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Highland Area Chamber of Commerce
NEWS AND IMPORTANT UPDATES
SMALL BUSINESS ADMINISTRATION (SBA)
RESPONSE
Economic Injury Disaster Loan have been activated by the Department of Treasury. These program are for employee retention,
 
Please note, these loans are on a first come, first serve basis.
 
The deadline to apply for an Economic Injury Disaster Loan is Dec. 16, 2020.
 
For more information about Coronavirus, please visit: Coronavirus.gov .
 
For more information about available SBA resources and services, please visit: SBA.gov/coronavirus .

NOTE:
Sole Proprietors and Independent Contractors are also eligible. Those programs will be available next week. These will require more materials and working with your local lenders.

Please keep in mind that these loans are subject to change as the federal government is finalizing the details. 





The CARES Act creates a “Paycheck Protection Program” and “Loan Forgiveness Program” within the Small Business Administration. 
Details:

“Paycheck Protection Program” 
  • The program provides federally guaranteed loans for 8 weeks of assistance. 
  • The new loan will be able to cover payroll costs including costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums, employee salaries, commissions, or similar compensations, payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation), rent (including rent under a lease agreement), utilities, and interest on any other debt obligations that were incurred before February 15, 2020.
  • Those eligible for this new loan are businesses and 501(c)(3)s with less than 500 employees. Additionally, sole proprietors, independent contractors, and self-employed individuals are eligible. 501(c)(6) organizations are not eligible.
  • Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means that each store location could be eligible. If a franchisor appears in the Small Business Administration’s National Franchise Directory, assistance will extend down to the franchisee at the store or location level.
  • To increase the speed and turnaround time within this program, all lenders will have delegated authority, which allows them to process, close, and service a loan without SBA review. All borrower and lenders fees for this program will be waived.
  • The maximum loan amount will be the lesser of $10 million or 2.5 times the average monthly payroll, based on the previous year’s payroll. The loan will have an interest rate of 4%.

“Loan Forgiveness Program”
  • This program establishes a loan forgiveness tool that allows businesses that maintain payroll continuity from February 15, 2020 through June 30, 2020 (as defined by headcount) to request forgiveness on a Paycheck Protection loan used on payroll costs, mortgage interest, rent and utility pay over an 8-week period.
  • To receive loan forgiveness, a business will have to work with a lender to justify their payroll was maintained through documentation.
Emergency Economic Injury Disaster Loan (EIDL) Grants
  • Expedites access to capital for small businesses who have applied for an SBA EIDL. Businesses can request an advance of up to $10,000 on the loan to provide covered leave, maintain payroll, and pay debt obligations.
  • 501(c)(6)s ARE eligible for these loans.

For all of the aforementioned loans, the Credit Elsewhere Test, collateral requirements, and personal guarantee requirements are waived.

Additionally, refinancing options are included in both loans, and prepayment penalties have been removed.

Borrowers that are eligible for both can receive both a Paycheck Protection loan and an EIDL, as long as they cover different items
OnwardCA Coalition

California has announced $50 million in loan guarantees for small businesses
 
Governor joins Bitwise Industries in announcing OnwardCa.org , a platform connecting COVID-19 displaced workers with over 70,000 job opportunities in critical industries
 
State is also allowing small businesses to defer payment of sales and use taxes of up to $50,000, for up to 12 months

OnwardCA is an initiative of companies, foundations, and humans to get California workers displaced by COVID-19 essential life services and back to work as quickly as possible.
U.S. Department of Treasury
Steven Mnuchin Secretary of the Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.
For specific details and further information visit:
SBDC - Small Business Development Centers Resources
The SBDC is prepared to help small business navigate the numerous resources available.
California Franchise Tax Board
The Franchise Tax Board (FTB) announced updated special tax relief for all California taxpayers due to the COVID-19 pandemic.

The San Bernardino County Department of Public Health is also working to provide the public and employers with information and their link is:
The San Bernardino County Department of Public Health is also working to provide the public and employers with information and their link is:
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We wish each of you health and prosperity and we will continue to work for you! 
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