COVID-19 Update & Recovery Resources for Your Small Business
Today, President Trump signed the “Phase 3.5” stimulus package, boosting funding for the SBA loan programs, including $320 billion in new funding for the Paycheck Protection Program and $60 billion in disaster loans and grants through the EIDL program. We anticipate that the funding for these programs will go quickly, so be aware of the following:
What does this mean if you haven’t applied yet?
If you are considering applying, we strongly encourage you to do so as quickly as possible once the SBA reopens applications again early next week. Again, we anticipate funding for these programs will go quickly so we encourage you to use this time to prepare to apply. For the PPP program, we encourage you to go to your local bank who you have a business relationship with to inquire about applying for the program. Previously, 1,500 banks were participating. That has since increased to more than 5,000 banks, so if your bank wasn’t previously participating they may be now. To find an eligible lender near you, click here.
For the applications (once they are available), required supporting documentation, more information, and how we can help, visit our website.
Need help? Our team of disaster specialists is available to provide confidential, no-cost consulting and direction to help you assess and prepare disaster loan applications and assist with other post-disaster challenges. Contact the Florida SBDC office nearest you to learn more.
What does this mean if you have applied and not heard back?
For the PPP program: Check with your lender on whether or not reapplication is necessary. Your lender may also be able to tell you if they received a loan origination number from the SBA, which would mean that your application was processed prior to the funds expiring.
For the EIDL loan and EIDL advance: Please contact the SBA at 1-800-659-2955 (TTY: 1-800-877-8339) or disastercustomerservice@sba.
SBA Issues PPP Guidance for Self-Employed Individuals
SBA recently issued additional guidance for self-employed (no employees) businesses to calculate payroll as part of the PPP program. If you have no employees, the following methodology should be used to calculate your maximum loan amount:
- Step 1: Find your 2019 IRS Form 1040 Schedule C line 31 net profit amount (if you have not yet filed a 2019 return, fill it out and compute the value). If this amount is over $100,000, reduce it to $100,000. If this amount is zero or less, you are not eligible for a PPP loan.
- Step 2: Calculate the average monthly net profit amount (divide the amount from Step 1 by 12).
- Step 3: Multiply the average monthly net profit amount from Step 2 by 2.5.
- Step 4: Add the outstanding amount of any Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).
Regardless of whether you have filed a 2019 tax return with the IRS, you must provide the 2019 Form 1040 Schedule C with your PPP loan application to substantiate the applied-for PPP loan amount and a 2019 IRS Form 1099-MISC detailing nonemployee compensation received (box 7), invoice, bank statement, or book of record that establishes you are self-employed. You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020.
For additional guidance, visit our website.
Billions in Funding Awarded to Florida Businesses
Good news! Before a lapse in appropriation occurred for the PPP and EIDL loan programs, Florida businesses received billions in disaster loans. Please find a breakdown below:
- PPP: 88,997 businesses in Florida secured nearly $18 billion ($17,863,199,837) of the $349 billion in loans under the PPP. See this recap of loan approvals for PPP loans from the SBA.
- EIDL: 2,098 Florida businesses received $383 million in EIDL loans. For full list, click here.
- EIDL Advance: 68,130 Florida businesses received more than $272 million in EIDL emergency grants. For full list, click here.
*Note: At this time, a breakdown by county is not available. We have inquired with our partners at the SBA for this information.
SalesForce Care Small Business Grant Now Available
As part of Salesforce’s commitment to small businesses and giving back to the community, Salesforce is partnering with Ureeka to offer eligible small businesses the opportunity to receive a $10,000 grant to help them through the COVID-19 outbreak. Applications for eligible businesses in Florida start TODAY and you will have one week to apply! Click here to see if you are eligible and to apply.
Visit our website for a list of other grant programs you may be eligible for, including the Facebook Small Business Grants Program and the US Chamber Save Small Business Fund.
COVID-19 Small Business Guide Available
Please be aware that we recently developed a special guide for small businesses to better understand the disaster loans available through the CARES Act.
The guide offers a thorough explanation of each loan program, including eligibility, use of proceeds, (for the PPP) payroll calculations, and forgiveness information.
The guide also includes advice for you to do to help your business stay afloat.
Have questions? Need help? We’re here for you.
As during any disaster, the Florida SBDC is here to help you recover. We encourage you to contact your local Florida SBDC for no-cost, confidential professional business consulting from one of our certified professional business consultants.
Our consultants can help you understand resources available, ensure your eligibility, help you submit your application, and navigate other post-disaster challenges. We have more than 40 offices across the state to serve you. Please be aware that due to the coronavirus, all offices are operating remotely and leveraging phone or video conferencing for consultations until further notice.
To learn more about available disaster relief and for more information on how we can assist you, please visit us at www.FloridaSBDC.org.
Should you have any questions, please do not hesitate to contact us at (850) 898-3479 or toll-free at (866) 737-7232.
Best regards,
Michael W. Myhre, CEO
Florida SBDC Network
