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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: June 3, 2020

The U.S. Small Business Administration has released an updated Paycheck Protection Program (PPP) report detailing data from both rounds of PPP funding through May 30. In Pennsylvania, there have been 156,443 loans totaling $20,456,338,186. In Delaware, there have been 11,574 loans totaling $1,455,386,237. Read the complete report here.

Update: May 28, 2020

Chester County’s COVID-19 Business Task Force has launched “Restore Chester County,” an online toolkit to help prepare businesses, organizations and residents as they move to the yellow phase and beyond. Information and guidance for 20 different business and organization sectors is available at https://RestoreChesterCounty.org.

Update: May 18, 2020

The SBA has released the Loan Forgiveness Application form for the Paycheck Protection Program (PPP). Borrowers who would like to apply for forgiveness must submit the form to their lender and may also complete the application electronically through their lender. We expect further guidance shortly. In the meantime, there are preliminary instructions included for the PPP Loan Forgiveness Calculation Form, as well as a summary of costs eligible for forgiveness. Access the Paycheck Protection Program’s Loan Forgiveness Application here.

Update: May 14, 2020

The SBA has issued FAQ #46, which clarifies safe harbor guidance for borrowers using the Paycheck Protection Program (PPP). This FAQ states, “any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2,000,000 will be deemed to have made the required certification regarding the necessity of the loan request in good faith.”

The SBA will continue to audit PPP loan borrowers greater than $2,000,000, noting that “borrowers with loans greater than $2,000,000 that do not satisfy this safe harbor may still have an adequate basis for making the required good-faith certification, based on their individual circumstances in light of the language of the certification and SBA guidance.”

If the SBA determines that a borrower lacked an adequate basis for the “need” certification, they will request loan repayment and will notify the lender. “If the borrower repays the loan after receiving notification from the SBA, SBA will not pursue administrative enforcement or referrals to other agencies based on its determination with respect to the certification concerning necessity of the loan request.”

Update: May 5, 2020

Chester County is now offering grants of up to $25,000 for individual businesses. You can find more information and apply online via the Chester County Economic Development Council for the Chester County Main Street Preservation Grant Program here.

Update: May 5, 2020

iHeartRadio and the U.S. Small Business Administration (SBA) held a May 4th webinar on the CARES Act and the COVID-19 relief options that are available for small businesses. Senior officials from the SBA provided an overview of the Paycheck Protection Program, SBA Express Bridge Loans, Economic Injury Disaster Loans, SBA Debt Relief options and answer questions specific to East Coast small businesses. You can listen to it here.

Update: May 4, 2020

Farms and other agribusinesses are now eligible for the Small Business Administration’s Economic Injury Disaster Loans (EIDL) and EIDL Advance programs. The portal reopened today as a result of funding authorized by the Paycheck Protection Program and Health Care Enhancement Act, P.L. 116-139, which provides additional funding for farmers, ranchers and certain other agricultural businesses affected by the coronavirus pandemic. Here’s where to access the EIDL portal.

Update: May 1, 2020

The Department of Labor is inviting employers and workers to submit their ideas online about reopening businesses. Specifically, they want to hear about the challenges businesses face as they reopen. You can join the national online dialogue here: Opening America’s Workplaces Again.

Update: April 27, 2020

Today is the day: The U.S. Small Business Administration will again begin accepting applications from participating lenders for emergency loans on Monday, April 27 at 10:30 a.m. Previously, nearly $350 billion for the Paycheck Protection Program and other federal funding set aside by Congress for small businesses ran out in less than two weeks. Then, last week, legislators negotiated a plan to replenish the funds. The legislation allocates about $320 billion to the PPP and $60 billion for the SBA’s Economic Injury Disaster Loan program (EIDL). The package also sets aside funding for small community banks and businesses in under-served urban and rural areas.

Here’s where to find the SBA’s relief options and additional resources.

Don’t forget to go through our checklist of documents needed to apply for emergency assistance.

To the President it goes: Now that the House has approved legislation that would replenish the the Paycheck Protection Program with $320 billion, it is expected to be signed by President Trump. The program is designed to keep small businesses from closing and their workers from going on unemployment during the coronavirus pandemic. Note: About $60 billion of the funding for the program would be set aside for community-based lenders, smaller banks and credit unions to assist smaller businesses that don’t have established relationships with big banks and had a harder time accessing the funds in the first round of loans. About $10 billion would be allocated for administration fees.

The PA Department of Community and Economic Development announced that new funding is available to help technology-based companies impacted by the novel coronavirus. More information can be found here.

Update: April 21, 2020

The U.S. House of Representatives is expected to vote on additional funding for the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program this week. We’ll let you know when we know more. In the meantime, attached is a list of PPP loans provided so far, including a break-down by industry. The SBA has approved 69,567 PPP loans in Pennsylvania, totaling more than $15 billion.

Update: April 16, 2020

The Small Business Administration says it’s “unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.” More here.

Update: April 14, 2020

The House Committee on Small Business has released the “Navigate the CARES Act for Small Businesses” guide, which contains updates and information on the implementation of the CARES Act. Click here to view it.

Update: April 9, 2020

About 70% of small businesses have applied for a CARES Act loan, according to a survey by the National Federation of Independent Business. More than half of the small businesses that have not yet applied plan to or are considering it. Here’s the full report from the The Washington Post.

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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