ABOUT US SIPA enriches and empowers generations of Pilipino - - PowerPoint PPT Presentation

ABOUT US SIPA enriches and empowers generations of Pilipino Americans and

• thers by providing health and human services, community economic

development, arts and culture, and a place where all people of all backgrounds can come together to strengthen community.

Small Business Funding Opportunities April 7, 2020 12 pm – 1 pm PST

• Small Business Funding Opportunities

April 7, 2020 12 pm – 1 pm PST

MODERATOR

Anna Marie Cruz

Western Regional Manager, Initiative for a Competitive Inner City Founder, Entrepinayship https://icic.org/small-business-resource-center-covid-19-crisis/ ICIC drives inclusive economic prosperity in under-resourced communities through innovative research and programs to create jobs, income and wealth for local residents. Inner City Capital Connections: Capacity-building, Coaching, Capital Program for business owners across the country in 16 cities and online for businesses past the startup phase. https://icic.org/urban-business-initiatives/inner-city-capital- connections/

Small Business Funding Opportunities April 7, 2020 12 pm – 1 pm PST

• Today’s Topics

(Goal: To help you navigate financial resources)

• Microloans and Grants
• Non-Bank SBA Lending
• Bank SBA Lending
• Updates on CARES Act & PPP
• Resources
• Q & A

PRESENTER

Emma Kloppenburg

Program Officer LISC LA | Local Initiatives Support Corporation Local Initiatives Support Corporation is a national non-profit

• rganization supporting community development in cities and rural

areas throughout the country. LISC serves as an intermediary, building bridges between local non- profit partners and the resources they need to transform underserved neighborhoods into thriving communities of opportunity and choice. https://www.lisc.org/los-angeles/

PRESENTER

Monica Guevara

Loan Officer CDC Small Business Finance

A nonprofit with a passion for helping Main St. small businesses grow and create jobs, offering a variety of low-interest financing that fit the needs of small businesses no matter where they are in the growth cycle. www.cdcloans.com

15

• COVID-19 EMERGENCY LOAN

PROGRAMS

Presented by: Monica Guevara, Loan Officer CDC Small Business Financing

16

WHAT IS A CDC?

CDC = Certified Development Company CDCs are certified by the SBA (Small Business Administration) to administer SBA 504 loans, primarily for commercial real estate. CDCs are private, non-profit entities with a mission to provide business financing to those who aren’t quite strong enough for bank financing. 260+ CDC’s in the country

EMERGENCY LOAN PROGRAMS

SBA, CDC Small Business Finance, Cares ACT programs: PPP & Debt Relief Program

SBA DISASTER LOAN PROGRAM

• Disaster Loans offered up to $2,000,000 in financing directly through the SBA.
• Apply here: https://covid19relief.sba.gov/#/
• $10,000 advance (grant) is available via the same link
• Term up to 30 years
• Rate: 3.75%
• This product is only offered directly by the SBA. CDC Small Business 


Finance does not offer it or participate in the loan application process.

• EMERGENCY ECONOMIC INJURY

GRANTS

• These grants provide an emergency advance of up to $10,000 to small

businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL).

• To access the advance, you must first apply for an EIDL and then request the
• advance. The advance does not need to be repaid under any circumstance, and

may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.

PAYMENT PROTECTION PLAN

• This program offers financing to support payroll and other fixed operating

expenses.

• Max loan is 2.5 times your average monthly payroll over the last 12

months or $10,000,000, whichever is smaller.

• After two months you can apply for debt forgiveness after providing proof

that they funds were spent as required. Otherwise it converts to a loan.

• 75% of the fund must be used for payroll to qualify for debt forgiveness.
• CDC SBF is offering this to our own borrowers only at this time. 


Contact your bank to see if they are offering this loan.

• SMALL BUSINESS DEBT RELIEF

PROGRAM

• This program provides immediate relief to small businesses with non-disaster

SBA loans, in particular 7(a), 504, and microloans.

• Under it, SBA will cover all loan payments on these SBA loans, including

principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law.

CDC SMALL BUSINESS FINANCE EMERGENCY LOAN PROGRAMS

COVID-19 Working Capital Loans through CDC Small Business Finance

• COVID-19 WORKING CAPITAL

LOAN PROGRAM

ü Offered directly by CDC Small Business Finance ü Geography: Available in California, Nevada, Arizona
 Washington, DC; Detroit, MI; and Houston, TX ü Max loan: $150,000 or last year’s total sales, whichever is smaller ü Loans offered for working capital only ü Credit: score of at least 680, BK at least 3 years old, no open liens or judgements ü Rates: Prime + 2.75% to Prime + 4.75% ü Terms: 7-10 years ü You can also learn more about our emergency loans here:

https://cdcloans.com/emergencyrelief/

• COVID-19 WORKING CAPITAL

LOAN PROGRAM

Checklist items needed to apply ü 3 months of current bank statements ü Last three years business tax returns ü Most recent personal tax return ü CDC Forms: CDC COVID-19 Loan Application, PFS, Debt Schedule ü Brief written summary of how you have been impacted by Covid-19 emergency and if loan will be used to preserve jobs

PRESENTER

Lois Pagaspas Klavir

Vice President | Business Relationship Manager III Chase Bank Chase serves nearly half of America’s households with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing.

What am I sharing with you today?

u General bank response u Bank’s role in the EIDL and PPP u PPP – Who Can Apply, Loan Details and Forgiveness u Current programs available

DISCLAIMER: Views and opinions are my own.

Bank’s response to the crisis

u Focus on existing customers u Waiver of some fees such as deposit accounts and

merchant services

u Deferrals on existing loans, lines and credit cards u Who qualifies for PPP? u Automation of PPP application process

u Online banking u Intake form or actual PPP application u Emailing or uploading forms; or DocuSign

Relationships and Technology are more important than ever.

Bank’s role in EIDL

u Banks DO NOT process the Economic Injury Disaster Loans

(EIDL).

u Go directly to the SBA website.

https://covid19relief.sba.gov

Bank’s role in PPP Paycheck Protection Program

u The PPP is loan designed to provide a direct incentive for small businesses to

keep their workers on the payroll.

u 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.

u You can apply through any existing SBA 7(a) lender or through any federally

insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program.

u Lenders may begin processing loan applications as soon as April 3, 2020. The

Paycheck Protection Program will be available through June 30, 2020.

Who Can Apply for the PPP?

The following entities affected by Coronavirus (COVID-19) may be eligible:

u Any small business concern that meets SBA’s size standards (either

the industry based sized standard or the alternative size standard)

u Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans

• rganization, or Tribal business concern (sec. 31(b)(2)(C) of the Small

Business Act) with the greater of:

u 500 employees, or u That meets the SBA industry size standard if more than 500

u Any business with a NAICS Code that begins with 72

(Accommodations and Food Services) that has more than one physical location and employs less than 500 per location

u Sole proprietors, independent contractors, and self-employed

persons

PPP Loan Details and Forgiveness

u The loan will be fully forgiven if the funds are used for payroll

costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll).

u Loan payments will also be deferred for six months. u No collateral or personal guarantees are required. u Neither the government nor lenders will charge small

businesses any fees.

u Forgiveness is based on the employer maintaining or quickly

rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

u This loan has a maturity of 2 years and an interest rate of 1%.

PPP Application SBA Form 2483

Calculation:

u Average Monthly Payroll x

2.5 + EIDL (net of advance) Payroll documentation:

u Form 941

Ineligible if Yes to:

u Bankruptcy u Defaulted on gov’t loan u Criminal charges u Felony

Bank lending programs

u SBA Lending

u SBA 504 u SBA 7(a) u SBA Express

u Conventional Lending

u Owner-user building purchase or refinance u Equipment u Business acquisition u Line of credit

PRESENTER

Geraldine “Geri” Sanchez Aglipay

National Women's Entrepreneurship Manager & Senior Outreach Manager, Midwest and Greater Chicago Small Business Majority Small Business Majority is a national small business advocacy organization, founded and run by small business owners to ensure America's entrepreneurs are a key part of a thriving and inclusive economy. SBM actively engages small business owners and policymakers in support of public policy solutions, and delivers information and resources to entrepreneurs that promote small business growth and drive a strong, sustainable job-creating economy.

www.venturize.org/access-capital www.smallbusinessmajority.org

About Small Business Majority

• Small business education and advocacy organization – founded

and run by small business owners. Been in business since 2005.

• National – 6 offices in Washington, D.C., California, Colorado,

Illinois, Maryland and Virginia

• Focus on issues of top importance to small businesses (<100

employees) and the self-employed, including access to capital, healthcare, retirement, entrepreneurship, taxes and more; work supported by extensive research

• Our online resource hub located at Venturize.org brings

resources and education to small business owners in key areas of running and growing a small business.

About Small Business Majority: Our Model

Policy updates

Small Business Borrowers’ Bill of Rights Resources, tools and how to get involved

Topics of discussion

• Phase 1: President signed Coronavirus Preparedness and Response

Supplemental Appropriations Act

• Provides $8.3 billion in emergency funding for federal agencies to respond to

the coronavirus outbreak

• Enables the Small Business Administration to make an estimated $7 billion in

low-cost loans to affected small businesses

• Phase 2: President signed the Families First Coronavirus Response Act
• Creates the Emergency Family and Medical Leave Expansion Act and

the Emergency Paid Sick Leave Act

• Secretary of Labor can exempt businesses with fewer than 50 employees from

the emergency family and medical leave expansion’s requirements

Developments and recommendations to support small business Policy updates

• The CARES Act was signed last week, Phase 3, which is a larger stimulus package
• f $2 trillion that would include more $377 billion in small business emergency
• loans. Some of these loans can be forgivable under the Paycheck Protection

Program requirements

• We are urging Congress and the President to do the following:
• Pass a sizeable bailout for small businesses so they can keep making payroll, keep their

doors open and avoid mounting debt.

• Expand unemployment insurance, but guarantee that small businesses do not have to pay

the inevitably high price-tag.

• Ensure the Economic Injury Disaster Loan process, and other forms of federally-funded

access to credit, is efficient and quick so that small businesses don't have to wait months to keep their businesses afloat.

• Enact policies NOW that keep small businesses safe from predatory lending while they try

to identify new forms of credit to keep their businesses open.

Developments and recommendations to support small business Policy updates

• A new breed of online lenders are innovating small business

lending, expanding new options for entrepreneurs

• Simple, streamlined application process
• Quick approval and delivery of funds
• Use of technology and new sources of social data to assess risk
• Online lending is largely unregulated at this point
• Typically higher interest rates than banks
• Not all online lenders are equal and some mask very high rates

Alternative online lenders

The funding landscape Small businesses must proceed with caution!

1. Online marketplace lenders connects businesses with investors for funds and term loans (Examples: Funding Circle, Lending Club, Prosper). 2. Payment vendor loans: Be cautious of your ability to make loan payments

• n short-terms that may have high fees and interest rates

3. Online cash flow lenders offer short-term loans. Payments made by daily deductions of a fixed amount or percent of sales; Require access to business bank account or payment systems. Be cautious of opaque pricing, high interest rates. 4. Merchant cash advance (MCA) is cash up-front in exchange for a portion of future sales. Provider takes a percent of credit card/debit sales daily until the loan, plus a premium, is paid back; also known as payday loans for small businesses.

Four types of unregulated online lenders

Start a business: financial foundations for success

• Loan brokers are not lenders! A loan broker is a third-party who “shops” your

business to a lender (banks, CDFI, and online companies) for funding.

• Loan brokers earn money from a combination of:
• Referral fees from the actual lender (banks, CDFI, online companies)
• Small business owner fees when it’s time to “close the deal”
• Brokers can help save time when seeking financing, but their fees vary per

product.

• Fees are unregulated; fees can be as high as 20% of a loan
• They may not be transparent about loan terms & fees; ask upfront about fees and APR
• They may push higher-cost products as incentive to get higher fees.
• They may refer owners to online predatory financing if owners are desperate.
• Ask brokers upfront about their fees and what lenders they work with.

Unregulated in-person financing: loan brokers

Start a business: financial foundations for success

Predatory lending – a growing problem

• Alternative lenders have stepped in to

fill the void through high-cost, short term online funding options (approx. $3 billion). Operating in a largely unregulated space there has been an increase in predatory small business lending practices.

• Something had to be done to ensure

transparency, fairness and accountability in small business financing.

$250K to $1 million $100K to $250K Under $100K

13% 22% 8%

Since the recession, there has been a steady decline in small business bank lending. Small Business Borrowers’ Bill of Rights

The funding landscape:

• SBA-backed loans
• Community development financial institutions (CDFIs)
• Community banks & credit unions
• Alternative online lenders

Small Business Borrowers’ Bill of Rights Resources, tools and how to get involved

Topics of discussion

Small Business Borrowers’ Bill of Rights

Small Business Borrowers’ Bill of Rights

The six principles

www.responsiblebusinesslending.org

• 1. The Right to Transparent Pricing and Terms
• 2. The Right to Non-Abusive Products
• 3. The Right to Responsible Underwriting
• 4. The Right to Fair Treatment from Brokers
• 5. The Right to Inclusive Credit Access
• 6. The Right to Fair Collection Practices

Policy updates The funding landscape:

• SBA-backed loans
• Community development financial institutions (CDFIs)
• Community banks & credit unions
• Alternative online lenders

Small Business Borrowers’ Bill of Rights Resources, tools and how to get involved

Topics of discussion

COVID-19 resource portal

Find state and national daily resources, links to upcoming webinars and policy updates surrounding the COVID-19

• utbreak on our website.

Visit our online resource hub: www.smallbusinessmajority.org/covid-19-daily-updates-for-small-businesses Resources, tools and how to get involved

Venturize

Venturize.org is a free online resource hub for small business

• wners like you who need help

accessing tools and resources to grow their businesses. Venturize

• ffers unbiased information

about small business loans, retirement and healthcare.

Visit our online resource hub: www.Venturize.org/access-capital Resources, tools and how to get involved

MatchFinder

• A short set of questions will connect California

small businesses to lenders that prioritize supporting small businesses and offer more affordable terms than many traditional financial institutions.

• All lenders are our long-standing partners who

share our mission: to ensure small businesses can get affordable, responsible sources of capital to start, grow and sustain their enterprises.

matchfinder.venturize.org

Resources, tools and how to get involved

Become a small business spokesperson

Resources, tools and how to get involved

• We’re dedicated to ensuring that lawmakers and

the media hear from real small business owners about how they’re being impacted by COVID-19.

• Join our sign on1 campaign and call on Congress

to bail out Main Street.

• Share your story about how COVID-19 has

impacted your business by filling out our online form2.

1 Sign on campaign: https://go.smallbusinessmajority.org/covid-19-call-on-congress 2 Share your story form: https://go.smallbusinessmajority.org/tell-us-your-story

Contact Your Representative:

https://www.house.gov/representatives/find-your-representative

Contact Your Senator:

https://www.senate.gov/general/contact_information/senators_cfm.cfm

Contact your member of Congress

Resources, tools and how to get involved

Resources

GRANTS
 https://www.globalgiving.org/redbackpackfund/
 https://www.facebook.com/business/grants
 https://businessforall.helloalice.com/
 https://workforce.lacounty.gov/ - Opens April 8th (Webinar on April 7th at 1:30 pm) LOCAL ECONOMIC DEVELOPMENT OFFICE
 City/County/State
 
 FIND RESPONSIBLE LENDERS
 https://ofn.org/cdfi-locator
 www.venturize.org 
 https://www.connect2capital.com/
 SBA Lender Match FREE TECHNICAL ASSISTANCE 
 Los Angeles - SIPA & API Small Business Program (Women’s Business Center – partly funded by SBA)
 Nationwide – SBDC, SCORE, WBC, Pacific Community Ventures

Small Business Funding Opportunities April 7, 2020 12 pm – 1 pm PST

• Questions

WEBCAST

Mon, April 6 (12:00 PM PT) – “Commercial Real Estate and Rent Relief”

• Lease obligations
• Rent relief
• Communicating with landlord and lender

Tue, April 7 (12:00 PM PT) – “Small Business Funding Opportunities”

• SBA Disaster Loans/CARES ACT
• PPP (Payroll Protection Program)
• Emergency funding available now

Wed, April 8 (12:00 PM PT) – “Everything Employment”

• Current unemployment
• Current employer (funding eligibility)
• Freelance entrepreneurs

Thur, April 9 (12:00 PM PT) – “Essential PR Tips for the Pandemic”

• The 3 Basic “Be”s – Be relevant, be helpful – or be quiet!
• Being heard above the noise
• Being innovative

Fri, April 10 (12:00 PM PT) – “Not Business As Usual: Pivot & Recovery”

• Business strategies amidst the pandemic
• Internet presence and Up-volving your business online
• Lead generation and keep consumers engaged

Small Business Webcast Series: Survival and Success

PRESENTERS

Anna Marie Cruz

Western Regional Manager Initiative for a Competitive Inner City amcruz@icic.org 562-631-7937 www.icic.org www.linkedin.com/in/annamariecruz www.entrepinayship.com

Emma Kloppenburg

Program Officer LISC LA | Local Initiatives Support Corporation ekloppenburg@lisc.org 213-250-9550 x141 www.lisc.org/los-angeles

Monica Guevara

Loan Officer CDC Small Business Finance mguevara@cdcloans.com 818-237-7143 www.cdcloans.com

Lois Pagaspas Klavir

Vice President | Business Relationship Manager III Chase Bank lois.p.klavir@jpmorgan.com 818-538-9138 www.jpmorgan.com https://www.linkedin.com/in/loispk www.faccgla.org

Geraldine “Geri” Sanchez Aglipay

National Women's Entrepreneurship Manager Senior Outreach Manager, Midwest and Greater Chicago Small Business Majority gaglipay@smallbusinessmajority.org 312-487-1899 www.smallbusinessmajority.org https://www.linkedin.com/in/gaglipay

PARTNERS

CONTACT US

3200 W. Temple St. Los Angeles, CA 90026 (213) 382-1819 www.sipacares.org hello@sipacares.org @sipacares @sipacares