COVID-19 Financial Assistance

Governor Henry McMaster has announced that South Carolina is now designated as a federal disaster area. Therefore, the SBA Economic Injury Disaster Loan (EIDL) application is now open to business owners in all of South Carolina’s 46 counties. To be eligible, businesses must meet the SBA requirements of a small business (typically 500 employees or fewer) and be adversely affected by COVID-19. To save time and frustration, we encourage you to contact one of our consultants to guide you through completing the loan application - we are trained to do this.


Note: The SBA website will experience unprecedented traffic.

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On March 27, 2020, the CARES Act was signed into law, which provided additional assistance for small business owners and non-profits, including the opportunity to get up to a $10,000 Advance on an Economic Injury Disaster Loan (EIDL). This Advance may be available even if your EIDL application was declined or is still pending, and will be forgiven. To check the status of your EIDL application click here.

If you wish to apply for the Advance on your EIDL, please visit www.SBA.gov/Disaster as soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application before Monday March 30th. Applying for the Advance will not impact the status or slow your existing application.

SBA Assistance Programs

EIDL

HOW MUCH YOU CAN BORROW:


· Eligible entities may qualify for loans up to $2 million. · The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years · Eligibility for these working capital loans are based on the size (must be a small business) and type of business and its financial resources




ELIGIBLE ENTITIES:





INELIGIBLE ENTITIES:


  • Agricultural Enterprises: If the primary activity of the business (including its affiliates) is as defined in Section 18(b)(1) of the Small Business Act, neither the business nor its affiliates are eligible
  • Gambling Concerns (Ex: Concerns that derive more that 1/3 of their annual gross revenue from legal gambling activities)
  • Casinos & Racetracks (Ex: Businesses whose purpose for being is gambling (e.g., casinos, racetracks, poker parlors, etc.) are not eligible regardless of 1/3 criteria above.
  • Cannabis Industry




LOAN APPROVAL CRITERIA:


· Credit History: Applicants must have a credit history acceptable to SBA · Repayment: SBA must determine that the applicant business has the ability to repay the SBA loan




HOW THE FUNDS CAN BE USED:


· 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. · Funds cannot be used to pay down long-term debt.




WHAT IS NEEDED TO APPLY:





OTHER INFORMATION THAT MAY BE REQUESTED:


· Complete copy, including all schedules, of the most recent Federal income tax return for principals, general partners or managing member, and affiliates (see filing requirements for more information) · If the most recent Federal income tax return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year · A current year-to-date profit-and-loss statement · Additional Filing Requirements (SBA Form 1368) providing monthly sales figures




HOW SOON WILL BUSINESSES RECEIVE MONEY?


· Eligible businesses that submit complete loan packages could receive money within three (3) weeks. · Incomplete information and verification of collateral will delay approval process. The SBA Disaster Team is working tirelessly to process EIDL applications. Please continue to monitor your email for additional correspondence from SBA. Wait times for an initial response from SBA are approximately 2-3 weeks. Questions on your EIDL loan can be directed to the Disaster Customer Service Center at (800) 659-2955. The South Carolina District Office is unable to check the status of EIDL loan applications.




HOW TO APPLY:


· Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at covid19relief.sba.gov/#/ Check the status of your EIDL application here. · Paper loan applications can be downloaded from www.sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155 · Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov





Tips for Applying

Tips for Applying


RECOMMENDATIONS: · Include the disaster in your application - specifically name "COVID-19" or "Coronavirus" · Apply online versus by mail · Write your password down; neither the system nor any personnel are able to retrieve it · Save your work at every prompt. The website may go down periodically due to high volume. If this happens, try to login again at a later time. · Do not rush through the application. Check and recheck the filing requirements to ensure that all the needed information is completed prior to submission. The biggest reason for delays in processing is due to missing information. · Be sure to use the same contact information (business name and the name of all owners) that you use on your federal tax returns. Double check that they match. · If your tax returns reference other businesses that you own, you must also submit those tax returns in order to avoid processing delay. ·   If more funds are needed, applicants can submit supporting documents and a request for an increase. However, SBA recommends that you ask for the total amount you think you will need in your first application. This will be easier and faster for you to get your money. If less funds are needed, applicants can request a reduction in the loan amount. · If the loan request is denied, the applicant will be given up to six months in which to provide new information and submit a written request for reconsideration.




Fraud Alert


The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the largest financial assistance bill to date, includes provisions to help small businesses. Fraudsters have already begun targeting small business owners during these economically difficult times. Be on the lookout for grant fraud, loan fraud, and phishing.
Scam and Fraud Scheme Advisory List
1. SBA does not initiate contact on either 7a or Disaster loans. If you are proactively contacted by someone claiming to be from the SBA, suspect fraud. (The SC SBDC will only reach out to you if you have at some point signed up as a client. All communication will be sent from your assigned consultant.)
2. SBA does not provide grants to small businesses. SBA provides guarantees to lenders to encourage them to make loans to small businesses. If you are contacted via social media about a SBA grant program for small businesses, suspect fraud.
3. If you are contacted by someone promising to get approval of an SBA loan, but requires any payment up front or offers a high interest bridge loan in the interim, suspect fraud. The SC SBDC consulting services are always at no charge to you.
4. Look out for phishing attacks/scams utilizing the SBA logo. These may be attempts to obtain your personally identifiable information (PII), to obtain personal banking access, or to install ransomware/malware on your computer. (The SC SBDC will never need access to your personal banking.)
5. If you are in the process of applying for an SBA loan and receive email correspondence asking for PII, ensure that the referenced application number is consistent with the actual application number.
6. SBA limits the fees a broker can charge a borrower to 3% for loans $50,000 or less and 2% for loans $50,000 to $1,000,000 with an additional ¼% on amounts over $1,000,000. Any attempt to charge more than these fees is inappropriate.
7. Any email communication from SBA will come from accounts ending with .gov. 8. The presence of an SBA logo on a webpage does not guaranty the information is accurate or endorsed by SBA. Please cross-reference any information you receive with information available at sba.gov.
9. If you have a question about getting a SBA disaster loan, call 800.659.2955 or send an email to disastercustomerservice@sba.gov.
10. If you have questions about other SBA lending products, call SBA’s Answer Desk at 800.827.5722 or send an email to answerdesk@sba.gov.
Report Fraud: Report any suspected fraud to OIG’s Hotline at 800-767-0385 or online at, https://www.sba.gov/about-sba/oversight-advocacy/office-inspector-general/office-inspector-general-hotline.





CARES Act


PPP

Paycheck Protection Program Information


The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.

  • Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
  • Loan payments will be deferred for six months.
  • If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
(April 24 @ 10:00 PM EDT) SBA/Treasury Releases Additional PPP Guidance - How to Calculate Maximum Loan Amounts - by Business Type (April 24 @ 4:50 PM EDT) SBA releases Procedural Notice on Participation Sales of PPP Loans (April 24 @ 4:00 PM EDT) SBA will resume accepting PPP loan applications on Monday, April 27 at 10:30 AM EDT. Read SBA's Press Release (April 24 @ 10:50 AM EDT) SBA releases new Interim Final Rule: Business Loan Program Temporary Changes; Paycheck Protection Program Requirements – Promissory Notes, Authorizations, Affiliation, and Eligibility 5/19/2020 - Frequently Asked Questions Calculator for the PPP




ELIGIBLE ENTITIES:


Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

Faith Based Organizations May Apply for SBA Assistance




How to Apply


If you are interested in applying for the Paycheck Protection Program, please contact your financial institution to see if they are an SBA lender, or would like to become one. A current list of SBA lenders in South Carolina can be found here. For a top-line overview of the program CLICK HERE If you’re a lender, more information can be found HERE If you’re a borrower, more information can be found HERE The application for borrowers can be found HERE Check out the Intuit® Aid to assist you with calculating your PPP . You can apply through the following for the PPP.





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Other Financial Assistance Programs

Artist Relief Fund


Americans for the Arts and a consortium of funders introduced the new $10 million Artist Relief Fund for artists facing dire financial circumstances due to COVID-19. The fund launches with $5 million in seed funding from The Andrew W. Mellon Foundation matched with $5 million in initial contributions from an array of foundations across the United States. Each week through September, Artist Relief will provide grants to 100 artists from multiple disciplines. It relies on the support of a growing number of foundations and individual donors and will continue to evolve over the coming months as the needs of artists shift. Organizers will continue to raise funds to assist with the rapidly escalating needs of the country's artists. Applications are now open, and the deadline to apply for the first funding cycle is April 23 at 11:59 p.m. ET. Subsequent deadlines are: · Cycle II: April 24-May 21 (closes 11:59 p.m. ET) · Cycle III: May 22-June 18 (closes 11:59 p.m. ET) · Cycle IV: June 19-July 23 (closes 11:59 p.m. ET) · Cycle V: July 24-August 20 (closes 11:59 p.m. ET) Those in need can apply for assistance here, and those who are able may donate to the fund here.




Facebook Grants


Facebook has announced they will be providing $100 million in cash grants or advertising to small businesses. For more information go to www.facebook.com/grantsforbusiness




US Chamber of Commerce


The US Chamber of Commerce is supposed to go live on Monday 04/20 with a $5,000 grant for businesses with 3-20 employees. You can find more information at https://www.savesmallbusiness.com/




SC Community Works


SC Community works has created 3 new products to help businesses and individuals that may not qualify for federal funding including: A Small Business Relief Fund Line of Credit (up to $10,000) A Community (nonprofit) Relief Fund Line of Credit (up to $50,000 unsecured and $250,000 secured) A Consumer Relief Fund Loan to help with emergencies (up to $1,500 unsecured in partnership with Self Help Credit Union)




Richland County


To help mitigate the impact of the economic downturn caused by the COVID-19 public health crisis, Richland County will make $1 million in financial support available to small businesses and nonprofits through a grant program. You’re invited to apply.
The COVID-19 Pandemic Relief Grant Program will allocate $500,000 for small businesses affected by the economic downturn and $500,000 for nonprofits addressing community needs, such as food insecurity amongst LMI populations, rent and utility assistance.
Visit www.richlandcountysc.gov and click on the link to start the application process. The following is a list of documents businesses and nonprofits should have accessible to complete the application.
For Businesses:
1. Each owner’s driver’s license or state-issued ID
2. SC Secretary of State certificate of existence
3. Three most current and consecutive, executed federal tax returns
4. Richland County business license (or BL Status Form and applicable municipality license)
5. Proof of employee headcount of 50 employees or less via a copy of the business payroll to include all staff’s names, addresses, and salaries
6. Proof of business operation for at least one year
7. Proof of a physical establishment within Richland County
8. Documented loss of income/revenue due to COVID-19 (six months)
9. Profit and loss statements and balance sheets for past six months
For Nonprofit Organizations:
1. Current organization operating budget reflecting sources and amounts of income and expenditures for the organization as a whole, not just the program outlined in the application
2. IRS determination letter indicating the organization’s 501 c 3 charitable status
3. Proof of current registration as a charity with the SC Secretary of State’s Office
4. Current list of board of directors
5. Most recent 990 tax return (If you file a 990 post-card, please also attach a financial report showing financial status.)
6. Pending grant award documents such as grant award letters, emails or correspondence from the grantor
7. Richland County business license or business license assessment survey form, which shows that a business license is not needed for your organization





Updated 8.20.2020 11:42 am EDT

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