Small Business Disaster Loan Information

Feel free to share this information with any business owners you think might be interested/eligible.

Florida Disaster Loan

  • $50K, 0% interest for 12 months, 12% per annum on the unpaid balance thereafter.
  • This is a limited amount and is going quickly. Encouraged to apply as soon as possible.
  • They are only accepting applications online (according to Marice at the UNF DEO office I spoke with today: 904-620-1071)
  • Have to be a business in the state of Florida
  • They only require the following documents and will reach out to request any additional documentation as needed.
    • 2017 & 2018 (or 2018/2019 if you have them done) Business Tax Returns
    • 2018 & 2018 (or 2018/2019 if you have them done) Individual Tax Returns
    • Employer Tax Documentation: W-2s for a minimum of two employees
    • Valid ID for each owner.
  • We did include some additional documentation to illustrate how COVID-19 has impacted our business (ie. Monthly sales figures)
  • On the application, it requests a large list of other documents. According to Marice (mentioned above) these aren’t necessary for the COVID-19 relief and if they need additional information, they will request it.

SBA EIDL – Economic Injury Disaster Loan:

  • Low interest loans through the SBA up to $2mm
  • Eligible to apply for a $10,000 loan advance that will not need to be repaid (you have to select this during your application)
  • 3.75% interest, up to 30 year term
  • Personal guarantee if over $200,000
  • Requires collateral > $25,000
  • They streamlined the application process on 3/30, and it took only a few minutes to get my application in the queue. I am awaiting a response from them for next steps and required documentation.
  • Make sure to take note of your application number and keep it on record.

CARES Act Paycheck Protection Program(click this link for an easy-to-read handout from the US Chamber of Commerce)

  • This seems almost too good to be true and hot off the press. Local bank institutions will be accepting applications in the coming days. Our banker, said she believes they should begin accepting applications by Thursday/Friday of this week. I spoke to her just a few hours ago.
  • Eligible for businesses fewer than 500 employees.
  • Loans are given up to a maximum of the lesser of $10 million, or 2.5 times the average monthly payroll costs – including wages for employees making under $100,000, as well as expenses for paid sick leave, healthcare and other benefits – during the 1-year period before the date on which the loan was made.
  • The maximum interest rate under this program is .5%
  • The loan term is 2 years
  • No personal guarantee or collateral is required for the loan
  • Payments are deferred up to six to 12 months
  • Part of this loan may be forgiven and not counted as income to you, if it’s spent during the first eight weeks on operating expenses.
  • Loans are forgiven when the proceeds are used for any of these costs:
    • Payroll costs, excluding prorated amounts for individuals with compensation greater than $100,000
    • Rent pursuant to a lease in force before February 15, 2020
    • Electricity, gas, water, transportation, telephone, or internet access expenses for services which began before February 15, 2020
    • Group health insurance premiums and other healthcare costs.
  • Be careful here. In order for the amounts to be forgiven, you must maintain the same average number of employees for the first eight-week period beginning on the origination date of the loan as you did from February 15, 2019 – June 30, 2019 or from January 1, 2020 until February 15, 2020. If you don’t meet this requirement, the amount forgiven is reduced. You incur additional reductions if you cut compensation for employees who make under $100,000 by more than 25%, as compared to the most recent quarter.
  • You won’t be penalized for a reduction in employment or wages during the period from February 15, 2020 to April 26, 2020, if you rehire employees that you previously laid off or restore any decreases in wages or salaries by June 30, 2020.

The information above is taken from this article.

Here is a list of documents for the CARE Act PPP Loan that our banker shared with me. She mentioned that this list will likely evolve over the coming days, but I would suggest getting started:

  1. 2019 IRS Quarterly 940, 941 or 944 payroll tax reports
  2. Last 12 months of Payroll Reports beginning with your last payroll date and going backwards 12 months
    1. Payroll report must show the following for the time period above:
      1. Gross wages for each employee, including the officer(s) if paid W-2 wages.
      2. Paid time off for each employee
      3. Vacation pay for each employee
      4. Family medical leave pay for each employee
      5. State and Local taxes assessed on the employee’s compensation for each employee.
  3. 1099’s for 2019 for independent contractors that would otherwise be an employee of your business.
    1. Do NOT include 1099’s for services.
  4. Documentation showing total of all health insurance premiums paid by the Company Owner under a group health plan.
    1. Include all employees and the company owners
  5. Document the sum of all retirement plan funding that was paid by the Company Owner (do not include funding that came from the employee’s out of their paycheck deferrals).
    1. Include all employees, including company owners
    2. 401K plans, Simple IRA, SEP IRA’s

Please note that the Paycheck Protection Program details related to application requirements are not yet available. In that context, the list above is subject to change.

As you all know, we are not an accounting firm, we’re a branding agency. To that end, we put together this page as a resource that will likely quickly be out of date. For the latest and most updated information, check out our client, Crippen’s, COVID landing page here.