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COVID-19 Small Business Response Resources

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Recovery & Resiliency

The Pikes Peak SBDC and Colorado SBDC Network is here to help businesses who have been affected by recent disasters in Colorado including response to the current health crisis. Our consultants and partners including the Small Business Administration (SBA) and the Colorado Office of Economic Development and International Trade (OEDIT) provide services to assist with disaster loan applications, long term planning, insurance navigation, physical and economic loss estimations, business preparedness and more. To find your local SBDC’s resources, click here.

NOTE: You have the ability to wait to accept a product or grant after you apply and are approved. Depending on your situation, a prudent action might be to apply to multiple products, then weigh options, and make informed decisions, as additional details become available. 

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Pikes Peak Region - Resources

  • Since August of 1980, Better Business Bureau of Southern Colorado has helped consumers find businesses, brands, and charities they can trust serving 25 counties throughout Southern Colorado. COVID-19, the disease caused by the novel coronavirus, is affecting people, businesses and communities around the world. Better Business Bureau reminds everyone to remain vigilant to avoid scams related to the virus, use necessary, common sense precautions when traveling, and find reliable sources to stay informed about what to do as the virus spreads. Visit your local BBB of Southern Colorado Website at https://www.bbb.org/local-bbb/bbb-of-southern-colorado .
  • The City of Colorado Springs will continue to provide essential government services while also implementing select modified operations to comply with orders and public health recommendations related to COVID-19. Those temporary changes are detailed on this site.
  • Downtown Colorado Springs shops and restaurants are taking extensive, diligent measures to provide a clean, safe and welcoming environment for customers. Downtown businesses remain open, and continue to provide a positive, safe and welcoming experience. Visit this site for #shoplocal ideas to support your downtown businesses and ALL businesses in the Pikes Peak Region.
  • The El Paso County Public Health department is keeping the public up to date on the latest via their website. Stay informed as small business owner and help stop the spread of rumors to reduce anxiety!
  • The Emergency Relief Fund for Non-Profits in El Paso and Teller County has been activated. Visit this site for more information.
  • Contributions to the “Pikes Peak Enterprise Zone (EZ) Business Relief Fund” will provide grant assistance to small businesses in the Pikes Peak EZ impacted by COVID-19. Donors will also receive an Enterprise Zone state income tax credit equal to 25% of their contribution. The application window for the Pikes Peak EZ Business Relief Fund is now closed. We are currently reviewing and evaluating all EZ small business applications that have been submitted; selected grant recipients will receive award notification in May 2020. For any additional questions, please contact the Pikes Peak EZ Administrator, Sara Lobato, at saralobato@elpasoco.com.
  • The Pikes Peak Workforce Center is keeping tabs on any local, state, and federal resources to assist small businesses and their employees if they see themselves out of a job or without pay due to business economic loss or a quarantine. It’s a good time to utilize the workforce center for any upskilling of your current employees to other job duties as necessary. Contact the Business Relations Group at 719.667.3814 or BRG@elpasoco.com
  • The Pikes Peak SBDC provides a team of experts to provide free business consulting in financials, business continuity plans, marketing, legal, HR and numerous areas of support for your emergency plans.
  • COVID-19: Resources and Travel Recommendations
  • The Colorado Springs & EDC has advocacy, informational, and technical economic development services for the Pikes Peak Region business community. The Chamber & EDC has information on state and local resources and is coordinating efforts with community partners to bring relief to businesses and recovery plans for business re-entry and long-term recovery.
  • A list of businesses, that are open, closed, by appointment and open for delivery or pickup

Information for Re-Opening

Federal Financing Options

Express Bridge Loan (EBL) Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork.

 

EBL loans can only be made by SBA Express Lenders that had a valid Supplemental Loan Guaranty Agreement SBA Express Program (SBA Form 2424) in effect as of the date of the applicable disaster.

 

Eligible small businesses are those that were located, as of the date of the applicable disaster, in the Primary Counties that have been Presidentially-declared as disaster areas, plus any Contiguous Counties. The small business must have been operational when the declared disaster commenced, and must meet all other 7(a) loan eligibility requirements.

 

Terms:

 

  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan

 

Find an Express Bridge Loan Lender via SBA’s Lender Match Tool or by connecting with your local SBA District Office.

As part of SBA’s debt relief efforts, the SBA will automatically pay the principal, interest, and fees of current 7(a) loans for a period of six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a) loans issued prior to September 27, 2020.

  • Available for all 7a loans (including Community Advantage Loans) loan except Paycheck Protection Loans
  • The SBA shall pay all principal and interest on existing 7a, 504 and microloans made before this act was passed that are not on deferment for 6 months starting with the next payment
  • For deferred loans, the SBA payments start after the deferment period ends
  • Lenders may extend the maturity for loans by one year even beyond normal statutory max when deferment occurs
  • NOTE: This is for borrowers who already had 7a loans in place before COVID-19
  • Available for all existing 7a, 504 and microloans (including Community Advantage Loans) loan except Paycheck Protection Loans
  • This is for borrowers who already had SBA loans in place before COVID-19
  • Does not apply to new 7a loans made after this act was passed which are covered by EIDL Loans or Paycheck Protection Loans
  • Businesses that engage in activities not legal under federal law (Marijuana)

For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.

 

What does an “automatic deferral” mean to borrowers?

 

  • Interest will continue to accrue on the loan.
  • 1201 monthly payment notices will continue to be mailed out which will reflect the loan is deferred and no payment is due.
  • The deferment will NOT cancel any established Preauthorized Debit (PAD) or recurring payments on your loan. Borrowers that have established a PAD through Pay.Gov or an OnLine Bill Pay Service are responsible for canceling these recurring payments. Borrowers that had SBA establish a PAD through Pay.gov will have to contact their SBA servicing office to cancel the PAD.
  • Borrowers preferring to continue making regular payments during the deferment period may continue remitting payments during the deferment period. SBA will apply those payments normally as if there was no deferment.
  • After this automatic deferment period, borrowers will be required to resume making regular principal and interest payments. Borrowers that cancelled recurring payments will need to reestablish the recurring payment.

 

If you have questions about your current loan and whether or not your loan is automatically deferred, please contact your Loan Servicing Office directly using the following information:

Birmingham Disaster Loan Servicing Center
Phone: 800-736-6048
Email: BirminghamDLSC@sba.gov

El Paso Disaster Loan Servicing Center
Phone: 800-487-6019
Email: ElPasoDLSC@sba.gov

A payroll tax credit for wages paid by businesses that fully or partially close due to Coronavirus. The Federal Government is working diligently on developing the application process for these loans and we will let individuals know that information when it is released and applications are open.

  • A credit against 50% of payroll taxes on qualified wages per quarter (the employer share of Social Security taxes) for any quarter in which the business is fully or partially suspended or in which there was a significant revenue decline in 2020
  • The credit is refundable
  • For businesses with more than 100 employees, only wages for employees that are not still working are eligible
  • Credit only applies to a max of $10K per employee
  • Wages for any employee for which the credit applies may not exceed wages the employee received in the 30 day period previous.
  • Businesses receiving other EIDL or Paycheck Protection Loans would not be eligible.
  • Any business that partially or fully closed during the Coronavirus crisis or that experiences significant revenue declines due to the virus.
  • Self-employed individuals that similarly qualify

PPP & EIDL Loans

Funding for the Paycheck Protection Program has been fully expended. The SBA is currently unable to accept new applications for the Paycheck Protection Program. The EIDL program is no longer accepting new applications and applications previously submitted for an EIDL Cash Advance and loan will continue to be processed on a first come, first served basis.

Both the U.S. Small Business Administration and the U.S. Treasury are urging Congress to appropriate additional funds into these programs so that every small business who is eligible will have the chance to participate and receive the funds they need.

Business owners should remain in contact with their lender and make sure they have the documentation necessary to complete the PPP application in the event congress appropriates additional funding to continue the program.

Quick Links

  • Most small businesses including Sole Proprietors, Partnerships, LLC, Corporation, Joint Venture, Association, Trust, Cooperative, small agricultural cooperative, aquaculture, and most private non-profits.
  • Applicants must meet the SBA requirements of a small business (500 employees or fewer).
  • The size of the applicant alone (without affiliates) must not exceed the size standard for the industry in which the applicant is primarily engaged and;
  • The size of the applicant combined with its affiliates must not exceed the size standard designated for either the primary industry of the applicant alone or the primary industry of the applicant and its affiliates, whichever is higher.
  • Business has physical presence within the declared disaster area
  • Businesses directly affected by COVID-19 and have suffered or are likely to suffer substantial economic injury
  • Business must be independently owned and operated
  • Businesses that offer services directly related to the businesses in the declaration
  • Other businesses indirectly related the industry that are likely to be harmed by losses in their community (Example: Manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product)
  • Unable to obtain credit elsewhere
  • Business that is not considered small under SBA guidelines
  • Lending and investment concerns (except for real estate investments held for rental)
  • Loan packagers who derive more than 1/3 of their annual volume from the preparation of applications seeking financial assistance from the SBA
  • Multi-level sales distribution (Pyramid)
  • Speculative Activities
  • Agricultural Enterprises: If the primary activity of the business (including its affiliates) is as defined in Section 18(b)(1) of the Small Business Act, neither the business nor its affiliates are eligible for EIDL assistance.
  • Religious Organizations
  • Charitable Organizations and non profit organizations that are not considered a Private Non-Profit
  • Gambling Concerns (Ex: Concerns that derive more that 1/3 of their annual gross revenue from legal gambling activities)
  • Casinos & Racetracks (Ex: Businesses whose purpose for being is gambling (e.g., casinos, racetracks, poker parlors, etc.) are not eligible for EIDL assistance regardless of 1/3 criteria above.
  • Cannabis Industry
  • Consumer and Marketing Cooperatives
  • Political or lobbying concerns
  • Pawn shops
  • Real estate developers
  • Life insurance companies
  • Concerns engaged in illegal activities (as defined by Federal guidelines)
  • Government-owned concerns (except for businesses owned or controlled by a Native American tribe)
  • Concerns with principals incarcerated, on parole or probation
  • Concerns engaged in live performances of, or the sale of products, services of a prurient sexual nature
  • Businesses considered as hobbies
  • Businesses not located in the declared disaster area
  • Business has credit available elsewhere
  • Concerns involved in change in ownership situations
  • Concerns established post-disaster
  • Feedlot operators
  • Agricultural enterprises
  • Members of congress
  • Credit History: Applicants must have a credit history acceptable to SBA.
  • Repayment: SBA must determine that the applicant business has the ability to repay the SBA loan.
  • Eligibility: The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.
  • Eligible entities may qualify for loans up to $2 million. 
  • The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years. 
  • Eligibility for these working capital loans are based on the size (must be a small business) and type of business and its financial resources.  

These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion. Funds cannot be used to pay down long-term debt.

  • Completed SBA loan application (SBA Form 5).
  • Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates.
  • Complete copies of the most recent Federal Income Tax Return.
  • Schedule of Liabilities (SBA Form 2202).
  • Personal Financial Statement (SBA Form 413).
  • Income, balance sheet, and cash flow documents.
  • Other Information may also be requested.

Download this PDF on how to apply as well as this helpful checklist of documents needed for the EIDL application.

  • Complete copy, including all schedules, of the most recent Federal income tax return for principals, general partners or managing members, and affiliates (see filing requirements for more information)
  • If the most recent Federal income tax return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year
  • A current year-to-date profit-and-loss statement
  • Additional Filing Requirements (SBA Form 1368) providing monthly sales figures (This is especially important for Economic Injury Disaster Loans)
  • Small businesses that submit complete loan packages could receive the money within three (3) weeks
  • Incomplete information and verification of collateral will delay the approval process
  • Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloan.sba.gov/ela
  • Paper loan applications can be downloaded from www.sba.gov/disaster. Completed applications should be mailed to:
    U.S. Small Business Administration
    Processing and Disbursement Center
    14925 Kingsport Road
    Fort Worth, TX 76155
  • Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov.

Borrowers can apply for both an SBA Economic Injury Disaster Loan and the Paycheck Protection Program loan. However, the Paycheck Protection Program loan funds and the Economic Injury Disaster Loan funds cannot be used for the same purpose. The Paycheck Protection Program loan must be used for payroll (minimum of 75% of the funds received) for it to be eligible for a forgivable loan and the remaining is used for different purposes. Borrowers who accept both loan funds should document the uses of the funds appropriately.

Select the loan program that best meets your individual business needs; however, you are not permitted to hold funds from both programs for the same purpose.

The PPP loan has different terms from the EIDL loan. The Paycheck Protection Program’s maximum loan amount is $10 million with a fixed 1% interest rate and maturity of two years.

Economic Injury Disaster Loan assistance provides up to $2 million loan per business and are long-term, low-interest rate at 3.75% for businesses and 2.75% for non-profits and a maturity of up to 30 years

The application period for PPP loans runs through June 30, 2020, but the EIDL application period runs through December 2020. If you have working capital need beyond what is provided by PPP, you can apply for additional assistance through the EIDL program.

If you are applying for both, you can accept PPP first – then decide whether to close on your EIDL approved loan. An EIDL approved loan may be closed within 60 days, and the borrower can choose whether to close on the loan. The EIDL application period runs through Dec. 2020.

Yes, you are still eligible to apply for the Paycheck Protection Program even if you applied for or received an SBA Economic Injury Disaster Loan.

If your Economic Injury Disaster Loan was not used for payroll costs, it does not affect your eligibility for a Paycheck Protection Program loan.

If your Economic Injury Disaster Loan was used for payroll costs, your Paycheck Protection Program loan must be used to refinance your Economic Injury Disaster Loan. The Paycheck Protection Program’s maximum loan amount is $10 million with a fixed 1% interest rate and maturity of two years. Economic Injury Disaster Loan assistance provides up to $2 million loan per business and are long-term, low-interest rate at 3.75% for businesses and 2.75% for non-profits and a maturity of up to 30 years

Any advance up to $10,000 on the Economic Injury Disaster Loan will be deducted from the loan forgiveness amount of the Paycheck Protection Program loan.

For example, a borrower may obtain a loan from the Paycheck Protection Program and use those funds to pay for 8 weeks of payroll or employee retention. They may wish to then dedicate their entire EIDL funds towards working capital, notes payable and accounts payable that do not duplicate the funds provided through the Paycheck Protection Program. If the EIDL loan was used for payroll expenses, the borrower must refinance the EIDL loan with the PPP loan which carries a lower interest rate as well as a shorter maturity period.

It depends on how the chamber is set up to run. If it’s a private non-profit that can show the capacity to repay the loan. They yes, they are eligible. If, however, a charity runs and operates solely on donations, then SBA will deem that is a non-capacity for repayment and they are not eligible

Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://covid19relief.sba.gov/#/
Paper loan applications can be downloaded from www.sba.gov/disaster. Completed applications should be mailed to:
U.S. Small Business Administration
Processing and Disbursement Center
14925 Kingsport Road
Fort Worth, TX 76155
Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339) for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov.
To check the status of your application, please visit this link here

To check the status of your application please either call 800-659-2955 (800-877-8339) for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov.

Difference between PPP and EIDL


The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

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.

Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.

  • 100 percent guaranteed SBA loans, a portion of which SBA will forgive based on allowable expenses for the borrower.
  • Loans to be made by approved private sector SBA lenders between Feb 15 and December 31, 2020
    • Private Lender does not need to consider repayment ability for eligibility, instead: the borrower must be in operation by Feb 15, 2020, and have W2 employees or 1099 contractors
    • Lenders must defer payments on principal interest and fees for at least 6 months and up to a year
  • The maximum loan amount is $10M
  • The maximum loan amount is $10M
  • Permitted use of proceeds are salary, benefits, payroll costs, payments on mortgages or existing loans, rent, and utilities
  • Delegated Authority private lender makes credit decisions without normal full SBA review
  • These loans can be stacked with EIDL loans to cover other costs besides permitted proceeds if there is need
  • Loan recipient must certify they were hurt by economic conditions and will use proceeds as permitted
  • Prepayment penalties and affiliation rules for accommodation, food services, and franchises are waived.
  • A small business with fewer than 500 employees
  • A small business that otherwise meets the SBA’s size standard
  • A 501(c)(3) with fewer than 500 employees
  • An individual who operates as a sole proprietor
  • An individual who operates as an independent contractor
    An individual who is self-employed who regularly carries on anytrade or business
  • A Tribal business concern that meets the SBA size standard
  • A 501(c)(19) Veterans Organization that meets the SBA size standard

In addition, some special rules may make you eligible:

  • If you are in the accommodation and food services sector (NAICS 72),
  • the 500-employee rule is applied on a per physical location basis
  • If you are operating as a franchise or receive financial assistance from an approved Small Business Investment Company the normal
  • Affiliation rules do not apply
  • Businesses or nonprofits that have laid-off workers (and not rehired them by April)
  • Businesses with over 500 employees
  • Businesses that intend to use the loan for Immediate cash flow needs
  • Businesses that cannot maintain payroll for six months due to ongoing economic impacts of the virus would not be able to receive forgiveness
  • Businesses that are affiliated to larger businesses (may disqualify VC or PE funded businesses) except those waived
  • Businesses that engage in activities not legal under federal law (Marijuana)

Affiliation rules become important when SBA is deciding whether a business’s affiliations preclude them from being considered “small.” Generally, affiliation exists when one business controls or has the power to control another or when a third party (or parties) controls or has the power to control both businesses. Please see this resource for more on these rules and how they can impact your business’s eligibility.

In general, 501(c)(3) and 501(c)(19) non-profits with 500 employees or fewer as most nonprofit SBA size standards are based on employee count, not revenue. You can check here.

Depending on your business’s situation, the loan size will be calculated in different ways (see below). The maximum loan size is always $10 million.

  • If you were in business February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs during that time period. If your business employs seasonal workers, you can opt to choose March 1, 2019 as your time period start date.
  • If you were not in business between February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs between January 1, 2020 and February 29, 2020.
  • If you took out an Economic Injury Disaster Loan (EIDL) between February 15, 2020 and June 30, 2020 and you want to refinance that loan into a PPP loan, you would add the outstanding loan amount to the payroll sum.

Additional information on how to calculate maximum loan amounts by business type here.

  • Compensation (salary, wage, commission, or similar compensation, payment of cash tip or equivalent)
  • Payment for vacation, parental, family, medical, or sick leave
  • Allowance for dismissal or separation
  • Payment required for the provisions of group health care benefits, including insurance premiums
  • Payment of any retirement benefit
  • Payment of State or local tax assessed on the compensation of employees
  • Employee/owner compensation over $100,000
  • Taxes imposed or withheld under chapters 21, 22, and 24 of the IRS code
  • Compensation of employees whose principal place of residence is outside of the U.S.
  • Qualified sick and family leave for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act
  • Payroll costs (as noted above)
  • 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 (see exclusions above)
  • 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
  • Interest on any other debt obligations that were incurred before the covered period

For any amounts not forgiven, the maximum term is 10 years, the maximum interest rate is 4 percent, zero loan fees, zero prepayment fee (SBA will establish application fees caps for lenders that charge).

Forgiveness on a covered loan is equal to the sum of the following payroll costs incurred during the covered 8 week period compared to the previous year or time period, proportionate to maintaining employees and wages (excluding compensation over $100,000):

Payroll costs plus any payment of interest on any covered mortgage obligation (not including any prepayment or payment of principal on a covered mortgage obligation) plus any payment on any covered rent obligation plus and any covered utility payment.

You must apply through your lender for forgiveness on your loan. In this application, you must include:

  • Documentation verifying the number of employees on payroll and pay rates, including IRS payroll tax filings and State income, payroll and unemployment insurance filings.
  • Documentation verifying payments on covered mortgage obligations, lease obligations, and utilities.
  • Certification from a representative of your business or organization that is authorized to certify that the documentation provided is true and that the amount that is being forgiven was used in accordance with the program’s guidelines for use.

Any loan amounts not forgiven are carried forward as an ongoing loan with max terms of 10 years, at a maximum interest rate of 4%. Principal and interest will continue to be deferred, for a total of 6 months to a year after disbursement of the loan. The clock does not start again.

No, an entity is limited to one PPP loan. Each loan will be registered under a Taxpayer Identification Number at SBA to prevent multiple loans to the same entity.

Borrowers may apply for PPP loans and other SBA financial assistance, including Economic Injury Disaster Loans (EIDLs), 7(a) loans, 504 loans, and microloans, and also receive investment capital from Small Business Investment Corporations (SBICs). However, you cannot use your PPP loan for the same purpose as your other SBA loan(s). For example, if you use your PPP to cover payroll for the 8-week covered period, you cannot use a different SBA loan product for payroll for those same costs in that period, although you could use it for payroll not during that period or for different workers.

Emergency Economic Injury Grant and Economic Injury Disaster Loan (EIDL) recipients and those who receive loan payment relief through the Small Business Debt Relief Program may apply for and take out a PPP loan as long as there is no duplication in the uses of funds. Refer to those sections for more information.

Borrowers can apply for both an SBA Economic Injury Disaster Loan and the Paycheck Protection Program loan. However, the Paycheck Protection Program loan funds and the Economic Injury Disaster Loan funds cannot be used for the same purpose. The Paycheck Protection Program loan must be used for payroll (minimum of 75% of the funds received) for it to be eligible for a forgivable loan and the remaining is used for different purposes. Borrowers who accept both loan funds should document the uses of the funds appropriately.

Yes, you are still eligible to apply for the Paycheck Protection Program even if you applied for or received an SBA Economic Injury Disaster Loan.

If your Economic Injury Disaster Loan was not used for payroll costs, it does not affect your eligibility for a Paycheck Protection Program loan.

If your Economic Injury Disaster Loan was used for payroll costs, your Paycheck Protection Program loan must be used to refinance your Economic Injury Disaster Loan. The Paycheck Protection Program’s maximum loan amount is $10 million with a fixed 1% interest rate and maturity of two years. Economic Injury Disaster Loan assistance provides up to $2 million loan per business and are long-term, low-interest rate at 3.75% for businesses and 2.75% for non-profits and a maturity of up to 30 years

Any advance up to $10,000 on the Economic Injury Disaster Loan will be deducted from the loan forgiveness amount of the Paycheck Protection Program loan.

For example, a borrower may obtain a loan from the Paycheck Protection Program and use those funds to pay for 8 weeks of payroll or employee retention. They may wish to then dedicate their entire EIDL funds towards working capital, notes payable and accounts payable that do not duplicate the funds provided through the Paycheck Protection Program. If the EIDL loan was used for payroll expenses, the borrower must refinance the EIDL loan with the PPP loan which carries a lower interest rate as well as a shorter maturity period.

Select the loan program that best meets your individual business needs; however, you are not permitted to hold funds from both programs for the same purpose.

The PPP loan has different terms from the EIDL loan. The Paycheck Protection Program’s maximum loan amount is $10 million with a fixed 1% interest rate and maturity of two years.

Economic Injury Disaster Loan assistance provides up to $2 million loan per business and are long-term, low-interest rate at 3.75% for businesses and 2.75% for non-profits and a maturity of up to 30 years

The application period for PPP loans runs through June 30, 2020, but the EIDL application period runs through December 2020. If you have working capital need beyond what is provided by PPP, you can apply for additional assistance through the EIDL program.

If you are applying for both, you can accept PPP first – then decide whether to close on your EIDL approved loan. An EIDL approved loan may be closed within 60 days, and the borrower can choose whether to close on the loan. The EIDL application period runs through Dec. 2020.

See the overall process here. Find eligible lenders here. First check with your local lender on PPP guidance. If you cannot find a local lender on this list, check with the local SBA District Office.

If you do not have a relationship with a lender, Community Reinvestment Fund is accepting applications for PPP Loans.

COVID-19 Resources

  • The Small Business Navigator is the first point of contact for new and existing business owners with questions about federal, state and local licensing requirements. The navigator also provides referrals to a variety of state and federal assistance programs and local small business training. In addition, the navigator maintains a comprehensive database of federal, state and local regulatory and permitting requirements. SMALL BUSINESS COVID-19 DISASTER RESPONSE HOTLINE: 303-860-5881 ((OPEN MONDAY-FRIDAY 8AM-5PM))
  • The Colorado SBDC Networking is regularly hosting webinars to guide you through the COVID-19 emergency response and preparedness.
  • Visit this website for the latest information for employers and workers. Website links include information on: - Paid Sick Leave for COVID-19 - Workplace Preparedness - Information from the Division of Federal Employees Compensation (DFEC)
  • Find details on the latest leave with pay rules and industry specifics.
  • The Colorado Department of Public Health and Environment is a great resource to keep up on the latest throughout the state of Colorado.
  • There have been a number of executive orders and public health orders released by the governor this month and the legal language used can be hard to understand. We have provided this information, written for the rest of us, about what they mean and who is affected.
  • Support CO Local is helping local businesses in Colorado sell gift cards in order for them to keep revenue coming in during their closure for the COVID-19.
  • Gov. Polis announced a statewide stay-at-home order beginning on Thursday, March 26 at 6:00 a.m. that will last until April 11, 2020. Businesses deemed as critical can remain open, but are subject to social distancing requirements. Click here for an FAQ and List of Critical Businesses
  • The resources at choosecolorado.com provide state and federal COVID-19 announcements, programs, and information relevant to Colorado businesses.
  • USDA Rural Development has taken a number of immediate actions to help rural residents, businesses and communities affected by the COVID-19 outbreak. Rural Development will keep our customers, partners, and stakeholders continuously updated as more actions are taken to better serve rural America.
  • Below is a list of resources that are generally available to Colorado tenants who may be struggling to pay some of their rent amid Coronavirus. The organizations are broken down by state, state nonprofit, county and city resources. The organizations in the list below are not affiliated with the Colorado Apartment Association or any of its subsidiaries.
  • Executive Order D 2020 017 “Ordering Coloradans To Stay at Home Due to the Presence of COVID-19 in the State,” and the corresponding Public Health Order 20-24 Amended Public Health Order 20-24 Implementing Stay at Home Requirements (PHO 20-24) exempt critical businesses. Please see PHO 20- 24 for the complete and current list of authorized businesses that are exempt.
  • Executive Order D 2020 013 “Ordering Colorado Employers To Reduce In-Person Workforce by Fifty Percent Due to the Presence of COVID-19 in the State,” and the corresponding Public Health Order 20-24 Implementing Fifty Percent Reduction in Nonessential Business In-Person Work and Extreme Social Distancing (PHO 20-24), require that businesses that do not meet the definition of a “Critical Business” reduce their in-person work by fifty percent (50%) to help mitigate the spread of novel Coronavirus 2019 (COVID-19).
  • Please consult the following lists for guidance concerning the “critical” versus “non-critical” designations of DORA-regulated professions and services in light of the COVID-19 crisis. Once you have located your professional license type, we encourage you to read any associated Executive or State-Issued Public Health Orders for further direction, and to be aware of the Statewide “Stay-at-Home” Order issued by Governor Jared Polis, effective March 26 through April 11, 2020, as well as any county or city specific health or “stay-at-home” orders. Other COVID-related communications and notifications, separated by profession, can be found on DORA’s website.
  • Now is the moment for us to come together to support our state and buy local food, groceries and goods. Colorado Proud has put together the following list of Colorado farmers, ranchers, retailers, chefs, restaurants, and food and beverage manufacturers providing food, products and services direct to consumers.
  • There’s a ton of information coming your way as a small business owner, and the information you just read will most likely change tomorrow. Trust us, we get it, and we’re here to help. Every Friday, you can access the latest information and resources directly from the top, in one 60-minute call, on a consistent weekly basis. Calls are organized by region so that you can get the latest information relevant to your business and area of operation.
  • Philanthropy Colorado has been working to connect funders across the state and ensure the sector has the most up-to-date information about nonprofit needs, relief funds and resources.
  • Executive Order D2020 051 signed by Governor Jared Polis on April 30 placed a moratorium on evictions and late fees for failure to pay rent that will expire on May 30, unless it is extended. The same executive order grants the Colorado Department of Local Affairs (DOLA), Division of Housing (DOH) the authority to provide a template for renters and landlords to make payment arrangements, which may be initiated by either party to prevent late amounts from becoming immediately due when the moratorium expires.
  • This interim guidance is based on what is currently known about the coronavirus disease 2019 (COVID-19). The Centers for Disease Control and Prevention (CDC) will update this interim guidance as needed and as additional information becomes available.
  • The U.S. SBA is offering designated states and territories low-interest federal disaster loans for working capital. Read about the process here. STATUS: Applications now open
  • Cleaning of visibly dirty surfaces followed by disinfection is a best practice measure for prevention of COVID-19 and other viral respiratory illnesses in community settings.
  • If you receive calls, emails, or other communications claiming to be from the Treasury Department and offering COVID-19 related grants or stimulus payments in exchange for personal financial information, or an advance fee, tax, or charge of any kind, including the purchase of gift cards, please do not respond.
  • The IRS is extending the federal income tax filing deadline to July 15 as part of a growing effort to stem the financial pain from the coronavirus pandemic - announced Treasury Secretary Steven Mnuchin today.- The news has been verified via multiple news agencies. The IRS site has not been updated. Secretary Mnuchin urged those getting a return to file now to receive their return as soon as possible.
  • Contracting
    If a situation occurs that will prevent small businesses with federal government contracts from successfully performing, they should reach out to their contracting officer and seek extensions before they receive cure notices or threats of termination.
  • The U.S. Chamber has compiled CDC’s coronavirus recommendations for businesses and workers across the country. We continue to encourage American businesses to follow data-based guidance from the CDC and state and local officials.
  • U.S. CBP has created this webpage for updates, information and impacts on trade due to the outbreak of COVID-19.
  • EXIM is committed to fully supporting the U.S. exporting community during this crisis. This page will be updated with any information about EXIM's response activities.
  • On March 27, 2020, the president signed the CARES Act into law, which, among other things, provides broad relief for federal student loan borrowers.
  • USDA and its Federal partners have programs that can be used to provide immediate and long-term assistance to rural communities affected by the COVID-19 outbreak.

Business Interruption insurance normally covers the replacement of lost income when operations are halted during a natural disaster such as a fire. It covers operating expenses, a move to a temporary location, payroll, taxes and loan payments. The Coronavirus pandemic is uncharted territory and until we know more about what insurances companies should cover, here are some steps to advocate for yourself:

1. Ask your agent to file a claim with the carrier even if they tell you that your business is not covered.
2. When you receive the declination document, write a letter to the carrier and tell them why you are disputing the declination (be specific)
3. If declined again, connect with an independent insurance specialist and see if the next step should be to file a request for help with the Colorado Division of Insurance at https://www.colorado.gov/pacific/dora/ask-question-make-complaint-division-insurance

If your business is facing eviction, reach out to the Colorado Department of Regulatory Agencies (DORA) for assistance. Learn more about DORA’s efforts. If you need legal support, the Justice Center is offering free legal aid for businesses affected by COVID-19 on Wednesday nights.

As the news spreads about Corona Virus (COVID-19), many businesses have questions about whether they can shut down sites where the infection is present or conduct a preemptive shut-down of sites where there is no infection to safeguard the health of their employees. Businesses are asking, “will their employees be eligible for unemployment insurance benefits during the temporary shutdown”?

The answer is, if an employer stops work (for whatever reason), it is considered a layoff or partial separation. Employees during the temporary shut-down may file a claim to collect unemployment insurance benefits as job attached claimants. They would still be required to meet the eligibility requirements during any weeks they claimed.

Job Attached Layoff

Job attached means that you are expected to return to your most recent employer after a separation of up to 16 weeks. If you are job attached, your work-search requirements may be waived, but you must be available to return to work during this time frame. Union attached is the same except the union must find work for you within 16 weeks.

If your work-search requirements are not waived, keep in mind, we may conduct an audit of your claim up to two years from the start of your claim and you may be asked to provide your work-search documentation at that time. If you are unable to produce your work-search documents with all requirements met, you may be denied unemployment and may have to pay back any benefits already received for those weeks.

The Work-Share Program

Thinking of laying off employees? Consider the Work-Share Program.

The Work-Share Program provides an alternative to laying off employees by allowing them to keep working, but with fewer hours. While an employee is working fewer hours, he or she may be eligible to collect part of his or her regular unemployment benefits.

Requirements and qualifications for employers:

 

  • You must have reduced the normal weekly work hours by at least 10 percent, but by no more than 40 percent.
  • The reduction must affect at least two out of all employees in the business, or a minimum of two employees in a certain unit.
  • You must have paid as much in premiums as we paid your former employees in unemployment insurance benefits. See the rate notice mailed in November.

Several entities are starting grant programs to specifically assist businesses being affected by COVID-19. 

  • The Pikes Peak Enterprise Zone (EZ) Business Relief Fund will help small businesses, struggling to sustain operations, with critical funding necessary to maintain their workforce and recover during and after this public health emergency. Unlike loans, small businesses awarded this grant, won’t have to pay it back. They can use the funding for essential needs such as rent or mortgage assistance, utility payments, employee payroll, and payment of fixed debts. The application window for the Pikes Peak EZ Business Relief Fund is now closed. The goal is to start allocating grants to eligible businesses in May 2020.
  • Grants up to $10,000 to small businesses - The next round of grants open up on May 14
  • JPMorgan Chase announced a $50 million global philanthropic commitment to address the immediate public health and long-term economic challenges from the COVID-19 global pandemic. $8 million to assist small businesses vulnerable to significant economic hardships in the U.S., China and Europe.
  • The Colorado COVID Relief Fund’s purpose is to raise and coordinate allocation of funds based on prevention, impact and recovery needs of community-based organizations in Colorado. This Fund is organized to ensure that the most acute community needs across the state are being addressed and that community voice is reflected in all funding decisions made over time.
  • Facebook announced a $100 million program to help small businesses as governments throughout the country urge gyms and restaurants to close their doors to slow the coronavirus pandemic.
  • El Pomar Foundation announced the establishment of the Colorado Assistance Fund (CAF). CAF is a $1 million fund offering immediate aid to nonprofit organizations supporting Colorado communities, organizations and individuals affected by the recent outbreak of COVID-19.
  • The nonprofit organization Kiva provides 0% interest loans to small businesses worldwide. They are expanding eligibility and the amount of loans provided during this crisis.
  • Join QuickBooks and GoFundMe as they combine forces to support small businesses across the country. Intuit QuickBooks is seeding this initiative with up to $1 million through a fund and employee-directed contributions.
  • The COVID-19 CO Creatives Relief Grant is a one-time payment to non-profit arts organizations in Colorado with an annual operating budget of less than $1 million.
  • Survive & Thrive COS provides recovery funding for local small businesses in the form of low-interest loans of up to $25,000, mentorship and other resources to support resiliency and continue building healthy businesses and nonprofits.
  • Provides assistance to small farmers who operate less than 500 acres, have limited resources and reside in the US. This fund is temporarily CLOSED. Keep checking back for updates.
  • Spanx is offering $5M in grants to female entrepreneurs.
  • SheaMoisture is offering a $1M relief fund for businesses owned by women of color.
  • eBay announced the launch of "Up & Running," an accelerator program aimed at helping retailers without an e-commerce presence transition to selling online. The e-commerce platform is pledging $100 million to support North American small businesses.
  • This program is no longer accepting applications are in the process of awarding grants! Click on this link to find additional resources.
  • The Colorado Office of Economic Development and International Trade (OEDIT) has put together a list of different funding options for small businesses.

The Coronavirus, Aid, Relief and Economic Security Act (CARES Act) allows employers to defer the deposit and payment of the employer’s share of Social Security taxes and self-employed individuals to defer payment of certain self-employment taxes. Learn More from the IRS.

Trade and travel advisories are developed by the US Customs and Border Patrol.

Industry-Specific Resources

COVID-19 Recursos para Pequeños Negocios

Resiliency

El Paso & Teller County Updates

PPP vs. EIDL

Colorado SBDC COVID-19 Disaster Response Webinars

CARES ACT: Emergency Relief Guide & Checklist

COVID Small Business Resource Quick Guide

Download this guide for a quick look at the latest in response resources for small businesses.

Watch the Video!

PPSBDC In the News

Loans, grants available for struggling small businesses

COLORADO SPRINGS — With the $2 trillion coronavirus stimulus bill passed into law there's about $350 billion that will go toward loans for small businesses.

Resource Videos & Webinars

Play Video
EIDL Application Instructions

Step by step process in how to apply for the SBA EIDL

Play Video
EIDL Application Instructions for Non-Profits

Step by step process in how to apply for the SBA EIDL for non-profits

Guide to Applying for PPP Loan

Colorado Lending Source and Denver Metro SBDC take a closer look into the applying for the PPP Loans

Play Video
Keeping Your Business Together in a Crisis: Financial Health

The Boulder SBDC provides tips on how to keep the financial health of your business during the COVID-19 crisis

Play Video
Keeping Your Business Together in a Crisis: Defensive Marketing

The Boulder SBDC provides tips on creative marketing ideas during the COVID-19 crisis

CARES Act Impact on Small Business

The Denver SBDC takes a closer look into the CARES Act

 

Play Video
Planning for 7/15 Deadline + Estimate Payments

Understand what affect the COVID-19 outbreak has on your 2019 taxes

Play Video
Paycheck Protection Program + Families First Coronavirus Response Act

What the PPP and Families First programs mean for businesses

Play Video
COVID Relief for COS Downtown Restaurant, Service + Retail Businesses

Federal and local COVID-19 relief options for restaurants, bars, salons and retail

Play Video
Coronavirus Aid, Relief and Economic Security Act (The CARES Act)

Latest news on the CARES Act

COVID-19 Financial Support for Gig Workers & Small Businesses: How to Get Your Money
EIDL Application Instructions for 1099

Step by Step instructions on how to apply for EIDL as a 1099.

EIDL Application Instruction for Business Affiliates

Step by step instructions on how to apply for EIDL as a business affiliate

EIDL Instrucciones para Completar la Solucitud

Préstamo de Impacto Económico por Desastre Instrucciones para Completar la Solucitud

Business Resiliency: Keeping the Lights On

Join Grow with Google and America’s SBDC to learn how an actionable business resiliency plan could mean the difference between business continuity or closure.

Northeast Small Business Resource Webinar

Focus on Farmers Markets

Southeast Small Business Resource Webinar

Focus on Farmers Markets

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