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

Best Practices for Getting a PPP Loan

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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

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PPP Policy & Funding Overview

• Overview: Funds to pay up to 8 weeks of payroll

costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities, but 75% of forgiven amount must be on payroll. Loan payments deferred for six months. No collateral or personal guarantees required. Neither the government nor lenders will charge small businesses any fees.

• Forgiveness: Based on the employer maintaining or

quickly rehiring employees and maintaining salary

• levels. Forgiveness reduced if full-time headcount

declines, or if salaries and wages decrease.

• Eligibility: Under 500 employees; SBA Franchise

Directory; NAICS 72 (hotels/restaurants)

FUNDING

• CARES: $349 billion
• PPP & Health Care Enhancement Act: $310B



Additional $250B for current program



$60B set aside for depository and lending institutions such as community banks, CDFI’s, etc. with assets under $50B

 $30B is for lending institutions between $10-

$50B in assets

 $30B is for lending institutions with less than

$10B in assets

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SBA Funding Data

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IFA Survey Data

• 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.

Responses from 409 franchise owners between April 14 – 20

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Media v. Reality

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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

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SBA’s Paycheck Protection Program (PPP)

Helpful Links

 Treasury’s Assistance for Small Businesses  SBA Paycheck Protection Program  SBA Economic Injury Disaster Loan

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Where Can I Find a CDFI?

• To find a CDFI near you,

access the CDFI Locator.

• fn.org/cdfi-locator
• Shows OFN members

serving your community

• Search by CDFI type,

states served or sector

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Where Can I Find a CDFI?

• Use the CDFI Coverage

Map

• fn.org/cdfi-coverage-map
• Enter your address to see

CDFI located in or lending in your community

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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

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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

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Jeffrey Tews Franchisee, Brightstar Care

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John Matta, Dunkin’ Donuts Franchisee & Chairman, Coalition of Franchisee Associations

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Questions?

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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
• n legislation affecting the future of franchising
• For the CARES Act alone, FANs sent over 35,000 letters to elected
• fficials
• 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