Joint Chamber Small Business Resource Call 4/16/2020
A full listing of the Q&A from the call and additional questions submitted via the chat function.
Business Impact Survery Part II: http://survey.constantcontact.com/survey/a07eh0gb9vwk8khv3y5/a01kik9326yv5/questions
Spokane County Business Resource Link: https://greaterspokane.org/covid-19/
Questions directed to the Small Business Administration
Q: I was informed yesterday from my lender that we are approved for the SBA PPP loan. This morning I heard on the news that the money is all used up. Does this mean I will not get the loan?
- A: This depends on if your lender has a SBA loan number for you. If you have a loan number, your funding is secured.
Q: Once we receive PPP funds, can we pay expenses ahead in payroll, rent, and/or utilities if needed to maximize the loan forgiveness amount?
- A: Yes absolutely.
Q: My understanding is that we will have an 8 week period in which to use PPP funds for forgivable expenses. If our forgivable expenses do not reach the amount of funds received, can we use the remainder to pay for anticipated payroll, rent, utilities expenses that will fall beyond the 8 week period?
- A: Yes, absolutely.
Q: I applied for the EIDL Loan and $10k advance on March 30 when the application was simplified but I still have not received any funds or heard anything from SBA. When I called, I was told that it was still in process. How is that coming and when can I expect help? My business really needs it.
- A: In order to check the status of your application you will need to email [email protected] or call 800-659-2955. If the loan cannot be funded as of right now, more money into the programs is expected from Congress in the coming weeks.
Q: What records will EIDL grant recipients need to provide the SBA to ensure it is forgiven?
- A: The EIDL Advance is forgivable under all circumstances. For the PPP to be forgiven you will need to prove that at least 70% of the funds went towards payroll and other capital expenses.
Q: Can EIDL applicants apply for a loan if they already applied for the advance?
- A: In order to get the advance you would have already had to applied for the EIDL Loan. If you are wondering if you can still apply for the PPP then please see the answer below from the Senate Small Business Committee:
- Whether you’ve already received an EIDL unrelated to COVID-19 or you receive a COVID19 related EIDL and/or Emergency Grant between January 31, 2020 and June 30, 2020, you may also apply for a PPP loan. If you ultimately receive a PPP loan or refinance an EIDL into a PPP loan, any advance amount received under the Emergency Economic Injury Grant Program would be subtracted from the amount forgiven in the PPP. However, you cannot use your EIDL for the same purpose as your PPP loan. For example, if you use your EIDL to cover payroll for certain workers in April, you cannot use PPP for payroll for those same workers in April, although you could use it for payroll in March or for different workers in April.
Q: I was informed by my bank that we are eligible for the loan forgiveness on existing 7a loans. Is that financial resource the same dollars as PPP and others
- A: If we understand the question correctly, no it will not come out of the same fund. PPP is a separate program. Learn more here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief
Q: If we let go someone due to negligence during that time will this count against the loan forgiveness.
- A: The level of loan forgiveness is going to be based on the amount of the dollars from the PPP that are used for payroll and payroll expense. If they use 75% of their PPP loan funds for payroll expenses they would have 100% of the loan forgiven. If they fall under the 75% threshold less of the loan would be forgiven. We do not know the scale that will be used. The best thing to do if they want to let someone go, is to replace that position as soon as possible.
Q: What is the web address for checking on an existing EIDL Loan number?
- A: To check status on EIDL call 800-659-2955 or email customer service: [email protected]
Q: EIDL was supposed to advance $10K within 3 days. Is that still supposed to happen?
- A: The program has evolved as more details have been set by Treasury and SBA. Applications are taking up to three weeks to process and the initial award is based on $1000 per number of employees for EIDL up to 10. This modification was made because there were not enough funds available to fulfill the program based on the original SOP.
Q: We’ve had are paperwork for PPP for weeks and our local bank still is not SBA 7a certified. They are working on it. Other banks are not accepting apps unless a person banks with them. Does anyone know of any lenders that will take PPP app from non customers?
- A: Most banks are prioritizing their members however please see this answer from Lacey Sherman : There are some Fintech firms that were accepting applications. (Kabbage and 10A for example)
Q: Which banks are able to provide these PPP loans. Is there a way to get a list of those that are able to participate?
- A: Please visit this site to see what qualified lenders are in your area: https://www.sba.gov/paycheckprotection/find
Q: Should I hire back staff when I get the advance or when I get the PPP loan funds?
- A: The only loan that is conditional on you hiring your employees back in order for the loan to be forgiven is the Paycheck Prevention Program. Through that program you will need to hire you employees back before June 30th.
Q: Our payroll run dates are the 1st to the 15th and the 16th to the 31st. If our PPP was approved on 04/09/2020 – would all of the 04/01 to 04/15 Payroll dollars count towards the forgivable loan? OR is it from the 9th of April to the 15th and moving forward to the 8 weeks?
- A: It will be counted from the day you get accepted. So as long as your paydate comes after the acceptance date, the expense will qualify.
Q: Are there banks that are processing applications still for PPP.
- A: Yes most banks are still processing applications however, they cannot input any further applications for fulfillment until additional funding is approved. So, we suggest preparing your application and submit it to a bank so any preliminary processing can be done prior to the next round being approved.
Q: Is there funding available through other SBA funding programs (not PPP or EIDL)?
- A: SBA has their typical loans outside of the disaster loans and new PPP. Find more information here: https://www.sba.gov/funding-programs/loans
Q: Are we supposed to be contacting our bank in addition to submitting the EIDL application or will someone reach out to us?
- A: To check status on EIDL call 800-659-2955 or email customer service: [email protected]. You can also visit https://disasterloan.sba.gov/ela
Questions to Congresswomen Cathy McMorris Rodgers
Q: Do we still continue to recommend providers to apply for the PPP if it is exhausted?
- A: Yes, continue to apply so that you are in the que when more money is allocated to the program by Congress.
Q: Do you see the extra $600 unemployment benefit made available by CARES being exhausted early?
- A: No, there isn’t a fund that is appropriated for this. These funds are pulled directly from the treasury. The window to apply for this currently ends July 31st.
Q: What is the best way to connect with Cathy McMorris Rodgers?
- A: Cathy McMorris Rodgers : 509-353-2374 or McMorris.House.gov
Q: Are more funds going in the PPP so I can still apply?
- A: Congress is hoping to input more money into the PPP in the coming weeks.
Employment Security Department Questions
Q: What day will the WA State Unemployment application be updated to include those who are sole proprietor/self employed such as hair stylists? Federal legislation approved it two weeks ago-but the state application still does not accept these applications. Also, will this group be able to apply back to the first day of the State order for them to not work (March 16)?
- A: The Employment Securities Department will have that program up and running by Sunday, April 18th. They have also said that in order to be qualified for the PUA you will need to have been denied standard unemployment. They are recommending people apply for the current system, in anticipation that they will be denied. When the program is up and running you will need to login to your account and there will be new link to apply through the portal for those individuals.
Q: Hair Salons have got no help or unemployment yet. We want to know when sole proprietors getting help.
- A: The Employment Securities Department is hoping to have that program up and running by this Saturday, April 18th. They have also said that in order to be qualified for the PUA you will need to have been denied standard unemployment. They are recommending people apply for the current system, in anticipation that they will be denied. When the program is up and running you will be notified to update the application.
Q: Can you provide any information regarding the stimulus funds from the government? I checked IRS online for both my husband and myself and it says it doesn’t have any info for us. We filed our 2018 taxes, on time last year. There’s nothing that would make us ineligible. Is it because we didn’t file our 2019 taxes?
- A: From Cathy McMorris Rodgers website, Incomes will be determined by 2019 tax returns or 2018 tax returns if you have not yet filed for 2019. Also see for more information: https://www.irs.gov/coronavirus
Q: From Suzanne Schmidt : Suzanne Schmidt with Associated Builders and Contractors. Is the $600 stimulus for folks on unemployment $600 per person or is it prorated by how much they are receiving based on how much they were earning? What is the employee is doing Work Share? Are they eligible for the $600 stimulus?
- A: the $600 UI payment is a federal supplemental to the state unemployment payment to the individual. Also, the $600 is in addition to any amount they are currently awarded; unemployment for W2 employees, PUA for 1099 contractors.
Q: We attempted to work with Amazon and understand that new food items won’t be reviewed at this time. Can you help?
- A: Using their relationship with Amazon, this is something that they may be able to help with. It would be worth reaching out.
Additional Tools Referenced on the Call
- From Cathy McMorris Rodgers : Extensive FAQ on PPP can be found here: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf
- From Cathy McMorris Rodgers : Cathy’s Small Business COVID-19 Resource Guide: https://mcmorris.house.gov/coronavirussmallbusiness/
- IRS Stimulus check info: https://www.irs.gov/coronavirus/economic-impact-payments