A TALK Briefing | April 2, 2020
Your COVID-19 Updates
Your COVID-19 links to check reside on our TALK website at www.talklou.com. We are all in this together! Want to share past updates from TALK? They are on the COVID-19 link as well!
News To Use
There are currently two major federal loan programs for small businesses seeking aid during the COVID-19 crisis offered by the U.S. Small Business Administration (SBA), expanded by the US CARES Act. One is the newly-created Paycheck Protection Program, or PPP. The other is the Economic Injury Disaster Loan Program or EIDL (see down further).

At Midnight Tonight, the Application Period Opens for PPP! Paycheck Protection Loan Disaster Relief also known as SBA 7A Loans--made from your area bank and guaranteed by the US Small Business Administration.

SBA announced on March 31 that all loans under this particular program will have the following identical features:
  • Interest rate of 0.5 percent
  • Maturity of 2 years
  • First payment deferred for six months
  • 100% guarantee by SBA
  • No collateral
  • No personal guarantees
  • No borrower or lender fees payable to SBA
How to apply
According to guidance from the SBA current as of April 1, 2020: “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.”
Who Can Apply
--Small Businesses, including sole proprietors and independent contractors, under 500 employees
--Non-Profits (501C3)
--Hospital & Dining Encouraged to Apply
If you have other outstanding loans, ask your primary banker to make sure this application will not be a violation of existing loan covenants.

You can also consider the EIDL loan program (Economic Injury Disaster Loans). These are applied for primarily through the SBA website. For these you must have a favorable credit history and note an ability to repay. It can be used for paying fixed debts, payroll, and other bills. Loans over $25K require collateral. Emergency advances at $10K are available for immediate use. This is the recommended path for those who have no employees, because it also has a longer payback period.

For EIDL loans, apply directly to SBA’s Disaster Assistance Program at: DisasterLoan.sba.gov
•There is no cost to apply
•There is no obligation to take the loan, if offered.
For Startups:
Others options for startups who need cash can be found at KIVA (zero% loans) and WeFunder, which now offers some payment deferments.

For more information for startup funding COVID-19 suggestions, you can reach out to bryce@accessventures.org
NEW: Opening NEXT Monday, April 6

In other news, Mayor Greg Fischer announced the creation of the  Small Business Community Loan Program . This loan program is a $900,000 fund that will provide zero-interest loans to small businesses impacted by COVID-19, with no payments for 12 months.

Starting Monday, April 6, Community Development Financial Institution LHOME will begin accepting applications from small businesses for zero-interest loans of up to $25,000 through the Small Business Continuity Loan Program. Businesses will not be required to make any payments on the loan principal until the end of the 12-month loan term.
For small businesses to be eligible to receive a loan they must meet the following criteria:
  • Must have 10 or fewer full-time employees.
  • Business must show emergencies connected with the COVID-19 economic crisis.
  • Business must be located in Jefferson County.
  • Business must be in good standing with Louisville Metro Revenue Commission as of March 1, 2020.
  • Must agree to receive financial coaching and apply for other assistance within 90 days of loan closing.

The loan program was developed in partnership with  Louisville Metro Government , GLI,  LHOME Render Capital , and  Lenderfit . Apply here: https://www.lhomeky.org/
Applications for the $500  Lifeline Loan  (payday loan alternative) and $25,000  Small Business Continuity Loan  will be available Monday, April 6th, 2020. Funds should be available within three to five business days from receiving a completed application. For more information, please contact:  info@lhomeky.org  or 502-882-8091.

Loans will be administered by local Community Development Financial Institution (CDFI) LHOME, and managed through Lenderfit, in an effort to keep small businesses viable through the pandemic and to serve as a low-cost loan to bridge into the U.S. Small Business Administration loans or other relief programs.
Good Cyber Hygiene: Key Steps to Protect Yourself When Using Zoom
These are the top six steps to take to protect yourself when using Zoom for virtual meetings to avoid cyber bad actors coming in to your session:
--Change Screensharing to Host Only
--Disable Join Before Host
--Disable File Transfer
--Disable Allow Removed Participants to Rejoin
--Disable Virtual Background (again change screensharing to host only)

Other Resources

If anyone has information regarding possible price gouging, contact the Office of the Attorney General Consumer Protection hotline at 888-432-9257 or fill out the complaint form online.