PPP Loan Forgiveness + PPP Flexibility Act Update Facts

August 10, 2021June 22, 2020 by fasnew@fasnew@66541.6486513

PPP Loan Forgiveness PPP Flexibility Act Facts

In this video, FAS’ co-owner, Cristy Fontanilla, discusses facts that you need to know about the PPP Loan Forgiveness and the updates after the PPP Flexibility Act was signed.

0:49 What is the Paycheck Protection Program?

1:31 Criteria for Loan Forgiveness (original criteria before PPP Flexibility Act was Signed)

4:40 How PPP Payroll Cost can impact your non-payroll costs (Demo Calculation)

7:30 What are the eligible payroll costs PPP Forgiveness?

9:35 What is the Covered Period? (original guidelines before PPP Flexibility Act was Signed)

12:03 What is the Reference Period?

13:30 What are the Safe Harbor guidelines?

14:50 The Loan Forgiveness Process

16:33 Supporting Documents for Payroll Cost

17:08 Supporting Documents for FTE

17: 27 What are the eligible nonpayroll costs PPP Forgiveness?

18:18 Supporting Documents for Non-Payroll Cost

18:34 Certifications on Loan forgiveness Application Form

19:58 June 5th Updates – PPP Flexibility Act Changes

How to use your EIDL loan? | EIDL Overview & FAQs

August 10, 2021June 22, 2020 by fasnew@fasnew@66541.6486513

How to use your EIDL loan? | EIDL Overview, Eligible & Ineligible Expenses, EIDL FAQs

Need more clarifications about SBA’s Economic Injury Disaster Loan? Let’s go over it together! In this video, FAS’ co-owner, Cristy Fontanilla, discusses EIDL facts and answer some common FAQs about this SBA loan.

Watch this video on YouTube

2:08 What is EIDL?

3:11 Eligible Expenses

4:07 Loan Agreement (Interest Rate)

5:19 Amortization Calculation Demo

9:26 Loan Agreement (Collateral)

10:37 Loan Agreement (Requirements Relative to Collateral)

11:06 Loan Agreement (Use of Loan Proceeds)

12:23 Loan Agreement (Requirement for Use of Loan Proceeds and Receipts) (Answer questions “Can I use EIDL for relocation?” “Can I purchase equipment overseas?”)

14:05 Loan Agreement (Compensation From Other Sources)

16:16 Loan Agreement (Hazard Insurance)

16:33 Loan Agreement (Books and Records)

18:13 Recommendation: Keep EIDL proceeds on a separate bank account

18:57 Loan Agreement (Limits on Distribution of Assets) (Answer questions “Can I take draws/distribution/bonuses to pay myself/shareholder/partners?”)

20:05 Loan Agreement (Certifications)

20:47 Loan Agreement (Civil and Criminal Penalties) (Answer question “What happens if I misused the EIDL funds?)

21:24 Eligible Expenses (recap)

22:13 Ineligible Expenses (detailed)

26:25 Ineligible Expenses (Summarized)

SBA Express Bridge Loans – Coronavirus Relief Option

August 9, 2021April 2, 2020 by fasnew@fasnew@66541.6486513

SBA Express Bridge Loans Enables small businesses that currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.

Express Bridge Loan Pilot Program allows small businesses that currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for a decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.

Terms

Up to $25,000
Fast turnaround
Will be repaid in full or in part by proceeds from the EIDL loan

Source: https://www.sba.gov/

SBA Debt Relief – Coronavirus Relief Option

August 9, 2021April 2, 2020 by fasnew@fasnew@66541.6486513

Source: https://www.sba.gov/

Overview

As part of SBA’s debt relief efforts,

The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.

Additional Debt Relief

For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.

What does an “automatic deferral” mean to borrowers?

Interest will continue to accrue on the loan.
1201 monthly payment notices will continue to be mailed out which will reflect the loan is deferred and no payment is due.
The deferment will NOT cancel any established Preauthorized Debit (PAD) or recurring payments on your loan. Borrowers that have established a PAD through Pay.Gov or an OnLine Bill Pay Service are responsible for canceling these recurring payments. Borrowers that had SBA establish a PAD through Pay.gov will have to contact their SBA servicing office to cancel the PAD.
Borrowers preferring to continue making regular payments during the deferment period may continue remitting payments during the deferment period. SBA will apply those payments normally as if there was no deferment.
After this automatic deferment period, borrowers will be required to resume making regular principal and interest payments. Borrowers that cancelled recurring payments will need to reestablish the recurring payment.

Economic Injury Disaster Loans and Loan Advance – Coronavirus Relief Option

August 10, 2021April 2, 2020 by fasnew@fasnew@66541.6486513

Economic Injury Disaster Loans and Loan Advance COVID Relief

Source: https://www.sba.gov/

Overview

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.

Eligibility

The SBA’s Economic Injury Disaster Loan provides vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic.

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19.

Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.

The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid.

Frequently Asked Questions for Faith-Based Organizations Participating in the Paycheck Protection Program and the Economic Injury Disaster Loan Program

To apply for a COVID-19 Economic Injury Disaster Loan and loan advance, click here.

Paycheck Protection Program – Coronavirus Relief Option

August 1, 2021April 1, 2020 by fasnew@fasnew@66541.6486513

Paycheck Protection Program COVID Relief

Loan Information

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

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.

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. You should consult with your local lender as to whether it is participating in the program.

Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.

Frequently Asked Questions for Lenders and Borrowers

For affiliation rules applicable for the Paycheck Protection Program, click here.

The Interim Final Rule for Applicable Affiliation Rules for the Paycheck Protection Program information is being posted in advance of publication in the Federal Register. The official version will appear in the Federal Register.

Frequently Asked Questions for Faith-Based Organizations Participating in the Paycheck Protection Program and Economic Injury Disaster Loan Program

Source: https://www.sba.gov/

Who Can Apply

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

Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
- 500 employees, or
- That meets the SBA industry size standard if more than 500
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
Sole proprietors, independent contractors, and self-employed persons

Loan Details and Forgiveness

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

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.

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

If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you when you apply with a lender.