Sawyer County Covid-19 Local Recovery Webinar With Andy Donahue, - - PowerPoint PPT Presentation

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,

• r 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!!!!