistance via PPP or EIDL; Only 36% of franchise owners respondents have had their • PPP Loans approved and disturbingly, just 11% have received funding; Only 12% have had their EIDL loans approved and only • 5% have received funding. community.franchise.org

Media v. Reality community.franchise.org

SBA’s Paycheck Protection Program (PPP ) How do I find a Lender?  Use SBA’s Find an Eligible Lender Tool.  If you have an existing lender, and they are accepting PPP applications, consider applying through them as the paperwork requirements and time to approval is reduced.  If you do not have an existing lender, you can apply to any lender accepting PPP applications. Dan Martini – American Bankers Association VP, Congressional Relations & Political Affairs dmartini@aba.com community.franchise.org

SBA’s Paycheck Protection Program (PPP ) Helpful Links  Treasury’s Assistance for Small Businesses  SBA Paycheck Protection Program  SBA Economic Injury Disaster Loan community.franchise.org

Where Can I Find a CDFI? To find a CDFI near you, • access the CDFI Locator. ofn.org/cdfi-locator • Shows OFN members • serving your community Search by CDFI type, • states served or sector community.franchise.org

Where Can I Find a CDFI? Use the CDFI Coverage • Map ofn.org/cdfi-coverage-map • Enter your address to see • CDFI located in or lending in your community community.franchise.org

Where Can I Find a CDFI? Visit the Department of • Treasury’s CDFI Fund website View the list of certified • CDFIs Up to date spreadsheet of • all 1,100+ certified CDFIs community.franchise.org

CDFIs Making PPP Loans Organization Name HQ City HQ State Access to Capital for Entrepreneurs Cleveland GA Black Business Investment Fund Inc. Orlando FL BSD Capital, LLC dba Lendistry Brea CA CDC Small Business Finance Corporation San Diego CA Community First Fund Lancaster PA Community Reinvestment Fund Minneapolis MN Flagship Enterprise Center, Inc. (dba Bankable) Anderson IN Hope FCU Jackson MS Legacy Redevelopment Corporation Milwaukee WI LiftFund, Inc. San Antonio TX MOFI Missoula MT Mountain BizWorks Asheville NC Opportunity Resource Fund Lansing MI PeopleFund Austin TX Renaissance Economic Development Corporation New York NY The Progress Fund Greensburg PA Wisconsin Women's Business Initiative Corporation Milwaukee WI Women's Opportunity Resource Center Philadelphia PA community.franchise.org

Jeffrey Tews Franchisee, Brightstar Care community.franchise.org

John Matta, Dunkin’ Donuts Franchisee & Chairman, Coalition of Franchisee Associations community.franchise.org

Questions? community.franchise.org

Join IFA’s Franchise Action Network! The Franchise Action Network is the IFA’s grassroots army. FAN membership is FREE As a member of FAN, you can: Be alerted to opportunities to contact your legislators before votes • on legislation affecting the future of franchising For the CARES Act alone, FANs sent over 35,000 letters to elected • officials Receive our bi-monthly newsletter called FANMail to keep you • current on everything in advocacy and pop culture related to franchising Be invited to local events with lawmakers in your area • community.franchise.org