gradient

Small Business Administration SBA Disaster Loans Information

Small Business Administration SBA Disaster Loans

Update April 1, 2020

SBA Economic Injury Disaster Loan (EIDL) Program:

Here is the link to apply for the SBA EIDL loan program.  https://wisconsinsbdc.org/services/covid-19/disasterloans/     Go to the link and click on the blue (Apply Online) button.  Indications that we from the SBA today regarding the Disaster loan program is the SBA is likely to start sending the $10,000 grant advance before they process the EIDL loan applications and that you would be able to keep the grant money even if you are not eligible for a loan.  For these reasons, if you have not already done so and need the help please consider applying for the EIDL today.  The process has been streamlined so only completing the application is necessary.     Be sure to check the box on the application that you want the $10,000 Advance Grant.

Update – March 30, 2020

SBA Economic Disaster Injury Loan

Last week Friday in my email we talked about the SBA streamlining the application process.   Over the weekend they made further improvements to the application website.   New this weekend the SBA added that if you are approved for an EIDL loan you will now automatically be awarded a $10,000 EIDL grant.  Application for the grant is automatic when you apply for an EIDL loan.  Don’t worry if you applied for the EIDL last week as the SBA will include you for grant award too if you get an EIDL loan.  No need to apply again! 

The only forms you need to complete for the SBA EIDL application are the following:

Corporations and LLC’s

  1. Economic Injury Disaster Loan Supporting Information (Form P-019)
  2. Request for Transcript of Tax Return (IRS Form 4506-T)

Then go online and complete the Business Loan Application (Form 5) (en Español)

Sole Proprietors

  1. Economic Injury Disaster Loan Supporting Information (Form P-019)
  2. Request for Transcript of Tax Return (IRS Form 4506-T)

Then go online and complete the Home or Sole Proprietor Loan Application (SBA Form 5C) 

Download the two  forms from this email.  Prepare them and then save to your desktop.  Then go to the SBA application site and upload these when you apply.  While the SBA application process is not initially asking now for IRS Form 4506-T, we are recommending you complete it and submit it as the SBA has told us that it will probably be the form they will be requesting most so submitting it right away will keep your application moving forward.

Many of you will be able to work through the application on your own and I recommend you attempt to complete the application first.  If you run into an issue however and need assistance or have questions the SBDC is here to help.  To apply for the loan and/or request SBDC assistance you need to go to the link below.

  https://wisconsinsbdc.org/services/covid-19/disasterloans/

 

  1. SBA Express Disaster Bridge Loans

There have been no changes to the SBA  Express Bridge Loan Pilot Program  which was announced last week and allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. 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 loans or used to bridge the gap while applying for a direct SBA EDIL.     If a small business has an urgent need for cash while waiting for decision and disbursement on SBA EDIL, they may qualify for an SBA Express Disaster Bridge Loan.    If you go to the link and view the PDF it has specific details on the loans.    I recommend you tell clients about this option.

Terms

o    Up to $25,000

o    Fast turnaround

o    Will be repaid in full or in part by proceeds from the EIDL loan

o    These Express loans carry a higher interest rate typically set by the lender.

o    Must work directly with an SBA Express Lender bank to apply.

o    Here is the most current list of banks I could find who are SBA Express Loan lenders in Wisconsin.   It is from October 2018:   Clients should confirm with their banks.

Link:   Wisconsin SBA Express Loan Lenders

On Saturday March 21 the Small Business Administration (SBA) declared all of the counties in Wisconsin an SBA Economic Disaster.   The SBA is now accepting applications for disaster assistance loans for small businesses impacted by COVID-19.  Disaster assistance loans will be offered up to $2M. These loans are working capital loans designed to sustain your business in the way it could have existed if the disaster had not occurred (assessing your ability to pay accounts payable, payroll, paying fixed debt, and other operating expenses). These loans are not intended to be for equipment, expansion or to cover past lost profits or make up for an already struggling business before the disaster.  When you submit the application the SBA will determine the loan amount you are eligible to receive

 

The SBA is offering daily webinars through March 28th at 10 a.m. and 2 p.m. to help answer your questions about the application process.   Click on the times to register.  The webinars provide an overview of the Economic Injury Disaster Loans that are available to Wisconsin small businesses and private, non-profits. Information included in each webinar:

 

• Program eligibility

• Use of proceeds

• Terms

• Filing requirements

• Additional small business resources

To Apply and/or Get Assistance From SBDC

Many of you will be able to work through the application on your own.  However, if you need assistance or have questions the SBDC is here to help.  To apply for the loan, review common FAQ’s  and/or request SBDC assistance you need to go to the link below.

 https://wisconsinsbdc.org/services/covid-19/disasterloans/

List of Materials to Gather Now

If you seek SBDC assistance, please review the forms below and gather the information requested in these forms.  The SBDC is handling requests in the order in which they are received.    You can help us serve you by taking the action we request you to complete.

These are all links to the major information forms online in PDF that you can edit and save.  When you apply for the loan you will need this information to complete the application.   Having the information at your fingertips when the SBDC assists you will speed the process.

 

·         Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates.

·         Complete copies of the most recent Federal Income Tax Return.

·         Schedule of Liabilities (SBA Form 2202).

·         Personal Financial Statement (SBA Form 413).

·         Profit and loss statements

·         Monthly sales figures (SBA Form 1368)

  • Contact information and social security numbers for all applicant/ 20% or more owners.
  • Employer Identification Number (EIN) for business applicants

Wisconsin Follows Federal Government, Extends Tax Deadline

Late last week, the federal government announced that tax deadlines were extended. This extension has now been applied to Wisconsin state taxes as well – automatically extending the deadlines to July 15 and waiving interest and penalties for taxpayers due to a President-declared disaster.

This relief is solely for income tax payments and does not require tax filers to file extension forms to be eligible for the new due date.

 

Wisconsin’s Shelter-In-Place: What Businesses are Essential?

Governor Tony Evers has now issued a #SaferAtHome order, which is functionally a Shelter in Place Order like the ones we have seen in New York City, California, and Illinois over the last week.

In a Twitter chain, the Governor expressed that “I know this has been difficult and has disrupted the lives of people across our state. That’s why issuing a #SaferAtHome order isn’t something I thought we’d have to do, and it’s not something I take lightly. But here’s the bottom line: folks need to start taking this seriously.” He noted that includes the closure of all “non-essential business statewide.”

The SBDC office has had several calls and emails today asking us what is an “essential business?”    While Governor Evers is expected to provide more details about what businesses are considered “essential” tomorrow (Tuesday, March 24, 2020), he has so far defined essential employees as “workers providing essential care or services in our communities… That includes folks like healthcare professionals, grocers, family caregivers, among other people whose work is critical for folks across our state.”  Beyond that description that is all that the SBDC has received.

You can also monitor the Wisconsin SBDC website at https://wisconsinsbdc.org/  .

Testimonials

“I was born and raised in Ladysmith, Wisconsin. After high school, I took off, went to college in the Twin Cities, and traveled to many parts of the world like Tanzania, Ecuador, Mexico, the UK, and several US states. I moved to a small beach town in Florida for awhile after college but somehow found myself thinking about my hometown. After exploring parts of the world, I moved back to Ladysmith and found peace in the comfort and familiarity. It’s awesome being back home and seeing people from different generations come together and work towards making our small town a great place to live. I love going to local businesses and seeing many people I know, the live music opportunities at several of the local establishments, and the plethora of outdoor activities in nature. You can always venture out and explore the world, but there’s just something about that friendly small town vibe that keeps bringing me back home.”

McKenzie Morgan
Rusk County Resident

Sign up for the enewsletter

ga('require', 'displayfeatures');