Coronavirus Emergency Loans Small Business Guide and Checklist
The Coronavirus Aid, Relief, and Economic Security (CARES) Act will help small businesses during the pandemic and economic downturn when it comes to keeping their employees. With a total of $350 billion ready to be dispersed, many small businesses have questions of their own to be answered. Thanks to the U.S Chamber of Commerce, here is a flyer with questions you may be asking and what you need to know. Click here to read the checklist.
Disaster Field Operations Center West
Release Date: April 6, 2020 |
Release Number: TX 16116-02;
TX 16123-02; TX 16128-02; TX 16130-02
Deadlines Approaching in Texas for
SBA Working Capital Loans Due to Adverse Weather Conditions
SACRAMENTO, Calif. – Director Tanya N. Garfield of the U.S. Small Business Administration’s Disaster Field Operations Center-West today reminded Texas small nonfarm businesses of the deadline dates to apply for an SBA federal disaster loan for economic injury. These low-interest loans are to offset economic losses because of reduced revenues caused by adverse weather conditions in the following primary counties.
According to Garfield, small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may apply for Economic Injury Disaster Loans of up to $2 million to help meet working capital needs caused by the disasters. “Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disasters’ impact,” said Garfield.
“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disasters and businesses directly impacted by the disasters. Economic injury assistance is available regardless of whether the applicant suffered any property damage,” Garfield added.
The interest rate is as low as 3.675 percent for businesses and 2.5 percent for private nonprofit organizations with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
By law, SBA makes Economic Injury Disaster Loans available when the U.S. Secretary of Agriculture designates an agricultural disaster. The Secretary declared declarations TX 16116 and TX 16123 on Sept. 9, 2019; declaration TX 16128 on Sept. 6, 2019; and declaration TX 16130 on Sept. 13, 2019.
Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency about the U.S. Department of Agriculture assistance made available by the Secretary’s declaration. However, in drought disasters nurseries are eligible for SBA disaster assistance.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
Governor Abbott, Goldman Sachs, LiftFund Announce $50 Million in Loans For Texas Small Businesses
April 13, 2020 | Austin, Texas | Press Release
Governor Greg Abbott today announced that Goldman Sachs and the LiftFund, along with other community development financial institutions (CDFIs), are partnering to provide $50 million in loans to small businesses in Texas that have been affected by COVID-19 as part of the Goldman Sachs 10,000 Small Businesses program. These loans, made through the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP), will primarily be used for payroll so that employees can continue to receive paychecks and small businesses can retain their employees and will be partially or wholly forgiven.
"Small businesses and their employees are at the heart of the Texas economy, and they need support during these difficult times,” said Governor Abbott. “These loans will help us revitalize our economy and restore Texans’ livelihoods as we respond to COVID-19. I thank Goldman Sachs and the LiftFund for providing this lifeline to Texas small businesses and their employees by providing them with the support they need to overcome the challenges posed by COVID-19. This partnership is an important first step in our journey to economic recovery in the state of Texas."
"We have seen first-hand the determination and resilience of small business owners in Texas, having worked alongside them for years through our 10,000 Small Businesses program," said John Waldron, President and Chief Operating Officer of Goldman Sachs. "Goldman Sachs understands that our communities and economy rely on small business and we are doing everything we can to support this vital engine of economic growth and employment."
Goldman Sachs will provide the capital as part of its $550 million commitment to COVID-19 relief, and LiftFund, alongside other CDFIs, will administer the funding to qualified small businesses. If all stipulations are met, small business can have their loans forgiven in full by the SBA. Business owners can apply for a PPP loan and find more information about the program on the LiftFund website.
The Governor was joined for the announcement by President and COO of Goldman Sachs John Waldron, President and CEO of LiftFund Janie Barrera. Also joining the Governor were Brent Reaves, owner of Smokey John’s Bar-B-Que in Dallas, Patricia and Clint Butler, owners of Coffeecionado Community Roasters in San Antonio, and Michele and Mitch Allen, owners of iRun Texas in San Antonio. The Butlers and Allens will be the first to benefit from this partnership to provide PPP loans in Texas.
LiftFund is a non-profit organization, headquartered in San Antonio, that helps small business owners with limited access to capital. The company offers small business loans and minority business loans for entrepreneurs. LiftFund partners with SBA lenders and other lending institutions to provide startup loans, SBA 504 Loans, and microloans in Texas, and throughout the South Eastern U.S. In 2018, LiftFund had 591 donors, 118 investors, 500 partners, and 100 employees.
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
Governor Abbott Announces Approval Of Emergency Designation For Small Business Disaster Loans From U.S. Small Business Administration
March 20, 2020 | Austin, Texas | Press Release
Governor Greg Abbott today announced that the U.S. Small Business Administration (SBA) has included the entire state of Texas in its Economic Injury Disaster Declaration and granted access to its Economic Injury Disaster Loan (EIDL) program, which will provide long-term, low-interest loans to qualifying businesses across the state. "Small businesses are the foundation of our state’s economy and they need all the help they can get as the ripple effects of COVID-19 impact their everyday operations," said Governor Abbott.
"Today’s decision by the U.S. Small Business Administration to make Economic Injury Disaster Loans available to qualifying small businesses across Texas is a vital lifeline for Texas small business owners who are doing their best to adapt to these trying times."
The Governor's request was driven by COVID-19-related economic losses across Texas related to major event cancellations, loss of walk-in customers, depletion of stock from suppliers, and client cancellations. Governor Abbott also commented on the SBA’s rapid turnaround to a request he made by letter just three days ago."
The overriding message of this time in history is that we are all in this together," said Governor Abbott. "From people responsibly remaining at home to protect themselves and their communities to the small businesses adapting to serve them, Texans are showing their willingness to serve the greater good and that’s why we’ll overcome this together. That’s what Texans do. We are not only Texas Strong, we are #TexasBizStrong."
Texas small businesses who believe they may be eligible for an SBA EIDL should visit www.sba.gov/disaster where they can directly apply for assistance. The online application is the fastest method to receive a decision about loan eligibility.
Quick facts to apply for the Small Business Administration’s Disaster Loan
Source: Mary Ann Moon, Prosper Economic Development
If you are needing the SBA Site for Information and an Application, click here: https://disasterloan.sba.gov/ela/
You may also access all forms at SBA.gov where they may be downloaded. You can also complete them as instructed and upload them to a provided DropBox.
Once your application is reviewed you will be assigned a Case Manager (CM) and this individual will be your point of contact; they can answer any questions you may have. If you call your CM and you are asked to leave a message, the CM will contact you within a reasonable amount of time.
It is suggested that forms be completed after peak hours. (Peak hours are between 6am and 9pm)
The regional Small Business Development Center (SBDC) has Advisors available to offer assistance and answer questions. They may be contacted at SBDC.nctc.edu, or 940-498-6470. If your call is not immediately answered, leave a message and a representative will return your call.
ALL businesses are encouraged to apply for assistance. If you presently have a SBA Loan you are NOT prohibited from receiving this assistance. It is completely different from any existing loans. These loans are also Federally guaranteed and are NOT issued or managed through local banks for lenders. There is no cost for application or processing.
- 3.75% for businesses, 30 year fixed rate, 1st payment deferred for 12 months
- 2.75% for non-profits, 30 year fixed rate, 1st payment deferred for 12 months
Loan Amounts/Collateral/Financial Information
- Small businesses are eligible for up to $25,000
- Large corporations or groups owned by a corporation are eligible for up to $2,000,000
- Requests for more than $25,000 will require collateral
- Insurance will be required for 80% of assigned collateral
- Financial statements will be required for the past 2 years for all loans
- A statement of personal liabilities will be required for all loans
- Revenue and expense itemization will be required for all loans
- A projection of damages up to 6 months will be required (this can be altered if the period of damages exceeds 6 months)
- Amendments to the application/request will be permitted for extension of damages
- Tax returns will not be required, rather a 4605-T form will be required allowing returns to be accessed
- If current financial statements are in good form, they may be attached to the application
- A loan amount may NOT be requested. The Award will be determined by financial statements and need.
*This assistance does not prohibit a business or non-profit from requesting payroll assistance. The entity may also apply for the employee program providing payroll support.
*If notified of an award/loan, estimated notification 4-5 weeks after accepted application, the recipient does not have to accept the award but must notify the SBA/SBDC Case Manager of decline.
ALL BUSINESSES ARE URGED TO APPLY!