Pandemic Resource Update 3-25-20

Dear clients,

My thoughts continue to be with you.

I know this is a very trying and difficult time for so many small business owners – both personally and in  your business.

Please see below for updates on a number of opportunities.

WEDC 20/20 Grant Program

At this time, I don’t have any additional information (beyond what I’ve already sent out) to share. You do not need to do anything in particular to “apply” right now. I know everyone is anxious to find out more. We are too. When we have any new information, I will let you know immediately.

SBA Disaster Relief Loan

At this time, I understand the website is down. At some point it will go up again.

In the meanwhile, the Small Business Administration (SBA) is offering classes 2x per day to provide information on the SBA Disaster Relief Loans.

These webinars will be offered every day through this Friday, March 27, 2020 at 10am CDT and 2pm CDT.

Register to attend a webinar this week at 10am here. 
Register to attend a webinar this week at 2pm here. 

I also want to share feedback we’ve received from other clients (and staff who’ve attended webinars) regarding the process

• The application is fairly challenging – in that it can be time-consuming (several hours) and is a bit confusing as well

• The best time to apply is 7pm – 7am however the site was down for maintenance last night from 6pm-midnight EST.

• Save, save, save - on every page all the time - before you move on

• There are a lot of little annoying things - like sometimes the form wants the dash in the FEIN or SSN and sometimes not, but it doesn't do a good job of alerting you to exactly what you did wrong. He said when in doubt, use the simplest version of a response (for example - no dashes).

• If an item does not have a required symbol (red star) you do not need to list anything.

• Note – there will be a hard credit pull.

 This is great feedback that came from one client:

 The SBA application did take some time, and some may find it a bit daunting if they are not computer literate, but I filled out the paperwork for both businesses in a few hours. Much of the time was spent just waiting for 20 and 30 page tax returns to be scanned in and saved for use later. It required having QuickBooks open so that I could easily transfer Balance Sheet numbers that might not be known off the top of your head. It also required uploading tax returns, so if you don’t have them in electronic form, they need to be scanned in, saved, then uploaded, for both the business and the principal owners of the business.

There are then some forms that needed electronic signatures, and some that needed to be downloaded, printed, signed, scanned, and uploaded to complete the application.

I received verification via email right away that all documentation was received as required. Two days later, I received notice that the documents were in the review stage of the process (yesterday)

I have no real idea as to amounts of the loan we may qualify for. I assume that is what all the paperwork will be used for.

At any time in the process, you can save what you have entered so far, and log out, then log in later to complete the application. So don’t wait to get started on it, take a look and see what you need.

I did find that some of my files would not upload during the daytime hours when the SBA has the heaviest work load. I logged out, and logged back in after 8 pm, and the files uploaded right away.

Grant opportunities for Chamber Members - COVID-19 Small Business Impact Grant

The Ethnic & Diverse Business Coalition (EDBC) is a coalition of 14 ethnic and diverse chambers of commerce and partner organizations that serve the State of Wisconsin. This grant application is to assist small ethnic and diverse businesses of any industry that are a business member in one of our coalition members during the COVID-19 pandemic. Before filling out this application, please note that you MUST be a member in good standing with one of our member Chambers of Commerce. If you are NOT a member of a chamber, please reach out to a chamber (you can view a list at www.edbcwisconsin.org) to view chamber memberships and to inquire about your eligibility. Grants will be available up to $500. If you have any questions, please call (414) 287-4172 for more information. 

Madison Chamber of Commerce - Frequently Asked Questions

Last week, the Chamber launched a virtual portal for employers to submit questions relating to COVID-19 and its impact on business. Responses to several questions are already posted at madisonbiz.com/covid19faq. To submit or vote up questions, visit Slido.com and enter the event code #ASK4BIZ or simply click here to be directed to that page. Questions can also be submitted via email at ask@madisonbiz.com. Please note: You DO NOT have to be a Chamber member to access these resources.

SBA Disaster Relief Loans - More Notes

I know many of you have already applied or started the process to apply. I include some notes below from one of our staff members who attended the SBA workshop on the application process and I’ve attached the documents from that session as well. We encourage you to register for one of the educational sessions if you haven’t already submitted an application and are considering doing so. The sessions are offered at 10am and 2pm daily.  The Webinar is 30 minutes, Q&A is about a ½ hour additional. Scroll down to the last email I sent for the registration links.

Some other important notes below:

• Minimum Applicant Credit Score Information is not available to share as this is proprietary information

• Business must cash flow and show the ability to repay the loan

• SBA Loan Officer uses a formula to determine how much the loan amount will be, you do not request a loan amount

• 12mos. Deferral of Payments, Interest accrues from day 1

• Working Capital Loan – this loan is not intended to replace loss of sales or profits, it is meant to be used to cover the following expenses due to disaster:

  • Fixed Debts

  • Payroll

  • Accounts Payable

  • Other bills that could have been paid had the disaster no occurred

• You do not have to accept the loan if one is offered

• If more funds are needed you can submit additional documents to request increase

• If you want less funds you can request a decrease in the amount offered

• Electronic submission is preferred

• Loan Officer may ask for additional information ie. tax returns and current year P&L, other SBA Forms etc.

• Biggest delays in processing is missing information – you can save and go back, it is highly recommend that applicants continue to SAVE as they work through the application

• Write Down the Username and Password that is creates. The SBA cannot reset a password, applicant would need to restart the process

• SBA has Authorized Payment Deferrals for all existing SBA Loans ie Microloans, 504, 7a etc. Reach out to your current lender to request