The SBA’s Economic Injury Disaster Loan program provides vital economic support to small businesses during this unprecedented and challenging time.
We have created a task force who will develop SBA-specific guidance and resources that you can access on this page as new alerts and information becomes available.
SBA LOANS & RESOURCES ALERTS
The U.S. Small Business Administration (SBA) and Treasury Department recently released a sample PPP Loan Forgiveness Application that answers many of the questions surrounding the
Partner Compensation Is Now Included in Latest SBA Update, Partnerships May Be Eligible to Increase Their PPP Loan
On May 13, 2020, the SBA released an Interim Final Rule (IFR) on Loan Increases relating specifically to compensation of partners in a partnership. The
On May 13th, the Small Business Administration (SBA) issued new guidance that provides much needed clarity around the “good faith” certification for Paycheck Protection Plan
On April 30th, The Federal Reserve Board on Thursday announced it is expanding the scope and eligibility for the Main Street Lending Program (MSLP), which
Businesses that have their Paycheck Protection Program (PPP) loans forgiven may not get valuable tax breaks on their expenses, according to new guidance from the
An additional $310 billion Paycheck Protection Program funding is now available, and the Small Business Administration will resume accepting PPP loan applications on Monday, April
FREQUENTLY ASKED QUESTIONS
The “Paycheck Protection Program” (PPP) provides short-term cash flow assistance to small businesses impacted by COVID-19. This program was finalized as part of the CARES Act – and an overview of the PPP is available here.
Loans are made by lenders certified by the Small Business Administration (SBA) and guaranteed by the federal government. The SBA will administer the PPP.
Lenders are preparing and readying resources to support small businesses within the provisions of the PPP. Lurie has numerous connections and trusted business leaders in this area we can refer you to.
For more information, ask your Lurie advisor or contact us.
The Small Business Administration (SBA), in consultation with the Department of the Treasury, intends to provide timely additional guidance to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP). The Treasury Department has created a link to their own FAQ document, that will be updated on a regular basis.
For more resources and official guidance, go to The CARES Act | Assistance for Small Businesses page.
Here is a link to the top FAQs related to the CARES Act SBA 7(a) Loans.
EIDL: Applicants can have an existing SBA Disaster loan, or other loan and still qualify, but the loans cannot be consolidated
PPP: Applicants can have existing loans, but may not have any outstanding loan or pending application for a loan under Section 7(a) SBA loan for the same purpose and duplicative amounts. Check with your bank before applying for an EIDL in addition to the PPP on or after April 3, 2020.
Yes, interest will accrue during the deferral period.
No, only owners with greater than 20% ownership.
Unfortunately, cyber criminals follow headlines and fraud increases during economic and financial distress. You need to remain vigilant to avoid phishing schemes designed to plant malware or ransomware. Follow the advice of experts: (1) use trusted, legitimate sources for COVID-19 information such as searching for official government websites, (2) avoid clicking on links within emails, and (3) do not reveal personal information or respond to requests.
Here is a recent news story, highlighting what a phishing scheme targeting Minnesota business owners looks like.
Our team has found a number of additional relief resources, which we have organized here. This list is being compiled in real-time as we uncover additional programs, so please check back. We encourage you to be cautious when working with outside parties and providing them your personal or business information. See our disclaimer at the bottom of this web page for more information.
Some states are offering additional relief, and it is advised to check your state’s official website. For example, Minnesota’s Department of Employment and Economic Development (DEED) is providing emergency loans to small businesses.
The Minnesota Initiative Foundation is offering assistance to childcare providers who meet the following criteria:
- Applicant must be a licensed family- or center-based child care provider.
- Applicant must be located within a Greater Minnesota community. Find your Minnesota Initiative Foundation to apply to the correct program.
- Applicant must serve the children of essential and emergency workers, as defined through executive order by Minnesota Governor Tim Walz. See the list of personnel.
- Grant amounts to qualifying applicants will be determined by your local Minnesota Initiative Foundation.
For non-profits in Minnesota, Wisconsin, North Dakota and Montana, Otto Bremer Turst is offering assistance, here.
Minority Business Development Agency (MBDA) is providing financial consulting and loan programs for companies that meet the following criteria:
- Businesses must be owned and controlled by entrepreneurs of color
- Loan clients are encouraged to work with MEDA business consultants
- The Program works in participation with your existing bank
- Minimum loan amount is $25,000
- Loans more than $400,000 require a higher bank participation
The Minnesota Department of Veterans Affairs is accepting applications for a new program for Minnesota Veterans who have been financially impacted by the COVID-19 pandemic. MDVA will be awarding one-time financial relief grants in the amount of $1,000. Eligible Applicants must be:
- A Veteran as defined by MN Statute 197.447, or the surviving spouse (who has not remarried) of a deceased veteran, and
- A Minnesota Resident, and 3. Have been negatively financially impacted by COVID-19
Funding is available for both Disaster Relief Grants and Special Needs Grants. Both grant applications may be submitted through your County Veterans Service Officer. The Disaster Relief Grant may also be submitted directly online by a Veteran or surviving spouse.
The National Restaurant Association is offering funds to restaurant and food service employees who can demonstrate that they:
- Worked on a part- or full-time basis in the restaurant industry for at least 90 days in the past year; and
- Have had a primary source of income in the restaurant industry for the last year; and
- Have experienced a decrease in needed wages or loss of job on or after March 10, 2020 which these grant funds will help offset; and
- Live in the United States, an overseas U.S. military base, or any U.S. territory; and
- Are over the age of legal majority in their in their U.S. state or territory.
One-time grants are for short-term COVID-19 related hardships in paying any of the following expenses only:
- Home rent or mortgage
- Car payments or transportation costs
- Utility bills
- Student loan payments
- Child care
- Medical bills
Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses in more than 30 countries.To be eligible to apply, you must:
- Have between 2 and 50 employees
- Have been in business for over a year
- Have experienced challenges from COVID-19
- Be in or near a location where Facebook operates
Disclaimer: Team Lurie is diligently reviewing the latest news, adding resources and supplying links to third party websites. These links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by the Lurie LLP of any of the services of government agencies, organizations or businesses. Lurie LLP bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.
For Questions on SBA, Small Business Guidance & Loan Resources:
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