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What are the available programs? What's the difference? How do I qualify?

There were two programs discussed in this webinar. #1 is the Economic Injury Disaster Loan (EIDL). This is a low-interest, 30-year loan. #2 is the Paycheck Protection Program (PPP) which is a forgivable loan. For both programs, any size business from 1 to 499 employees qualify as long as your business existed before February of 2020. Businesses with no employees (sole proprietors) and independent contractors DO qualify for the PP.

Where do I apply?

For the EIDL, you will apply online directly with the SBA at www.sba.gov/coronavirus. For the PPP, you will apply directly with a bank or credit union. It can be your bank or another bank. It can be an online bank. If your bank is not accepting PPP applications, find one that is. If your bank declines your application, apply somewhere else. You can apply to multiple banks but you cannot accept money from more than 1. One resource is MBE Capital. You can apply online at mbeppp.com.

How much will I get?

This depends on your situation the your specific numbers. A business making $250K per year will NOT get the same amount as a business making $30K a year. When you complete the forms, it will ask for your finances.

It's just me, I don't have payroll or employees. Do I need to use a payroll company like ADP or Paychex? What do I put for monthly payroll on the PPP application?

No - you don't need to hire a payroll company. However, I highly recommend it for all small businesses. There are really affordable online options that ensure you keep good records. On the PPP application form, it will ask you for your monthly income X 2.5. How do you calculate monthly income? There are two ways to calculate this. (1) On your taxes, Schedule C line 31 divided by 12 will equal your monthly income. (2) Your 1099 divided by 12 will equal your monthly income. If you disburse checks to yourself or use a payroll service, you will use those numbers for monthly income.

What can I use the funds for? What qualifies as forgivable spending for the PPP?

The PPP must be used in the following manner: 60% on payroll and 40% on allowable expenses (rent, utilities, etc.) over a 24-week period. The EIDL is a working capital loan. 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.

Can I get both the EIDL and the PPP?

Yes. You can apply for BOTH the EIDL and the PPP.

What's the minimum credit score for the EIDL?

The speakers did not have an exact number but let's be real... if your credit is 300-500... there is a very high chance you will NOT be approved this loan. If you're borderline, apply anyway! Apply apply apply until you get a no. You literally have nothing to lose.

What are the terms of the EIDL? How does it differ from other commercial loans or SBA loans?

This is a 30-year working capital loan. Most commercial loans are not THIRTTYYYYY years! This is great for you. Secondly, the interest rate is extremely low. 3.75% for businesses and 2.75% for non-profits.

What's the deadline for these programs?

August 8th is the deadline for the PPP. Currently, the EIDL will close December 2020. However, we highly recommend you apply immediately to make sure there will be funds left.

#10

How do I reach the speakers? How do I reach SBA rep in my city/state?

Thomas Stith: www.sba.gov/nc 704-344-6563. Bob Weston: NC SBTDC www.sbtdc.org. Greensboro City Councilperson, Justin Outling: Justin.outling@greensboro-nc.gov and 336-232-4685. To find an SBA office near you, type in sba.gov/your state's two-letters. For example, California would be... sba.gov/CA and South Carolina would be sba.gov/SC

#11

I need general business help and advice. How do I pivot? Where can I go? How do I grow my business?

We have a coaching network for small business owners. Each month we meet with businesses from around the US via Zoom to discuss topics related to business growth. Topics range from credit and cash flow management to taxes and real estate investing. Through this coaching network, we're able to hold you accountable, teach, answer questions, and guide you through the process of growing a successful business that can be passed down to future generations. Our goal is to teach as many people how to build generational wealth. For more info go to mikeandmona.com/coaching

Come Get this Money

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