The impacts of the Coronavirus pandemic to the northern Arizona economy has been severe. Early estimates indicates sales tax revenues are expected to fall at least by 30% through mid-summer. Small businesses in particular, the backbone of our economy and responsible for the creation of almost 8 out of 10 jobs, are struggling. Many are shut and their employees furloughed or laid off, through no fault of their own.
This newsletter is designed to provide useful information to small businesses. We want to help ensure that when our economy starts opening back up, they are able to respond and rebound quickly.
For business owners, Coconino County offers weekly Small Business COVID-19 Response Planning Webinars from 1:30-2:30 p.m., every Thursday. Also, every Tuesday from 2-3 p.m., there are webinar tutorials on how to apply for and information on Small Business Administration (SBA) loans. Phone-in options are available for both.
If you would like more information or to get an invitation to attend the webinars, contact Chris Pasterz, Coconino County Economic Development Manager, at cpasterz@coconino.az.gov. For more details, you can view the links below.
As originally announced, the Express Bridge Loan Pilot Program authorizes Small Business Association (SBA) Express Lenders to provide expedited SBA-guaranteed bridge loan financing on an emergency basis in amounts up to $25,000. These funds are being used for disaster-related purposes to assist small businesses located in communities affected by presidentially-declared disasters while those small businesses apply for and await long-term financing (including through SBA’s direct Disaster Loan Program), if eligible.
Paycheck Protection Program (PPP)
Paycheck Protection Program
Uses: Payroll & approved operating expenses
Collateral: No collateral required
Forgiveness: Up to 100% with approval if employee and compensation levels are maintained for 8 weeks after the loan is made
Amount: 2.5X average monthly payroll for the prior 12 months maximum $10M
Terms: 1% on unforgiven portion and 2 year fixed income
Deferment: No payments for first 6 months
Eligible Entities: All for-profits, sole proprietors & independent contractor, and private non-profits.
Apply: SBA Approved Lender
PPP authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis.
The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8-week period after the loan is made; and employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee.
Starting April 3, 2020, small businesses and sole proprietorship’s can apply for an 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 can I apply? You can apply through any existing SBA lender or through and federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.
Information found on U.S. Small Business Administration. For additional information, please view links.
Collateral: No collateral on loans under/$25K, collateral required for loans over/$25K. SBA will take real estate as collateral when available.
Forgiveness: 100% of $10K EIDL advance
Amount: Up to 6 months of operating expenses not to exceed $2 million
Terms: 3.75% small business, 2.75% non-profits, and 30 year fixed note
Deferment: No payments for first 12 months
Eligible Entities: Small business with 500 or fewer employees, sole proprietors & independent contractor, small agriculture coops & aquaculture, and private non-profits.
SBA’s Economic Injury Disaster Loan (or working capital loans) are available to small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations. This includes: businesses directly affected by the disaster and businesses that offer services directly related to the businesses in the declaration.
How can I use the loan funds? These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion.
What kinds of small businesses can apply? Eligible industries include but are not limited to the following: hotels, recreational facilities, charter boats, manufacturers, sports vendors, owners of rental property, restaurants, retailers, souvenir, shops, travel agencies, and wholesalers.
The maximum unsecured loan amount is $25,000.
Applicants do not go through a bank for this loan. Please use the link below to apply for Disaster Loan Assistance.
Information found on U.S. Small Business Administration.
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