From the Central Virginia Small Business Development Center |
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Leverage recent EIDL changes to improve cash flow and debt |
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Dear small business owners and supporters,
For businesses eligible for EIDL, the White House has announced positive changes to the EIDL program. Beginning October 8th 2021, the SBA will begin taking applications for increases to loan amounts for the EIDL program up to $2million. Applicants should review the FAQ’s found here:
Key features of the program:
- Low interest rates, 3.75% for taxable businesses, 2.75% for non-profits;
- No payments due for 24 months, although interest will continue to accrue;
- Loan term up to 30 years, with a 28-year amortization period;
- Proceeds may be used for working capital and also for repayment of existing non-SBA loans, no matter when the loan was taken;
- Simplified formula for determining loan amount up to $500,000 will be 2019 gross receipts or sales minus 2019 costs of goods sold multiplied by 2, or $500,000, whichever is less;
- For loans greater than $500,000, SBA will underwrite your loan. As part of its underwriting, SBA will perform a cash flow analysis for your business to confirm your business’s ability to repay the proposed COVID EIDL loan as well as your business’s existing debt obligations;
- For applicants that began operations partially through 2019 or 2020, SBA will calculate your maximum eligible loan amount;
- For applicants using rental loss, SBA will calculate your maximum eligible loan amount;
THIS LOAN PROGRAM IS TIME SENSITIVE, SO DO NOT DELAY
**** EIDL PROGRAM ENDS DECEMBER 31, 2021 ****
Virginia Career Works has removed the match requirement for the Return to Earn program (providing up to $500 signing bonus for new employees at $15 and up), and some communities are relaunching small grant programs. QuadTank (for businesses in Fluvanna, Greene, Louisa, Madison and Orange Counties) now offers $7,000 to the winner of the pitch competition. Our financial counselors are also working with more and more businesses to find ways to increase sales, optimize cash flow, or access capital.
We understand the pain felt by not only the delta variant, but also supply chain and hiring problems. We are here for you to explore resources and best practices, from surviving challenges, to starting or growing your business. Please let us know how we may help.
-Greg McFetridge, Access to Capital Advisor
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PPP Forgiveness: The President’s plan will make it easier for more than 3.5 million PPP borrowers with loans of $150,000 or less to get their loans wiped clean. Under the new streamlined approach, SBA sends a pre-completed application form to the borrower who can review, sign, and send back to SBA, which then works with the lender to complete the forgiveness process. Since launching this new process on August 4th, more than 820,000 small businesses have applied for forgiveness, with borrowers spending an average of 6 minutes on the application and 60% of applicants completing the process on their mobile phone. SBA expects more than 2.5 million additional small businesses to take advantage of this streamlined process in the months ahead, helping them avoid needless bureaucracy and avoid costly principal and interest payments on their loans.
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Employee Retention Credit for small businesses: The federal government created the Employee Retention Credit (ERC) in response to the detrimental effects of the COVID-19 pandemic on small businesses. As part of the CARES Act, the ERC offers tax credits to encourage more businesses to retain employees during the pandemic.
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Kathy (Kitty) Matthew, owner of Natre'al Hair Design, has been professionally serving Charlottesville and Central Virginia with professional hair care for years.
Her new website, built for her at no charge under the Website Jump Start program, showcases hair design services and her 100% natural hair oil.
Do you need a business website? CV SBDC can build yours for FREE too!
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The website that your business NEEDS to grow now can cost thousands of dollars. But thanks to grant funding, your local SBDC is producing website at no cost for Central Virginia local businesses!
Our expert developers can create a simple "online business card" as we did for Natre'al Hair Design, or a site of up to 3-5 pages. You'll also work with our advising team to identify your business needs and refine your marketing strategy.
Check out our Website Jump Start Portfolio to see examples of the great websites we've created with local businesses, and apply today to get us working on yours! |
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QUADTANK PITCH COMPETITION |
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Win the $7,000 Quad Tank Competition!
For start-up or existing companies in Fluvanna, Greene, Louisa, Orange, and Madison Counties.
Enter to participate in the third annual QuadTank Pitch Competition – winner takes all $7,000 cash prize.
PROCESS:
1) Participating individuals or teams submit a business plan or pitch deck no later than Monday, October 11th at noon to QuadTank@cvsbdc.org.
2) If there are more than 4 qualified entries, there will be a pre-qualification pitch round held via zoom on Oct 13th and Oct 14th.
If online connectivity is an issue zoom may be accessed by mobile device or we can provide a location in your county for you to make your pitch.
3) Four semi-finalists will be invited to present in person at Quad Tank on Wednesday, October 20th in Orange County.
If you are unable to attend this online workshop, contact Shira at events@cvsbdc.org for the event recording. |
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SBDC Retail Expert, Marc Willson Visits Central Virginia |
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Marc Willson is the Small Business Strategist working for the Virginia Small Business Development Center (VSBDC) Network and brings 45 years of business experience to bear in helping retail, restaurant, and tourism-related small businesses refine and promote their concepts to the public. Marc conducts lectures and meets personally with small businesses throughout Virginia as part of the award winning STaMP (Small Town and Merchant Program), providing confidential one-on-one counseling in partnership with our local SBDC office.
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A Guide for Retail Renewal
October 5 | 10:00 - 11:30 AM
As businesses reopen in a post-COVID world, the retail landscape has changed.
Topics covered:
- Current retail trends since COVID
- Customer expectations of the retail experience
- New opportunities and challenges to maximize for success
- Tips for developing and executing a renewed business strategy
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Coopetition TEAM Eventacular
October 6 | 9:00 - 10:30 AM
The feel of in person events gradually returns to normal as businesses move past COVID.
Topics covered:
- What is "Coopetition"
- What have businesses done to survive and thrive through the pandemic?
- Tips to plan for cooperative events within a business community
In person event - register early to guarantee your spot.
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Marketing Monday: Using SquareSpace
Oct 4 | 12:00 - 1:00 PM
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Learn how to build and optimize your website on Squarespace!
This workshop highlights the advantages of building your website on Squarespace and everything you need to know to build your website.
Topics covered in this workshop:
- What is Squarespace
- Is Squarespace Right For Your Business
- Pricing Options & Features
- Live Demo- building a site from scratch
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Charlottesville Entrepreneurs and Espresso (ce-2)
Sept 21 | 8:00 - 10:00 AM
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State/Local Contracting: Using eVA
Oct 7 | 10:30 AM - 12:00 PM
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More upcoming events and trainings:
Starting Your Business | Sept 16, 10:00 am - 12:00pm | Register
How to Generate Leads Using Digital Marketing Tools | Sept 23, 4:00 - 5:30 PM | Register
Starting Your Business | Oct 12, 10:00 am - 12:00pm | Register
Fed Gov Contracting: Navigating SAM and the DSBS | Oct 14, 10:00 - 11:30am | Register
QuadCounty Business Summit | Oct 20, 8:30 AM - 12:30 PM | Learn More
Pitch Preview Application Deadline | Oct 25, 11:59pm | Apply
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This newsletter is sponsored by F&M Bank. Thank you for your support of our entrepreneurs.
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Charlottesville main office phone: 434-295-8198 Culpeper direct phone: 540-727-0638
Culpeper office: 803 South Main Street, Culpeper, VA 22701
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