Coronavirus: Small Business Updates and Resources

Updated: July 31, 2020, 8:39 PM

In light of the continuing concerns surrounding COVID-19 (coronavirus), the Florida SBDC at UCF has suspended all in-person activity at all of our main offices, as directed by the University of Central Florida and the Florida SBDC Network.  We will continue to provide consultation services via telephone and video chat.

CARES Act Paycheck Protection Program (PPP) Loan

New Deadline: August 8, 2020

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 can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.

Frequently Asked Questions for Lenders and Borrowers

For affiliation rules applicable for the Paycheck Protection Program, click here.

The Interim Final Rule for Applicable Affiliation Rules for the Paycheck Protection Program as posted in the Federal Register.

Frequently Asked Questions for Faith-Based Organizations Participating in the Paycheck Protection Program and Economic Injury Disaster Loan Program

Who Can Apply

The following entities affected by Coronavirus (COVID-19) may be eligible:

  • Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
    • 500 employees, or
    • That meets the SBA industry size standard if more than 500
  • Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
  • Sole proprietors, independent contractors, and self-employed persons

Loan Forgiveness and Details

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of 1%.

If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you when you apply with a lender.

For more information about the U.S. SBA PPP program, click here.

Main Street Lending Program

The Federal Reserve has announced that it is establishing a Main Street Lending Program to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF).

Please read the Frequently Asked Questions (FAQs) for more information. Also term sheets for each facility providing information regarding eligibility and conditions can be found below.

Main Street New Loan Facility (MSNLF)Term Sheet (April 30, 2020) (PDF)

Main Street Priority Loan Facility (MSPLF) Term Sheet (April 30, 2020) (PDF)

Main Street Expanded Loan Facility (MSELF)Term Sheet (April 30, 2020) (PDF)

Source: https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm

SBA Economic Injury Disaster Loan (EIDL)

Notice: Lapse in Appropriations

SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.

Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.

Overview

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.

Eligibility

The SBA’s Economic Injury Disaster Loan provides vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic.

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19.

Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.

The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid.

Frequently Asked Questions for Faith-Based Organizations Participating in the Paycheck Protection Program and the Economic Injury Disaster Loan Program

SBA Express Bridge Loans

Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.

Terms

  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan

Orange CARES Small Business Grant Program

Orange County’s Small Business Grant Program will invest $72.9 million into Orange County small businesses. The Program will allow approximately 6,500 qualifying small businesses access to $10,000 in grant money to cover normal business expenses, including employee wages, vendor bills, and rent to help offset the temporary loss of revenue due to COVID-19. Federal Cares Act provides the funding for this County program.

EXPANDED ELIGIBILITY FOR CARES ACT FOR SMALL BUSINESSES

More Orange County small businesses can still qualify for funding to help them overcome the temporary loss of revenue due to COVID-19. Orange County’s Small Business Grant Program recently expanded eligibility of its program to allow more businesses to qualify. Companies that have received $75,000 or less in Federal Pay Check Protection (PPP) loans will now be eligible.
Additionally, the program has “micro-grants” to serve more home-based businesses in the community. Select home-based businesses will be eligible for up to a $3,000 micro-grant, of no more than 10 percent of their 2019 revenue. More information to come on

Click here for more information

SBA Debt Relief

The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis.

As part of SBA’s debt relief efforts,

  • The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
  • The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.

Additional Debt Relief

For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.

What does an “automatic deferral” mean to borrowers?

  • Interest will continue to accrue on the loan.
  • 1201 monthly payment notices will continue to be mailed out which will reflect the loan is deferred and no payment is due.
  • The deferment will NOT cancel any established Preauthorized Debit (PAD) or recurring payments on your loan.  Borrowers that have established a PAD through Pay.Gov or an OnLine Bill Pay Service are responsible for canceling these recurring payments.  Borrowers that had SBA establish a PAD through Pay.gov will have to contact their SBA servicing office to cancel the PAD.
  • Borrowers preferring to continue making regular payments during the deferment period may continue remitting payments during the deferment period. SBA will apply those payments normally as if there was no deferment.
  • After this automatic deferment period, borrowers will be required to resume making regular principal and interest payments.  Borrowers that cancelled recurring payments will need to reestablish the recurring payment.

If you have questions about your current loan and whether or not your loan is automatically deferred, please contact your Loan Servicing Office directly using the following information:

  • Birmingham Disaster Loan Servicing Center:
    • Phone: 800-736-6048
    • Email: BirminghamDLSC@sba.gov
  • El Paso Disaster Loan Servicing Center:
    • Phone: 800-487-6019
    • Email: ElPasoDLSC@sba.gov

Employee Retention Tax Credit (ERTC)

This tax credit provides direct financial support to businesses of all sizes that retain and pay their workers, either in active or furloughed status, rather than lay them off. Please note: employers who receive a PPP loan are not eligible for a tax credit. For more information, visit  https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act

Rebuild Florida Business Loan Fund

The Rebuild Florida Business Loan Fund provides financing to assist businesses with resiliency efforts. The funds will address the current gap in available, affordable capital for businesses that can be used for inventory purchases, construction, working capital, equipment financing and more. For more information, visit http://floridajobs.org/rebuildflorida/businessrecovery.

Black Business Loan Program

The Black Business Loan program (BBLP) offers alternative lending solutions to Florida-based black owned small businesses by providing short-term loans and technical assistance. For more information, visit https://famufcu.com/black-business-loans/ or https://miamibaysidefoundation.org/loans/black-business-loan-program/

Microfinance Guarantee Program

The Microfinance Guarantee Program is available to stimulate access to credit for entrepreneurs and small businesses in Florida by providing targeted guarantees to loans made to such entrepreneurs and small businesses. Funds appropriated to the program must be reinvested and maintained as a long-term and stable source of funding for the program. For more information, visit https://www.enterpriseflorida.com/small-business/microfinance-guarantee-program/

BBIF Florida

BBIF Florida is a nonprofit community development financial institution. BBIF is a mission driven organization which helps Florida’s Black, minority and underserved small businesses thrive by providing loan capital alongside business development training.

For more information visit: https://bbifflorida.com/

Accion

Accion is a global nonprofit organization committed to creating a financially inclusive world, with a pioneering legacy in microfinance and fintech impact investing.

For more information visit: https://us.accion.org/small-business-loans/

Florida SBDC at UCF Consultation Services

All consulting appointments will be conducted either via phone call or  video chat until further notice. Your consultant will discuss with you the best method of communication.

State Resources

Florida Department of Health Covid-19 Website. Information and guidance regarding COVID-19 in Florida.

For questions related to COVID-19 in Florida, individuals and business can contact the Florida Deparment of Health dedicated COVID-19 Call Center by calling (866) 779-6121. The Call Center is available 24 hours a day. Inquiries may also be emailed to COVID-19@flhealth.gov.

FloridaDisaster.Biz Website: Business Damage Assessment

If your employment has been negatively impacted because of efforts to stop the spread of COVID-19, you may be eligible to receive Reemployment Assistance. For more information go to Reemployment Assistance Service Center.

Federal Resources

U.S. Small Business Administration Emergency Preparedness and Disaster Assistance

These resources can help small businesses develop a plan to protect their employees, lessen the financial impact of disasters, and re-open for business quickly to support the economic recovery of the community.

Paid Leave for Workers and Tax Credits for Small and Midsize Businesses

SBA Disaster Assistance in Response to Coronavirus (COVID-19)

IRS.gov/coronavirus