With $349 Billion in Emergency Small Business Capital Cleared, SBA and Treasury Begin Unprecedented Public-Private Mobilization Effort to Distribute Funds

WASHINGTON – Following President Trump’s signing of the historic Coronavirus Aid, Relief, and Economic Security (CARES) Act, SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin today announced that the SBA and Treasury Department have initiated a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need.

 

The CARES Act establishes a new $349 billion Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed.

“This unprecedented public-private partnership is going to assist small businesses with accessing capital quickly. Our goal is to position lenders as the single point-of-contact for small businesses – the application, loan processing, and disbursement of funds will all be administered at the community level,” said Administrator Carranza. “Speed is the operative word; applications for the emergency capital can begin as early as this week, with lenders using their own systems and processes to make these loans. We remain committed to supporting our nation’s more than 30 million small businesses and their employees, so that they can continue to be the fuel for our nation’s economic engine.”

 

“This legislation provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed,” said Secretary Mnuchin. “Treasury and the Small Business Administration expect to have this program up and running by April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day.  The loans will be forgiven as long as the funds are used to keep employees on the payroll and for certain other expenses.”

The new loan program will help small businesses with their payroll and other business operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees, or SBA fees – all with a 100% guarantee from SBA. All loan payments will be deferred for six months. Most importantly, the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest.

The Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed. Visit SBA.gov/Coronavirus for more information on the Paycheck Protection Program.

 

  • The new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.

 

Loan Terms & Conditions

 

  • Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
  • Maximum loan amount up to $10 million
  • Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
  • All loans under this program will have the following identical features:
    • Interest rate of 0.5%
    • 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

SBA’s announcement comes on the heels of a series of steps taken by the Agency since the President’s Emergency Declaration to expeditiously provide capital to financially distressed businesses affected by the Coronavirus (COVID-19) pandemic. Since March 17, SBA has taken the following steps:

 

 

Visit SBA.gov/Coronavirus for more information on SBA’s assistance to small businesses.

 

Thanks to Melinda Wilson, Assistant Director of Economic Development, SE CT Enterprise Region

Details of the DRS tax payment extensions

Sales and Use Tax

Has DRS extended the filing and payment deadlines for sales tax returns? (added 3/30/2020)

Yes, within the parameters outlined below.

What small business taxpayers qualify for this relief? (added 3/30/2020)

Taxpayers that have $150,000 or less in annual Sales Tax liability qualify for an automatic extension of time to file and pay. Similarly, taxpayers that have $150,000 or less in annual Room Occupancy Tax also qualify for this relief. A taxpayer that collects both Sales Tax and Room Occupancy Tax must evaluate each tax separately to determine eligibility for relief.

How does a taxpayer determine if it is a qualified small business? (added 3/30/2020)

Taxpayers are required to utilize a calendar year look back period of January 1, 2019, through December 31, 2019. Any taxpayer that reported $150,000 or less in tax during that period qualifies for the relief.

What returns are covered by this extension? (added 3/30/2020)

  • For monthly Sales Tax and Room Occupancy Tax filers: returns and payments due March 31, 2020, and April 30, 2020, are extended to May 31, 2020.
  • For quarterly Sales Tax and Room Occupancy Tax filers: returns and payments due April 30, 2020, are extended to May, 31, 2020.

https://portal.ct.gov/DRS/COVID19/DRS-COVID-19-Response-FAQ

COVID19 Response DRS Announcements

Notice Governor Lamont is telling Connecticut residents to “Stay Safe, Stay Home.” All non-essential workers statewide are being directed to work from home, effective Monday, March 23 at 8:00 p.m. For the latest information, resources, executive orders, and guidance related to coronavirus (COVID-19), visit ct.gov/coronavirus

portal.ct.gov

 

Thanks to Melinda Wilson, Assistant Director of Economic Development, SE CT Enterprise Region

3/27/2020 – Important updates to the SBA Disaster Loan process

SBA has notified us of changes to the process of applying for SBA Disaster loans. This process allows for higher volumes of applications. Please share this information with your constituents as appropriate. We will keep you updated as we receive relevant information.

 

Changes to the application process:

  • it’s no longer live for on line upload (New Application Screen)
  • Now it directs you to print the forms (New Application Screen)
  • You then manually fill downloaded documents and
  • then upload them to “box” – Upload Your Loan Documents
  • If the applicant wants to mail documents:

U.S. Small Business Administration
Processing and Disbursement Center
14925 Kingsport Rd.
Ft. Worth, TX 76155-2243

If you have any questions, please contact 1-800-659-2955 or (TTY) (800) 877-8339

  • If you want to check “Application Status” it refers you to call or email (Front 2 Pages attachment screen)

 

Please contact us directly, or refer your constituents to us, as needed with economic development, small business lending or procurement technical assistance issues.

 

Thanks to Melinda Wilson, Assistant Director of Economic Development, SE CT Enterprise Region

3/26/2020 – DECD’s CT Recovery Bridge Loan application is available

Overview

To provide emergency cash flow relief to small businesses and nonprofits negatively impacted by the coronavirus, Connecticut is now offering qualifying organizations with 100 or fewer employees access to no-interest loans.

Under the Connecticut Recovery Bridge Loan program, a qualifying business or nonprofit organization can apply for a loan of up to $75,000 or three months of operating expenses (whichever is lesser).

This $25 million short-term emergency loan program will be allocated on a first-come, first-served basis. The program will be administered by the Department of Economic and Community Development (DECD) and expedited with the administrative and underwriting support of Connecticut Innovations.

 

Eligibility

To be considered for this program, your business or nonprofit must:

  • Have no more than 100 employees
  • Be in good standing with the Department of Revenue Services (DRS) & DECD
  • Have been profitable prior to March 10, 2020— with no adverse personal credit reports 60 days past due the past six months
  • Not be involved in real estate, multi-level marketing, adult entertainment, cannabis or firearms; nor be a state elected public official or state employee

 

Terms & Conditions

  • Loan maximum of (a) $75,000 or (b) three months operating expenses, whichever is less
  • 0% interest rate
  • 12-month term, with 6-month extension available per request
  • Freely pre-payable
  • Working capital loan
  • Personal guarantee and credit score required

 

How to Apply

To apply for the Connecticut Recovery Bridge Loan Program, applicants must complete an application.

The following information will also be required:

  • Project Financing Plan & Budget
  • 2019 Income Statement (or) Profit and Loss Statement
  • Internal Financial Statements (YTD)
  • 3-month projected cash flow, demonstrating need
  • Summary of adverse economic impact resulting from COVID-19
  • Recent credit score report
  • Applicant Structure Documents
  • Personal Financial Statement
  • Ownership Breakdown
  • DRS Letter of Good Standing

 

Program Process

Upon completing the application and obtaining the required documentation, organizations can submit the information online, via email to decdctrecovery@ct.gov.

After the underwriting and due diligence process, if your loan application is approved DECD will:

  • Issue a Letter of Intent, outlining the loan amount and terms
  • Work with you to execute a Standard Assistance Agreement
  • Ask you to complete ACH paperwork so that funds can be transferred by wire.

For details on the application process, please:

 

Contact

For additional information or questions, contact the Express Hotline at (860) 500-2333 or via email at decdctrecovery@ct.gov. Email preferred due to high volume on phone lines.

 

Thanks to Melinda Wilson, Assistant Director of Economic Development, SE CT Enterprise Region