REGISTER for a FREE live CORONA WEBINAR with Q&A July 16 & July 30

FLASH - SBA EIDL LOANS ARE NOW CLOSED AGAIN

SCORE IS HERE TO ASSIST YOU THROUGH THE UNPRECENTED CHALLENGES POSED BY THE PANDEMIC.

Visit the SCORE Corona Hub page for practical advice on the loan programs and transition to reopening. This page contains multiple links to valuable information on both PPP and EIDL loans.​

Information on the implementation of the CARES act (EIDL and PPP) available at these links

Additional resources when planning your company policy, procedures, and training. 

Keep detailed notes as proof of your planning and implementation for liability reasons.   

REFER PPP INQUIRIES TO YOUR BANK OR THE SBA Disaster Assistance Customer Service Center (for EIDL) at 1-800-659-2955 or e-mail disastercustomerservice@sba.gov.

The CARES Act is a complex subject. You are advised to consult with an attorney, CPA, or financial advisor with respect to your specific circumstances. SCORE is an independent non-profit resource partner with the U.S. Small Business Administration.

 

FREE live CORONA WEBINAR with Q&A available.    Details of all SCORE Dallas webinars are at the SCORE Dallas page.

 

PPP Forgiveness 5 Step guide (AICPA) (Must read advice)

SLIDES - Most recent SCORE Dallas COVID Webinar - (download slides)

NEXT FREE  LIVE CORONA WEBINAR 10.00 AM Thursday, July 16 

Webinar FAQ 6/04/2020 & 7/02/20

Protection Program Documents

Treasury Dept- PPP Fact sheet (pdf)

Economic Injury Disaster Loan (EIDL)

SBA site to apply for the EIDL loan • www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources  Telephone 800-659-2955
• Emergency EIDL Grants
• Part of the EIDL loan application process
• Up to $10,000
• Made available within 3 days of acceptance of loan submittal by SBA
• DOES NOT HAVE TO BE REPAID

SBA will review the following for loan acceptance:

• Credit
• Repayment abilities
• SBA Case Manager may ask for additional information before final approval of the
loan after acceptance of your application by the SBA

• $2M limit per business, even those that have multiple locations, it will still
probably be a $2M limit

EIDL – Other Considerations
•No obligation or penalties if you do not take the EIDL loan
•After receiving the initial EIDL loan you can ask for additional funds based on providing additional documentation
•If refused for an EIDL loan you can reapply within 6 months of the original application
•How is the EIDL loan amount calculated??
•Based on a review by the SBA Case Manager, for your loan application, reviewing the financial information you have provided

Paycheck Protection Program (PPP)

– Changes June 2020 (pending as at 6/04/20) 

  • Minimum percentage spent on payroll reduced from 75% to 60%

  • Wite off period extended from 8 to 24 weeks

– Loan Amount Calculation - Amount will be based on the following

•Number of full-time and part-time employees
•Coverage period 2/15/20 – 6/30/20
•Based on average total monthly payroll costs incurred during the one-year period before the date of the loan
•Could receive up to 2.5 times its average monthly payroll costs subject to a $10 million limitation
•Not included in the calculation:
•individual employee compensation over $100,000;
•payroll and income taxes;
•compensation for an employee with a principal place of residence outside the United States; and
•qualified sick leave or family leave wages for which a business will receive a credit under the Families First Coronavirus Response Act.

Paycheck Protection Loan (PPP) Forgiveness Criteria

•Amount of forgiveness cannot exceed the principal amount of the loan, but may equal up to a business’s costs during the 8 weeks following the date of the loan’s origination for the following categories:
•Payroll costs;
•Interest on real or personal property mortgage obligations in existence before February 15, 2020 and incurred in the ordinary course;
•Rent under a lease agreement in force before February 15, 2020; and
•Utility payments, including electricity, gas, water, transportation, telephone or internet, for which service began before February 15, 2020

There are certain limits on the amount of forgiveness for which the loan will not be forgiven, which include the following:

•Amounts in excess of the principal on the loan will not be forgiven.
•Forgiveness will be reduced proportionately by any reduction in employees retained compared to either (i) the prior year, or (ii) the period of January 1, 2020, thru February 29, 2020 (measured based on average employees per month).
•Forgiveness will be reduced proportionately by any reduction in pay of any employee beyond 25% of their prior year compensation (measured from the most recent full quarter prior to the origination date of the loan).
•Payroll costs eligible for forgiveness do not include compensation paid to employees in excess of $100,000 annually

If the business has “tipped employees,” the business may receive forgiveness for additional wages paid to those employees.

•If borrowers re-hire workers that have already been laid off due to COVID-19 (within 30 days of the enactment of the CARES Act), they will not be penalized or have the loan forgiveness reduced by any reduction of employees or reduction in payments to employees, so long as the workers are re-hired on or before June 30, 2020.

•Any loan amounts that are not forgiven at the end of one year are carried forward for a max term of 10 years at a maximum interest rate of 4%, and the 100% loan guarantee remains during the term.

•Businesses that qualify for a small business loan under section 7(a) of the Small Business may qualify for loan forgiveness on portions of their SBA disaster loan.
•The borrowers that qualify for small business loans will be eligible to have only those portions of their loans forgiven for the amounts spent during an 8-week period after the origination date of the loan for payments related to the following expenses:
•Payroll costs
•Interest payments on a mortgage if the mortgage was incurred prior to February 15, 2020 (does not include the principal or prepayment)
•Rent payments under a lease that was in effect prior to February 15, 2020
•Utility payments made on utility services if such services were in use prior to February 15, 2020

Paycheck Protection Program (PPP)- Other Considerations

•A business obtaining a loan through the Paycheck Protection Program will not be able to use the payroll tax credits available under the Families First Coronavirus Act for employee retention or the deferral of employer-side social security payroll taxes under the CARES Act.
•You can apply for both an EIDL and Paycheck Protection Loan but the funds must be used for covering separate company operating costs. No double-dipping.
•The U.S. Treasury Department has said (as of March 30, 2020) that the Paycheck Protection Program (PPP) should be ready for small business by this Friday, April 3.

 

Texas Workforce Commission Website

Information and Documents required to submit an application for unemployment benefits

  • Last employer's business name and address
  • First and last dates (month, day and year) you worked for your last employer
  • Number of hours worked and pay rate if you worked this week (including Sunday)
  • Information related to your normal wage
  • Alien Registration Number (if not a U.S. citizen or national)

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