Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.
1. There is more than $130 billion in PPP funding still available … and now, more flexibility too.
PPP funds are still available for small businesses, independent contractors, nonprofits and tribal businesses whose operations were impacted by the Coronavirus outbreak. And with the enactment of the Paycheck Protection Program Flexibility Act, there is more flexibility, such as the extension of time to spend loan proceeds from eight weeks to 24 weeks and the expansion in the percentage of funds that can be used for non-payroll expenses. Read more in this joint statement from SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin.
2. The last date on which a PPP loan application can be approved is June 30, 2020.
While many extensions and flexibilities were enacted with recent legislation, one date still remains: the last day a PPP loan application can be approved is June 30, 2020. That means now is the time to apply for a PPP loan before time runs out. Find a PPP lender — or even review PPP materials in 17 languages — by visiting www.sba.gov/paycheckprotection.
3. SBA Resource Partners can help you with the PPP application or loan forgiveness process.
Through webinars, virtual meetings and phone calls, business advisers from the SBA Resource Partner Network are helping small businesses navigate through the PPP process. Plus, they are working with businesses on their individual recovery plans. Connect with a SBA Resource Partner near you or one of the many other helpful resources from the Federal Resources for Small Business website.
4. We want to know how the PPP has helped your business.
We’ve been answering a lot of questions from businesses about the PPP process along the way. Now we want to hear the end result. Tell us your story of how the PPP has helped your business and your employees.
5. Report fraud to the SBA Office of Inspector General.
While new programs are helping people through difficult times, unfortunately, it comes with new avenues for scams and fraud. If you suspect fraud on an SBA program or want to learn more about known scams and alerts, visit the SBA Office of Inspector General website.
LATEST UPDATE on Applying for Economic Injury Disaster Loan (EIDL) Assistance (as of 3/30/2020)
Things are changing rapidly and the platform to apply for assistance has changed. If you have previously filed an application, you do not need to submit another through this process. Your application is in process, and you should be hearing something soon.
In its simplest form, the value of a business can be boiled down to just two components: risk and reward.
Although a significant amount of thought and rigor is required to determine the value of a specific business, the underlying concept remains the same: the value of a business is equal to the economic benefit (earnings or cash flow) that it generates divided by the risk it takes to generate those benefits.
Value = Earnings (or Cash Flow)
Think of it this way. If two companies generate the same amount of cash, which one is more attractive (valuable) to investors?
a Fortune 500 company in business for 35 years with revenues locked in for the next 5 years
a start-up with an untested management team, dubious business plan and volatile revenue stream
Of course, the right answer is 1).
So, while earnings are important, don’t forget to focus on risk as well. They both play an important part in the value equation.
If you apply for an SBA loan, your loan won’t be from the SBA, and you won’t make your payments to the agency. Instead, the SBA approves lenders to provide loans to small businesses under their loan programs. Continue reading →
“How can I get grant money to start a for-profit business?”
This is the number one funding related question that Small Business Administration, other government agencies and financial institutions encounter from potential entrepreneurs seeking money to start a business.
The infomercials on late night television selling books or offering free seminars appear to be very convincing. I have spent hours investigating myths and facts about grants. Here are the findings:
Myths about Grants for “For-Profit” Business:
As part of the research on grants, I attended a few different seminars that were held by privately owned organizations at some of the major hotels. Continue reading →
If you don’t have the capital to fund your business growth, here are a few ideas. Which one is right for you?
1. Bank Loan or Line of Credit
Borrowing from the bank is probably the most traditional way of funding a business. This can take the form of a traditional loan or line of credit. Some banks may require an SBA guarantee which is a little more expensive than a bank-only loan. Others may require covenants, or conditions, within which the business must perform.
Bankers will review your historical performance and business plan in great detail. Assuming that these pass muster, the bank will require collateral in the form of inventory, equipment or even your house. In many cases they will insist on a personal guarantee.
Bank loans are debt financing requiring periodic payment of principal and interest. However, they do not require you to give up equity in your business; if your business takes off, you keep the profits (after debt repayment). Continue reading →
As with many things in life – where we place our attention is what will change. But, if you try to focus on too many things at once, nothing gets done. The same is true for monitoring your business’ financial performance.
Monitor and focus your attention on those few key metrics that drive your business’ health through a dashboard tailored to your needs.
A good dashboard – often no more than one page, is a powerful visual of graphs and other data that provide a snapshot of the key components of your business. It monitors trends and tracks performance against goals, providing the ability to course-correct mid-year.
A customized monthly dashboard should focus on the key drivers of your business and help you quickly and easily assess the health and trajectory of your company. Here’s how: Continue reading →
Microloans sound interesting for a hair stylist.
When you’re thinking about borrowing money, do some research.
Find some options. Then, pick the one that’s right for you.