The 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 SBA and the Colorado Office of Economic Development and International Trade provide services to assist with disaster loan applications, long term planning, insurance navigation, physical and economic loss estimations, business preparedness and more

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Federal Financing Options

Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $1,000,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan. 

Terms:

  • Up to $1,000,000
  • Fast turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan
Find an Express Bridge Loan Lender connect with your local SBA District Office
  • Canvas CU
  • Citywide Banks
  • First Colorado National Bank 
  • First Southwest Bank
  • FirstBank
  • FlatIrons Bank
  • FMS Bank
  • Mountain View Bank of Commerce 
  • NBH Bank
  • Solera National Bank 
  • Stockmens Bank 
  • Sunflower Bank, National Association 
  • Timberline Bank
  • Verus Bank of Commerce

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.

7(a) loans not made under the Paycheck Protection Program (PPP), 504 loans, and microloans. Disaster loans are not eligible (see p. 7 for more information on these).

Borrowers may separately apply for and take out a PPP loan, but debt relief under this program will not apply to a PPP loan.

In general, businesses must meet size standards, be based in the U.S., be able to repay, and have a sound business purpose. To check whether your business is considered small, you will need your business’s 6-digit North American Industry Classification System (NAICS) code and 3-year average annual revenue. Each program has different requirements, see https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief for more information.

7(a) loans are an affordable loan product of up to $5 million for borrowers who lack credit elsewhere and need access to versatile financing, providing short-term or long-term working capital and to purchase an existing business, refinance current business debt, or purchase furniture, fixtures and supplies. In the program, banks share a portion of the risk of the loan with SBA. There are many different types of 7(a) loans, you can visit this site to find the one that’s best for you. You apply for a 7(a) loan with a bank or a mission-based lender. SBA has a free referral service tool called Lender Match to help find a lender near you.

The 504 Loan Program provides loans of up to $5.5 million to approved small businesses with longterm, fixed-rate financing used to acquire fixed assets for expansion or modernization. It is a good option if you need to purchase real estate, buildings, and machinery. You apply through a Certified Development Company, which is a nonprofit corporation that promotes economic development. SBA has a free referral service tool called Lender Match to help find a lender near you.

The Microloan Program provides loans up to $50,000 to help small businesses and certain not-forprofit childcare centers to start up and expand. The average microloan is about $13,000. These loans are delivered through mission-based lenders who are also able to provide business counseling. SBA has a free referral service tool called Lender Match to help find a microlender near you.

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.

  • 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 weather 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.go

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, is designed to encourage Eligible Employers to keep employees on their payroll, despite experiencing economic hardship related to COVID-19, with an employee retention tax credit (Employee Retention Credit).

The Families First Coronavirus Relief Act (FFCRA) requires certain employers to pay sick or family leave wages to employees who are unable to work or telework due to certain circumstances related to COVID-19. Employers are entitled to a refundable tax credit for the required leave paid, up to specified limits. [See FAQs]. The same wages cannot be counted for both credits.

  • 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 vs. EIDL

PPP Loans & EIDL

Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.
 
We just received word that EIDL applicants with 2000 series app numbers should reactivate their applications now that the portal has reopened for Agriculture. Even though the website will say the EIDL App Portal Opening will be for NEW agriculture business applicants only, ODA has informed our field leadership that if someone who has a 2000 series EIDL loan number (meaning that they were in the initial group and need to reapply) they WILL be able to re-apply and have their new loan number tied to their original loan number so they don’t lose their place in line.  

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.

The Paycheck Protection Program will be available through December 31, 2020.

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. 

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. This loan has a maturity of 5 years and an interest rate of 1%. If you wish to begin preparing your application, you can download a sample form to see the information that will be requested from you.

  • 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)

In evaluating eligibility, lenders are directed to consider whether the borrower was in operation before February 15, 2020, and had employees for whom they paid salaries and payroll taxes or paid independent contractors. Lenders will also ask you for a good faith certification that: 

  • The uncertainty of current economic conditions makes the loan request necessary to support ongoing operations 
  • The borrower will use the loan proceeds to retain workers and maintain payroll or make mortgage, lease, and utility payments 
  • The borrower does not have an application pending for a loan duplicative of the purpose and amounts applied for here 
  • From Feb. 15, 2020, to Dec. 31, 2020, the borrower has not received a loan duplicative of the purpose and amounts applied for here (Note: There is an opportunity to fold emergency loans made between Jan. 31, 2020 and the date this loan program becomes available into a new loan) 

If you are an independent contractor, sole proprietor, or self-employed individual, lenders will also be looking for certain documents such as payroll tax filings, Forms 1099-MISC, and income and expenses from the sole proprietorship

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.

• 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 24 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.

 

The twenty four-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower. The lender must make the first disbursement of the loan no later than ten calendar days from the date of loan approval.

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.

If your business has multiple Paycheck Protection Program applications underway and your application is locked by a lender, please email the Colorado District Office for assistance with the following information:
 
Subject line: PPP Duplicate
Information to include:
  • Business name with contact name, address, and phone number
  • EIN of the business
  • If you have applied with a social security number, state that you have but do not include the number. They will call by phone to collect that.
  • Make a statement that the business gives SBA your permission to look into their system to assist in identifying the bank that has the application locked. 
 
Once you know which lender has the application locked, you will need to reach out to that lender to have them unlock the application. Your other lender will then be able to move forward with your other application.

If you are prepared to bring your workers back and have offered an individual work that was then turned down, please report that to the Colorado Department of Labor and Employment (CDLE).
 
CDLE's Employer page provides other valuable information for business owners and managers including:
  • Returning to Work Guidance
  • Layoff Assistance
  • Layoff Alternatives
  • Employee Retention Tax Credit
  • Hiring/Recruiting

  • 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.
  • 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. NOTE: Applicant is a business, including an agricultural cooperative, aquaculture enterprise, nursery, or producer cooperative, that is small under SBA Size Standards found at https://www.sba.gov/size-standards.  
  • 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.

  • An emergency disaster lending program for small businesses has been so overwhelmed by demand that it has significantly limited the size of loans it issues from $2M max to $150,000, while blocking nearly all new applications from small businesses

  • 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. 

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 disastercustomerservice@sba.gov.
  • To check the status of your application, please visit this link here 

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.

  1. 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

Yes, they should re-apply to the quick version of the EIDL.

  • 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.

Here are the directions that the Colorado SBA District Office provided on how to return EIDL funds. Please note there is no electronic funds transfer method at this time, a check will have to be returned. 

Mailing Address  

SBA Denver Finance Center (DFC)

721 19th Street, 

Denver, Colorado 80202 

Directions to Return EIDL Funds

Along with the funds the borrower should submit the following information: 

  • Statement Requesting to Repay/Return EIDL Loan and/or EIDL Advance;
  • Business Name and EIN(s), if applicable. (If there were multiple applications for different businesses, identify under which EIN the funds are being repaid/returned);
  • Borrower First and Last Name (especially if different than indicated on the check);
  • SBA EIDL application number associated with the EIDL Loan and/or Advance (this typically starts with a 3);
  • Last four of SSN; and,
  • Contact information: Name, Business Name, Address, Phone, Email.
  • Please be sure to mail these items through a trackable method, with delivery notification. 

At this time, there is no automatic receipt mechanism from the Denver Finance Center. Businesses should closely watch their bank accounts to see if the funds clear. The completion of the transaction confirmed within their bank account is the fastest method. To confirm the transaction was completed, borrowers should either logon to their online banking accounts and look for the funds withdrawal transaction or query their local branch to get a copy of the cleared check to use as proof of payment.  If a borrower has no other method to verify (e.g., they may have sent a cashier’s check or money order, etc.), they can request a receipt from SBA by sending an email to paymentservices@sba.gov.  The subject of the email should be EIDL Advance Confirmation and the email must contain:

 

  • Borrowers First and Last Name;
  • SBA EIDL application number associated with the EIDL Loan and/or Advance (this typically starts with a 3);
  • Check number and amount; and,
  • Contact information: Address, Phone, Email.

Difference between PPP and EIDL

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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.
  • The Pikes Peak Small Business Development Center and the Pikes Peak Workforce Center have collaborated to provide our small business community the latest information in small business emergency response. Sponsored by the Colorado Springs Business Journal.
  • 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.
  • The resources at choosecolorado.com provide state and federal COVID-19 announcements, programs, and information relevant to Colorado businesses.
  • 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
  • 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.
  • Phianthropy 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.
  • 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.
  • A compiled list of different resources available for immigrants.
  • All Are Welcome complied a list of available resources to undocumented communities.

  • 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.
  • 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.

    Please read this blog for how government contractors can protect your company against virus impact through this link here. https://bit.ly/33Ryzir
  • 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.
  • The Ford Foundation, Schmidt Futures, Open Society Foundations, The JPB Foundation, W.K. Kellogg Foundation, the Annie E. Casey Foundation, Amalgamated Foundation, and others are partnering to create a rapid response fund dedicated to helping the workers, families, and communities most devastated by the COVID-19 pandemic.

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

  • The Colorado Office of Economic Development and International Trade (OEDIT) has put together a list of over 100 different funding options for small businesses.

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.

Colorado Gov. Jared Polis declared a state of emergency on March 10 to protect public health and our vulnerable populations and prevent the spread of the COVID-19 virus. In support of this goal, Colorado Tourism Office has suspended operations for all 10 Colorado Welcome Centers until further notice. All downhill ski areas and resorts in Colorado are closed, as well as many visitor attractions, museums, performance venues and retail stores. Please consult their website or contact them for more information.

Governor Polis has restricted Colorado restaurants and bars from providing dine-in service through April 15. Many restaurants have switched to delivery, take-out, curbside and drive through service to continue serving customers. Many hotels are providing room service. Some communities may have more specific health guidelines. Travelers planning a visit should check with their hotel or the local visitors bureau for guidance.

 

The State of Colorado has partnered with the legal community to create a volunteer program designed to connect attorneys with Colorado businesses in need to help them make informed decisions and get back on their feet.

From financial aid compliance to leasing arrangements and business liability, small businesses across our state face complex challenges and most small businesses need legal resources and expertise to make informed decisions.

The task force will work with our 15 small business development centers (SBDC) around the state. The task force is using recent survey data gathered by the SBDC’s to design need-based webinars, and match volunteer lawyers to small businesses.

The Colorado Lawyers Committee is matching volunteer attorneys with small businesses in need of assistance. This organization is a nonpartisan consortium of 80 Colorado law firms dedicated to creating and increasing opportunities for children, the poor and other disadvantaged communities through pro bono legal advocacy, negotiation, and litigation.

According to the Office of State Planning and Budgeting, Colorado’s tourism industry, which supports many of the state’s small businesses, is expected to rebound more slowly than other sectors. By assisting small businesses, the task force hopes to indirectly support the more than 400,000 Coloradans who have filed for unemployment due to the pandemic.

Businesses interested in applying for assistance, or volunteers willing to help, can go to coloradocovidrelief.org.

Resiliency

Most entrepreneurs know that a well-conceived business plan is critical to the success of a new business. It should be just as clear that a business resiliency plan will be critical to the sustainability and success of your business.

Every business will face an unexpected disruption at some point. The planning you do now can mean the difference in how quickly—or whether—your business recovers.

COVID-19 Recursos para Pequeños Negocios

Upcoming Colorado SBDC COVID-19 Disaster Response Webinars

The Colorado SBDC Networking is regularly hosting webinars to guide you through the COVID-19 emergency response and preparedness.

CARES Act Loan Checklist

COVID-19 Small Business Response Resources

The Colorado Small Business Development Center Network (SBDC) is here to help businesses affected by recent disasters in Colorado, including how to respond to the current health crisis. Our consultants and partners—including the U.S. Small Business Administration (SBA)— provide services to assist with disaster loan applications, longterm planning, insurance navigation, physical and economic loss estimations, business preparedness and more. Please note, the SBDC is not a health organization; for latest news regarding the current health situation, please contact the resources listed in this guide.

COVID-19 Small Business Hotline

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))

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Treasury and IRS Issue Guidance on Deferring Tax Payments Due to COVID-19 Outbreak

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