Prepare for Release of Federal COVID-19 Loan Programs NOW!
The U.S. Small Business Administration will re-release loan programs, likely this week bringing funds to small businesses and non-profits. Availability for funding will be on a first-come first-served basis, so it is important to be prepared now and apply as soon as the funds are released. Find out more information about these programs from the Colorado Nonprofit Association and the National Council of Nonprofits.
Paycheck Protection Program (PPP) (Note: page currently under construction)
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
You must apply through a lender.
Economic Injury Disaster Loan (EIDL)
An established program that helps small businesses and non-profits overcome the loss of revenue during a declared disaster such as a hurricane, major fire, or, in this case, the COVID-19 pandemic. This loan includes a $10,000 advance (if you apply).
Apply online when EIDL becomes available.
What You Can Do Now
1) Contact your local bank ASAP to see if they are an approved SBA lender:
- Find eligible lender banks here
- If your bank is not an approved SBA lender, contact an approved bank immediately
2) Gather the following items NOW:
- Copy of authorized agency representative’s driver’s license or other valid form of identification (front and back)
- Quarterly Federal Tax Form 941s (or annual Form 940) for 2019
- First quarter Federal Tax Form 941 for 2020, if available
- Payroll roster for the period including February 15, 2020, along with support in the form of internal payroll register or documentation from a third-party payroll vendor such as ADP or Paychex
- Copy of calculation for Average Monthly Payroll
- Primary contact name, email address and direct phone number (for non-profits, should be someone in leadership position, such as Executive Director, CEO, or Board Chair)
- Some banks may require additional documentation such as: articles of incorporation, by-laws, IRS form 990 etc.
3) Review the video guides from Colorado SBDC to familiarize yourself with the programs and application process:
- Colorado SBDC video guide for PPP loan. Here is the past PPP application that you can review. Be sure to work with your lender for the most current application.
- Colorado SBDC video guide to filling out EIDL application
Check with your local lender and the Small Business Administration for the most accurate info as we await release of these funds. Here is a report of PPP funds for the first round through April 16.