SBA Information

Here is information regarding the SBA and what is being offered:

Here are the highlights of the stimulus package. All you have to do is meet with your banker. They will have all the forms.

1. Eligibility
   1. Any small business, contractor, non-profit or sole proprietor with less than 500 employees
   2. Be in business on Feb 15,2020
2. Maximum Loan Amount – by formula below, but no more than $10 million
   1. 2.5 times the average monthly payments of
      1. All payroll and benefits – to annualized maximum of $100,000 per employee
      2. Rental Payments
      3. Utilities
      4. Interest on debt
3. Interest Rate 4%
4. Term – up to 10 years
5. Payments- deferred for the first 12 month, then amortized over balance of term. However, it is expected that these loans will be totally forgiven by the SBA before payments are to start.
6. Collateral – None
7. Personal Guarantees- None
8. Loan Forgiveness– the borrower must provide the bank with documented records of the use of the loan proceeds. After acceptance of the documentation by the bank, the loan will be forgiven by the SBA.

My initial suggestion is to start gathering all W2, 1099, benefits paid, utilities, rent payments, and interest paid on debts. Having this in hand up front will allow us to calculate the loan amount much faster and get these done as fast as possible.

If you’re approved for the money one other suggestion is that you open a separate account and pay the approved expenses out of that account until it is depleted to be sure it was not comingled and you don’t get credit for spending it correctly.