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.
Current Business Guidelines
Pikes Peak Region - Resources
Federal Financing Options
Updated: 1/8/21 @ 6:41 pm
- Community Financial Development Institution (CDFI)
- Minority Depository Institution (MDI)
- Community Development Corporation (CDC)
- Microlender Intermediary
- 1st Draw PPP Loans: For qualified recipients that have not previously received a PPP loan
- 2nd Draw PPP Loans: For qualified recipients that have previously received a PPP loan
- Eligible PPP expenses for forgiveness have been expanded
- Guidance on Accessing Capital for Minority, Under served, Veteran and Women-Owned Businesses
- Changes to Employee Retention Tax Credit
- EIDL and the EIDL Advance program are re-opening for target areas. Information is forthcoming from SBA.
- Shuttered Venue Grants: Businesses who qualify for this grant cannot receive this grant and new PPP funds. They will need to make a decision as to which funding source makes the most sense for their business.
Section 31: Targeted EIDL Advance for Small Business Continuity, Adaptation, and Resiliency
- Provides additional targeted funding for eligible entities located in low-income communities through the
EIDL Advance program from Section 1110 of the CARES Act
- Makes entities in low-income communities that received an EIDL Advance under Section 1110 of the
CARES Act eligible to receive an amount equal to the difference of what the entity received under the
CARES Act and $10,000.
- Provides $10,000 grants to eligible applicants in low-income communities that did not secure grants
because funding had run out
Section 32: Emergency EIDL Grants.
- Extends covered period for Emergency EIDL grants through December 31, 2021.
- Allows more flexibility for the SBA to verify that Emergency EIDL grant applicants have submitted accurate
- Extends time for SBA to approve and disburse Emergency EIDL grants from 3 to 21 days.
Section 33: Repeal of EIDL Advance Deduction.
- Repeals section 1110(e)(6) of the CARES Act, which requires PPP borrowers to deduct the amount of their EIDL advance from their PPP forgiveness amount.
- Establishes the Sense of Congress that EIDL Advance borrowers should be made whole without regard to
whether those borrowers are eligible for PPP forgiveness.
- The Administrator shall issue rules that ensure borrowers are made whole if they received forgiveness
and their EIDL was deducted from that amount.
Small business owners and qualified agricultural businesses in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19).
Agricultural businesses with 500 or fewer employees are now eligible as a result of new authority granted by Congress in response to the COVID-19 pandemic.
Agricultural businesses include those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
- 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.
- 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 firstname.lastname@example.org.
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 60% 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 has a maximum loan amount of $2 million (or 2.5x the average monthly payroll or 3.5x if a business is in NAICS Code 72) 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 reopen the week of January 11 – March 31, 2021, and the EIDL application period runs through December 31, 2021. 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 Decemeber 31, 2021.
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 $2 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 NOT 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
It is alleged that Congressional intent is that Entities in low income communities that received the advance before ($1,000 per employee) can now receive the difference up to $10,000. More info on this to come. Final rules are not out yet.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://www.sba.gov/funding-programs/disaster-assistance/economic-injury-disaster-loans
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 email@example.com.
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 firstname.lastname@example.org.
Difference between PPP and EIDL
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.
- Up to $25,000
- Fast turnaround
- Will be repaid in full or in part by proceeds from the EIDL loan
The Economic Aid Act as of 1/9/2021 (SUBJECT TO CHANGE UNTIL FINAL RULES ARE PROVIDED):
- Temporarily enhances the terms of the 7(a) loan program by increasing the loan guarantee to 90 percent and
offering reduced or no fees for the borrower and the lender. Additionally, it would temporarily increase the
7(a) express loan limit and loan guarantee to provide access to needed working capital.
- Temporarily eliminates fees for the 504 loan program and favorable terms for refinancing loans.
- Increases the aggregate loan limit for microloan intermediaries in order to ensure intermediaries have
increased capacity to make loans to underserved and underbanked borrowers.
- Extends the Small Business Debt Relief program, Section 1112 of the CARES Act, which would defer
payments of principal and interest on new and existing SBA 7(a), 504, and Microloan programs for eligible
- Stay tuned for final details include assistance to underserved borrowers.
- Other Disaster Loans – deferred payments extended to March 2021.
- 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:
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
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
Applications Now Open for 2021 Pikes Peak Small Business COVID-19 Relief Program
This new grant program, created from state funding, is intended to provide additional financial support to businesses hardest hit by the pandemic.
The state has identified that this program will prioritize restaurants, bars (including breweries, wineries, and distilleries), caterers, movie theatres, gyms, and recreation centers. To qualify, businesses in those categories must have experienced at least a 20 percent reduction in revenue due to the COVID-19 pandemic since March 26, 2020. Grant awards will be a maximum of $7,000 each.
Applications for the program are due by Friday, January 29. For more information on eligibility requirements and application information, please visit the program website here: https://coloradoenterprisefund.org/PikesPeakSmallBusinessReliefProgram
Alternative Funding Resources Spreadsheet
The Colorado Office of Economic Development and International Trade (OEDIT) is hosing an extensive 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.