We at USA Water Polo want to keep you informed of programs that may be available through Small Business Administration loans and other grant funding to help small businesses during this difficult time. Please keep in mind that USA Water Polo is not affiliated or involved with operating any of these programs. Please direct all questions to the organizations responsible for offering and managing these initiatives.
June 15 - Paycheck Protection Program Flexibility Act
Big Fish Presents Information on the Paycheck Protection Program Flexibility Act
June 4 - PPP Loan Forgiveness
Big Fish Employer Services Town Hall Webinar - PPP Loan Forgiveness Guidance
May 12 - Insurance Information
COVID-19 Insurance Q&A
April 22 - Update Communication to Club Admins:
Club Support - Senate Approves Additional Funding through SBA Loan Programs
April 9th - Club Admin Meeting Recap
Local Chamber Office
If you belong to your local Chamber of Commerce, we recommend reaching out to your local office during this time for resources and additional information. Your local Chamber is most likely monitoring the impact on businesses in your community and may be able to provide local support and help answer questions.
Facebook Grants
Facebook is offering $100 million in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries. This program is intended to help keep your workforce going strong, cover rent and operational costs and connect with customers.
This program will begin accepting applications in the coming weeks. You can sign up for updates by visiting here: https://www.facebook.com/business/grants
Charitable Giving Incentive
The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes a new above-the-line deduction (universal or non-itemizer deduction that applies to all taxpayers) for total charitable contributions of up to $300. The incentive applies to contributions made in 2020 and would be claimed on tax forms next year. The bill also lifts the existing cap on annual contributions for those who itemize, raising it from 60 percent of adjusted gross income to 100 percent. For corporations, the bill raises the annual limit from 10 percent to 25 percent. Food donations from corporations would be available to 25 percent, up from the current 15 percent cap.
To read more about the potential of this program, click here.
SMALL BUSINESS ADMINISTRATION PROGRAMS
Small Business Administration Paycheck Protection Plan
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency.
Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
Eligible Entities
You are eligible if you are:
- 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 any trade 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
Note: The 500-employee threshold includes all employees: full-time, part-time, and any other status.
Loan Approval Criteria:
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
- 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 (final requirements will be announced by the government) such as payroll tax filings, Forms 1099-MISC, and income and expenses from the sole proprietorship.
What lenders will NOT LOOK FOR:
- That the borrower sought and was unable to obtain credit elsewhere.
- A personal guarantee is not required for the loan.
- No collateral is required for the loan.
How Much You Can Borrow:
Loans can be up to 2.5 x the borrower's average monthly payroll costs, not to exceed $10 million.
What is included in payroll costs?
- For Employers: The sum of payments of any compensation with respect to employees that is a:
- 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 the employee
- For Sole Proprietors, Independent Contractors, and Self-Employed Individuals: The sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in an amount that is not more than $100,000 in one year, as pro-rated for the covered period.
What is not included in payroll costs?
- Compensation of an individual employee in excess of an annual salary of $100,000, as prorated for the period February 15, to June 30, 2020
- Payroll taxes, railroad retirement taxes, and income taxes
- Any compensation of an employee whose principal place of residence is outside of the United States
- Qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (Public Law 116– 5 127); or qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act
Will this Loan Be Forgiven?
A borrower is eligible for loan forgiveness equal to the amount the borrower spent on the following items during the 8-week period beginning on the date of the origination of the loan:
- Payroll costs (using the same definition of payroll costs used to determine loan eligibility)
- Interest on the mortgage obligation incurred in the ordinary course of business
- Rent on a leasing agreement
- Payments on utilities (electricity, gas, water, transportation, telephone, or internet)
- For borrowers with tipped employees, additional wages paid to those employees The loan forgiveness cannot exceed the principal.
How could the forgiveness be reduced? The amount of loan forgiveness calculated above is reduced if there is a reduction in the number of employees or a reduction of greater than 25% in wages paid to employees.
How To Apply:
Currently there does not appear to be a link for this specific program at the SBA website, https://www.sba.gov/.
More information about the program can be found at https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf.
Small Business Administration Disaster Assistance Loans
The Small Business Administration (SBA) is working with state governors to offer Disaster Assistance Loans for Small Businesses Impacted by Coronavirus (COVID-19). Most states are now opening Economic Injury Disaster Loan programs which are intended to aid small businesses directly affected by COVID-19. The program provides working capital loans that may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had this disaster not occurred.
Please review the information below thoroughly and consult with the SBA to determine if this program is right for you. Questions about eligibility, loan amounts or other details should be directed to your local SBA office. For more information and to apply, visit https://disasterloan.sba.gov/ela/.
Applicants who apply for this loan may request an advance of up to $10,000 from the SBA. The advance will be distributed in three days. Applicants are not required to repay this advance.
Eligible Entities:
- Applicants must meet the SBA requirements of a small business (500 employees or fewer)
- Businesses directly affected by COVID-19
Ineligible Entities:
- 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
- Religious Organizations
- 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 regardless of 1/3 criteria above.
- Cannabis Industry
Loan Approval Criteria:
- Credit History: Applicants must have a credit history acceptable to SBA
- Repayment: SBA must determine that the applicant business can repay the SBA loan
How Much Can You Borrow:
- 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
How the Funds Can Be Used:
- 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.
What is Needed to Apply:
- 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
Other Information that may be Requested:
- Complete copy, including all schedules, of the most recent Federal income tax return for principals, general partners or managing member, 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
How Soon Will Businesses Receive Money?
- Eligible businesses that submit complete loan packages could receive money within three (3) weeks
- Incomplete information and verification of collateral will delay approval process
How To Apply:
- 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
As you apply or research funding opportunities, please be advised of cyber attacks and phishing attempts to gather your personal information. Please follow this link to learn more information: https://www.infosecinstitute.com/blog/top-7-coronavirus-phishing-scams-making-the-rounds/
