Sawyer County Covid-19 Local Recovery Webinar With Andy Donahue, Director Small Business Development Center, University of Wisconsin – Superior 2pm – Thursday, April 9th, 2020
Available Programs: • SBA Economic Injury Disaster Loan: https://covid19relief.sba.gov/ • SBA EIDL Grant – check the box! Under additional information • Paycheck Protection Program – contact your nearest SBA Lender • SBA Express Bridge Loan – Need to have existing SBA relationship with lender prior to 3/13/2020 • SBA Debt Relief – SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months.
Paycheck Protection Program (PPP) for Independent Contractors and Self-Employed Individuals • Starting Friday (April 10), independent contractors and self-employed individuals can apply for PPP loans through existing SBA lenders. • There is a funding cap, so the Treasury Department recommends applying as soon as possible. • This loan has a maturity of 2 years and an interest rate of 1%. • The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Determination of loan amount: • Payroll costs include: • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee); • Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit; • State and local taxes assessed on compensation; • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee. • 2.5x this amount will calculate loan amount.
Loan Amount to be used for: • Must use loan proceeds for the following expenses during the 8-week period commencing on the origination date of the loan: • Payroll costs • Rent • Mortgage interest and • Utilities • SBA advising that not more than 25% of the loan proceeds can be used for non-payroll costs
Loan forgiveness • If employee headcount is reduced: • (Payroll costs x avg. number of FTE per month during 8 week period) / (Avg. number of FTE per month from 2/15/19-6/30/19) • If salaries are reduced: • Payroll costs – the amount of reduction in wages for employees making $100K or less that is greater than 25% compared to most recent quarter • Employees making > $100K may have wages reduced by any amount • Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
https://wisconsinsbdc.org/services/covid-19/
Non-Lending Resources • Small Business Development Center Consulting • Business Start-Up and Expansion Planning • Financial analysis • Marketing and Social Media audits • Strategic Planning • SCLCO Economic Development
FAQ • What is the turn around time for both EIDL and PPP? • EIDL - $10K grant – Will be in account within three days of loan approval. Complete application time is between three and five weeks. PPP – Application approval can be within the day or longer – depending on business and lender. • To receive funds for PPP, you need to sign the documents that send you. Small window from application approval to sign.
FAQ • Are SBA preferred lenders up to speed on program? Can not specifically say – most are, but some might not be. • • How do owner's draws factor into this? Owners can apply for EIDL and PPP and consider their own draw as a “payroll expense” as long • as they can provide documentation of that person’s draw. • If the business has no other employees rather than themselves, can they get the funding for their own salary? Even if a sole prop or LLC? Yes, either a sole proprietorship or a one-member LLC can apply for EIDL as long as they can • provide an allowable documentation of how the one person is “paid.”
FAQ • Resource contact for the SBA: Office of Disaster Assistance to check the status of your EIDL application (with the confirmation number definitely needed) at 800-659-2295, but due to call volume best to try their email at disastercustomerservice@sba.gov.
Questions Contact Information: Andy Donahue Nikki Olson adonahue@uwsuper.edu nolson37@uwsuper.edu (715) 394-8352 (715) 394-8147
• THANK YOU • Contact info: • Info@sclcoedc.com • sclcoedc.com/recovery-assistance • SCLCOEDC Facebook Page • Remember we are in this together and we are here to help you!!!!
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