Answers That Count - Hosted By Charles Musgrove

In this episode we provide an update on the Paycheck Protection Program loan application process. We discuss the details of the application, the banks process and the timeline for funding the loans. We also discuss the SBA Disaster Loan program, the $10,000 grants that are available through this program and the Bridge Loan Program offered through the Florida Office of Economic Opportunity. 

Roxanne Sexton, an Account Manager with the Bean Team has been in the trenches from day one with these different loan programs. She has stayed up with the evolving rules and how to advise clients. She has lead the project for Bean Team to coordinate the effort to help as many businesses respond appropriately to the options that are available. 

Paycheck Protection Program/CARES Act

• Processed and funded by banks
• Based on past payroll (salary, hourly, vacation, sick, PTO)
• 2.5 X average monthly payroll
• Excludes payroll taxes (mostly)
• Excludes 1099 subcontractors
• Includes employer paid health insurance
• Includes employer paid 401K
• Excludes payroll greater than $100K annual
•  

Other information for PPP Application

• Ownership disclosed – greater than 20%
• Affiliates disclosed
• No Personal Guarantee
• No collateral or security pledged
•  
• SBA Form + Bank specific information provided
• Bank reviews package
• Bank approves package
• Bank uploads to SBA
• SBA reviews and approves package
• SBA ‘Allocates Funds’ for the requested loan
• Bank prepares loan documents, sets closing and executes
• E-Closing and Funds the loan

https://home.treasury.gov/system/files/136/PPP%20Borrower%20Information%20Fact%20Sheet.pdf

SBA Disaster Loan – Economic Injury Disaster Loan (EIDL)

• Processed and funded by SBA
• Up to $2.0 million
• Amount and terms to be determined by the SBA
• Grant of $10,000 available when completing on-line application
• The $10,000 is supposed to be funded within 3 days of submitting application (not reality though)

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

Florida Bridge Loans

• Processed by SBDC funded by Florida Department of Economic Opportunity
• Standard request is $50,000
• However, if $25,000 or less is requested, the approval process is supposed to be within days, otherwise the approval and funding will be slow
• PG required by owner
• Loan made to the business owner, not the owner
• Interest free for 1 year, then interest applies
• Loan supposed to be repaid with SBA funds or other permanent financing when received

https://covid19.floridajobs.org/