Small Businesses & The New Stimulus Package
An informational webinar presented by Indiana Black Expo
We help a webinar specifically to answer the questions of minority-business owners to answer their questions regarding the economic stimulus package related to COVID-19.
We assembled a team of experts who focused on the particular benefits for small business owners in a one-hour online meeting. They discussed the various opportunities available under the stimulus package, eligibility requirements and how to apply for small business loans. The goal was to make sure that small business owners do not make the mistake of assuming that the government stimulus package does not apply to them! They may be leaving money on the table.
This webinar was for all small businesses, regardless of size, even individuals who work for themselves.
Replay Event
Here are the top questions, with answers from the webinar.
If you are on an approved payment plan and current, you would still be eligible. You are ineligible if you, or any business owned or controlled by you or any of your owners, has ever obtained a direct or guaranteed loan from SBA or any other Federal agency that is currently delinquent or has defaulted within the last seven years and caused a loss to the government.
For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 with proper documentation, would be used to calculate the loan amount.
You must also submit such documentation as is necessary to establish eligibility such as payroll processor records, payroll tax filings, or Form 1099-MISC, or income and expenses from a sole proprietorship (Schedule C, Federal Tax returns). For borrowers that do not have any such documentation, the borrower must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying amount.
Yes, for a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 with proper documentation would be used to calculate the loan amount.
PPP is an unsecured loan, but the lender may wish to check your credit score. EIDL is a loan and will have a credit check.
Not true, individuals are eligible.
Yes, You must also submit such documentation as is necessary to establish eligibility such as payroll processor records, payroll tax filings, or Form 1099-MISC, or income and expenses from a sole proprietorship (K-1’s Schedule C, Federal Tax returns,). For borrowers that do not have any such documentation, the borrower must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying amount.
No, you should have seen a checkbox that says application submitted and an application number.
This depends on the bank, you have to go through a Lender, but many are doing the entire application process online.
You should be in contact with your lender regarding the status of your application if your lender does not make an application to us or decides not to pursue a loan for you. Then you would want to ask them to withdraw your application and find an alternative. You do not want to have two lenders pursuing the same loan request. One will be very upset they did the work and did not get the loan.
No the business has to have been up and running as of EIDL 1/31/20 or PPP 2/15/20.
Yes new guidance is that Advance is calculated by # employees x $1,000
If Sole Proprietor or IC, they count as 1.
For detailed information on SBA programs for the coronavirus, please visit www.sba.gov/coronavirus and for information on all federal programs, visit www.usa.gov/coronavirus, or www.gobierno.usa.gov/coronavirus (en Español).
Yes. All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors
Yes. All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors
On EIDL, they will make an offer of a loan amount, and you can decline in full, accept for less, or request additional.
SBA can not require a lender to participate in the program, but information on eligible Lenders is available at https://www.sba.gov/paycheckprotection/find. Also, the Indiana Small Business Development Center has been successful at matching clients with potential lenders. www.isbdc.org They are partners with SBA, and their counseling and assistance are done free of charge. We also have SCORE, and 2 Women’s Business Centers in Indiana also offer free services. All local partners can be found at https://www.sba.gov/local-assistance/find/
Answer is yes to all. Please reach out for individual assistance. The best way is to send email to Indiana@sba.gov
For detailed information on SBA programs for the coronavirus, please visit www.sba.gov/coronavirus and for information on all federal programs, visit www.usa.gov/coronavirus, or www.gobierno.usa.gov/coronavirus (en Español).
Yes. All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors
EIDL is a working capital loan which you can use for all your working capital needs and has a 3.75% and up to a 30-year term. It is a loan and expected to be repaid. PPP is a loan that is intended to help meet short term payroll costs and can also be used for up to 25% of the loan amount for mortgage interest, rent, and utilities only.
If guidelines met, it would be forgiven.
OUR PANEL of EXPERTS
DEBORAH OATTS
Owner, Nubian Construction Group
Deborah will host our panel and moderate the Q&A period for our audience. She leads Nubian Construction Group, a program/construction management company with divisions including tri-axle trucking transportation and outreach compliance program management company headquartered in Indianapolis, Indiana. As a multi-talented businesswoman, Deborah has acquired a rich background through her 30+ years of professional experience. Deborah founded Nubian Transport Management in 1994 after a rewarding career at Eli Lilly & Company.
GREG GOROSPE
Partner, Ice Miller LLP
Greg will provide an overview of the opportunities under stimulus package that relate to small businesses and discuss the opportunities. At Ice Miller, he helps clients assemble joint ventures, obtain or issue financings, complete acquisitions, and dispositions, negotiate construction contracts, development agreements, and leases, and navigate workouts and distressed asset transactions.
JUAN GONZALEZ
President, Central Indiana, KeyBank
Juan will discuss the “practical” process of applying for loans and suggest how you should approach your bank, or develop a banking relationship if you do not have one. He has more than 20 years of experience in the banking and financial industry. He partners closely with Key’s Corporate Responsibility Group to develop and implement a Community lending and investment strategy that will enable KeyBank to meet its corporate and social responsibilities.
JOHN THOMPSON
Owner, First Electric Supply
John will provide his perspective on why it is important to take advantage of this opportunity, and discuss his recent experience with applying for a loan. He is Chairman and Chief Executive Officer of the following, Indianapolis based organizations: Thompson Distribution Company, Inc., a distributor of mechanical supplies and equipment; First Electric Supply Company, LLC, a distributor of electrical supplies and equipment; CMID, an architectural and engineering design firm; and BC Countertops, a fabricator and installer of millwork.
