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Seedcopa + SeedcoDE Business Assistance News Feed

Seedcopa + SeedcoDE will continue to update this news feed with new developments during the COVID-19 crisis. Be sure to refresh the page between visits. You can also sign up for our newsletter by emailing mshires@seedcopa.com

Update: April 8, 2020

New FAQs have been released by the U.S. Department of the Treasury regarding the Paycheck Protection Program. Here’s where to find today’s PPP FAQs. These will be updated periodically from this web page.

Update: April 7, 2020

There is word that disbursements of the Economic Injury Disaster Loan (EIDL) advance will begin this week, as the SBA works to process a very large number of requests. We’ll keep you posted.

Update: April 3, 2020

Changes were made to forms and program details on the Paycheck Protection Program (PPP) overnight. All current forms and the new “PPP Final Rule” can be found here.

Update: April 2, 2020

Although Seedcopa is not a direct lender of the Paycheck Protection Program (PPP), we want to be sure businesses across Pennsylvania and Delaware are up to date and ready with information to apply for loan programs.

While your bank or credit union may not request every one of these documents from you, based on their requirements, it will definitely help if you are ready for anything they may request.

Here’s THE LIST of important items – especially for PPP:

  • —2019 IRS Quarterly 940, 941 or 944 payroll tax reports
  • —Monthly Payroll Reports for 2019
  • —Payroll report must show the following for the time period above:
    Gross wages for each employee (including the officer(s) if paid W-2 wages)
    Paid time off for each employee
    Vacation pay for each employee
    Family medical leave pay for each employee
    And state and local taxes assessed on the employee’s compensation for each employee
  • —1099s for 2019 for independent contractors that would otherwise be an employee of your business. (Do NOT include 1099s for services)
  • —Documentation showing total of all health insurance premiums paid by the Company Owner under a group health plan. (Include all employees and the company owners)
  • —Document the sum of all retirement plan funding that was paid by the Company Owner. (Do not include funding that came from the employees out of their paycheck deferrals.) Include all employees, including company owners, 401K plans, Simple IRA, SEP IRAs
  • —Business entity documentation (e.g. Operating Agreement, Certificate of Organization, Bylaws, Articles of Incorporation)
  • —2017, 2018 and 2019 Business Tax Returns if applicable and 2019 internal financial statements if 2019 tax return is not filed
  • —2020 interim financial statements (balance sheet, income statement, accounts receivable aging and accounts payable aging)
  • —Debt schedule for operating business
  • —List of owners of the business if not included in tax return
  • —Copy of Driver’s License for signers of business. (This is likely for 20%+ owners)

Important Dates

Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

Where to Find the Forms

Now program details and application forms are available to get you rolling. You can access them directly from the Treasury Department here. Further information can be found on the SBA website.

This program is administered directly through an SBA Certified Lender or Federally Insured Financial Institution approved by the SBA. For a list of SBA-backed lenders in your area, please see page 29 of the SBA Resource Guide found here.

Update: April 1, 2020

The Paycheck Protection Program (PPP) under the newly created CARES Act, allows businesses to borrow up to 2.5 times their average monthly payroll. Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. Now program details and application forms are available to get you rolling. You can access them directly from the Treasury Department here. Further information can be found on the SBA website.

This program is administered directly through an SBA Certified Lender or Federally Insured Financial Institution approved by the SBA. For a list of SBA-backed lenders in your area, please see page 29 of the SBA Resource Guide found here.

Update: April 1, 2020

Big news on the SBA Debt Relief Program

If you have an existing SBA 7(a) loan, SBA 504 loan or micro loan, the SBA has announced it will cover all loan payments for the next six months, including principal, interest and fees. Borrowers will not need to do anything to take advantage of this. Seedcopa + SeedcoDE will work with the SBA to obtain payment

In addition: For new 7(a) loans issued prior to September 27, 2020, the SBA will pay the principal and interest.

In addition:  The 504 Loan Program Central Servicing Agent (CSA) has stated it will not apply an ACH debit to the borrower’s account to cover the loan payments due on April 1, 2020 for all 504 loans in regular servicing status. The SBA will pay the principal, interest and any associated fees that are owed on a 504 loan in a regular servicing status to the CSA within 30 days of April 1. The SBA will continue to make these loan payments to the CSA for the 6-month period beginning April 1, 2020.

Update: March 31, 2020

The Paycheck Protection Program (PPP) under the newly created CARES Act was approved Friday. It is not yet available, as the co-managers of the program (the U.S. Treasury and the U.S. Small Business Administration) work with their teams to interpret the federal statutes related to the program and develop an application process for borrowers. At this point, we believe the program will start with lending institutions who were already SBA lenders. Then they will look to authorize lending institutions who were not previously SBA lenders, as well as other organizations like Seedcopa + SeedcoDE.

Another important note: Please be aware of phishing & spamming that is fraudulently associated with PPP, where your personal information is requested or overnight approvals are promised. This is not legitimate.

Our take on the Paycheck Protection Program? We do believe the program has a good basis and will be able to help a lot of small businesses, especially with payroll and employees. Once additional guidance is received, we will be sure to share it.

Update: March 26, 2020

It’s an alphabet soup of federal & state loan opportunities this week. Here’s what’s still cooking… and what’s ready to serve.

Ready to Serve:
COVID-19 Working Capital Access (CWCA) 

NEW! The COVID-19 Working Capital Access (CWCA) Program has been approved with a $60 million allocation to assist small businesses in Pennsylvania. Applications opened yesterday. For access, check out the Chester County Economic Development Council’s resources here.

Ready to Serve: 
Economic Injury Disaster Loan (EIDL)

This is a federal program and SBA initiative that Pennsylvania and Delaware became eligible for last week. The program remains open (with slow periods due to the influx of applications). Here’s where to apply now.

Still Cooking: CARES Act 
(Coronavirus Aid, Relief, and Economic Security)

The U.S. Senate has passed a $2 Trillion coronavirus relief bill, which includes provisions to assist U.S. businesses. Now it moves to the House and White House for approval. Then we’ll receive instructions on how to offer programs to businesses across the region. We’ll keep you posted.

FYI, ICYMI & FWIW (sorry, we couldn’t resist)
There are more loan programs and assistance acts being drafted, which is encouraging as we all work to navigate the pandemic & turn the economy around. Stay tuned.

Update: March 20, 2020

While Seedcopa + SeedcoDE are not able to assist you directly with the SBA’s Economic Injury Disaster Loans, we are committed to being the best facilitator we can be. Here are some FAQs that summarize what we know now.

Update: March 19, 2020

For businesses attempting to apply for the SBA’s Economic Injury Disaster Loans: Delaware and all 67 counties in Pennsylvania have now been declared eligible disaster areas. Businesses in eligible areas can begin the application process. The following link continues to be the most efficient way to begin the application process:

https://www.sba.gov/funding-programs/disaster-assistance

Please note that Certified Development Companies like Seedcopa are not authorized to administer these loans. Should this change, Seedcopa will be sure to update you.

Update: March 18, 2020

For businesses attempting to apply for the SBA’s Economic Injury Disaster Loans: Much of Pennsylvania and Delaware have now been declared eligible disaster areas. Businesses in eligible areas can now begin the application process. We’re receiving reports that only certain PA counties are being listed so far. The following link continues to be the most efficient way to begin the application process:

https://www.sba.gov/funding-programs/disaster-assistance

Please note that Certified Development Companies like Seedcopa are not authorized to administer these loans. Should this change, Seedcopa will be sure to update you. Benefits of the loan program continue to change, even as the White House and Congress continue to review options for small businesses. As of today, we do know that collateral will be required on larger loans and the program historically has a 5-month payment deferment available. We’ll continue to keep you updated.

Update: March 17, 2020

For businesses attempting to apply for the SBA’s Economic Injury Disaster Loans, please be aware that the system is experiencing an influx of requests that can slow the application process. The following link continues to be the most efficient way to begin the application process, and Seedcopa + SeedcoDE is recommending it to borrowers:

https://www.sba.gov/funding-programs/disaster-assistance

As of this writing, Pennsylvania and Delaware have not been declared to be eligible disaster areas yet, but applications are in process.

Certified Development Companies like Seedcopa are not authorized to administer these loans. Should this change, Seedcopa will be sure to update you.

March 13, 2020

SBA Administrator Jovita Carranza has issued a statement in response to the President’s address to the nation on coronavirus and efforts to support small businesses. She outlined the process for accessing the SBA’s Economic Injury Disaster Loans, which offer up to $2 million in assistance for a small business. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

Please note: To access the SBA’s Economic Injury Disaster Loans, small businesses are instructed to contact the SBA’s Eastern Pennsylvania District Office in King of Prussia.

To read SBA Administrator Carranza’s statement and guidance for small businesses, please click here. We’ll continue to keep you apprised of developments in small business support, as we receive them.

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