Small Business Administration SBA Disaster Loans
On Saturday March 21 the Small Business Administration (SBA) declared all of the counties in Wisconsin an SBA Economic Disaster. The SBA is now accepting applications for disaster assistance loans for small businesses impacted by COVID-19. Disaster assistance loans will be offered up to $2M. These loans are working capital loans designed to sustain your business in the way it could have existed if the disaster had not occurred (assessing your ability to pay accounts payable, payroll, paying fixed debt, and other operating expenses). These loans are not intended to be for equipment, expansion or to cover past lost profits or make up for an already struggling business before the disaster. When you submit the application the SBA will determine the loan amount you are eligible to receive
The SBA is offering daily webinars through March 28th at 10 a.m. and 2 p.m. to help answer your questions about the application process. Click on the times to register. The webinars provide an overview of the Economic Injury Disaster Loans that are available to Wisconsin small businesses and private, non-profits. Information included in each webinar:
• Program eligibility
• Use of proceeds
• Terms
• Filing requirements
• Additional small business resources
To Apply and/or Get Assistance From SBDC
Many of you will be able to work through the application on your own. However, if you need assistance or have questions the SBDC is here to help. To apply for the loan, review common FAQ’s and/or request SBDC assistance you need to go to the link below.
https://wisconsinsbdc.org/services/covid-19/disasterloans/
It has been our experience today that on occasion we have not been able to access the SBA’s Loan application site. Typically if we wait a few minutes and come back it has let us log in.
List of Materials to Gather Now
If you seek SBDC assistance, please review the forms below and gather the information requested in these forms. The SBDC is handling requests in the order in which they are received. You can help us serve you by taking the action we request you to complete.
These are all links to the major information forms online in PDF that you can edit and save. When you apply for the loan you will need this information to complete the application. Having the information at your fingertips when the SBDC assists you will speed the process.
· 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).
· Profit and loss statements
· Monthly sales figures (SBA Form 1368)
- Contact information and social security numbers for all applicant/ 20% or more owners.
- Employer Identification Number (EIN) for business applicants
Wisconsin Follows Federal Government, Extends Tax Deadline
Late last week, the federal government announced that tax deadlines were extended. This extension has now been applied to Wisconsin state taxes as well – automatically extending the deadlines to July 15 and waiving interest and penalties for taxpayers due to a President-declared disaster.
This relief is solely for income tax payments and does not require tax filers to file extension forms to be eligible for the new due date.
Wisconsin’s Shelter-In-Place: What Businesses are Essential?
Governor Tony Evers has now issued a #SaferAtHome order, which is functionally a Shelter in Place Order like the ones we have seen in New York City, California, and Illinois over the last week.
In a Twitter chain, the Governor expressed that “I know this has been difficult and has disrupted the lives of people across our state. That’s why issuing a #SaferAtHome order isn’t something I thought we’d have to do, and it’s not something I take lightly. But here’s the bottom line: folks need to start taking this seriously.” He noted that includes the closure of all “non-essential business statewide.”
The SBDC office has had several calls and emails today asking us what is an “essential business?” While Governor Evers is expected to provide more details about what businesses are considered “essential” (Tuesday, March 24, 2020), he has so far defined essential employees as “workers providing essential care or services in our communities… That includes folks like healthcare professionals, grocers, family caregivers, among other people whose work is critical for folks across our state.” Beyond that description that is all that the SBDC has received.
Utility Rules Suspended to Allow Additional Flexibility
Governor Tony Evers announced a new emergency order, Order 11, which will suspend several utility-related administrative rules. The goal is to provide flexibility to utility customers so that they do not have to choose between paying utility bills and other necessities during the COVID-19 emergency.
Because of this order, the Public Service Commission of Wisconsin was able to direct regulated utilities in the state to:
· Stop utility disconnection for nonpayment for all customers, including commercial, industrial, and farm accounts. Previously this applied to residential accounts only;
· Cease assessing late fees to customer accounts;
· Halt the practice of requiring deposits from customers for reconnection of service;
· Allow deferred payment agreements for all customers who request them;
· Remove any administrative barriers for customers establishing or reestablishing utility service; and
Authorize water utilities to provide budget billing arrangements to customers. Electric and natural gas utilities are allowed to do this under current rules.
WEDC Small Business 20/20 Grant Program
Wisconsin Economic Development Corporation (WEDC) created the WEDC Small Business 20/20 Grant Program to provide grants to targeted small businesses with no more than 20 employees. This grant program is very selective as it requires the business have an existing loan through a Certified Development Financial Institution (CDFI) to be eligible. Attached to this email is the list of the CDFI’s in Wisconsin. Royal Credit Union is not a qualified CDFI for this program, although listed on some lists.
Learn more about SB20/20 Grants
I encourage you to read the information here and online before contacting the SBDC. If after you read the information and you have questions, please do not hesitate to contact me if you think I can be of some assistance to you or if you want to discuss your own situation. Also, I will provide you with email updates on SBA Disaster loan and any other SBA initiatives and other things that I think are of value, relevant and important as we move forward. I do not plan to send you the “same thing everyone else has sent to you five times over”. You can also monitor the Wisconsin SBDC website at https://wisconsinsbdc.org/ . The SBDC is purposefully trying to keep our website focused and on point.
Take care and good luck.
Luke Kempen
Director
Wisconsin Small Business Development Center at UW-Eau Claire
Recent News
An Update from the Small Business Development Center Director
Posted by Becca Coleman on March 24th, 2020
Small Business Administration SBA Disaster Loans
On Saturday March 21 the Small Business Administration (SBA) declared all of the counties in Wisconsin an SBA Economic Disaster. The SBA is now accepting applications for disaster assistance loans for small businesses impacted by COVID-19. Disaster assistance loans will be offered up to $2M. These loans are working capital loans designed to sustain your business in the way it could have existed if the disaster had not occurred (assessing your ability to pay accounts payable, payroll, paying fixed debt, and other operating expenses). These loans are not intended to be for equipment, expansion or to cover past lost profits or make up for an already struggling business before the disaster. When you submit the application the SBA will determine the loan amount you are eligible to receive
The SBA is offering daily webinars through March 28th at 10 a.m. and 2 p.m. to help answer your questions about the application process. Click on the times to register. The webinars provide an overview of the Economic Injury Disaster Loans that are available to Wisconsin small businesses and private, non-profits. Information included in each webinar:
• Program eligibility
• Use of proceeds
• Terms
• Filing requirements
• Additional small business resources
To Apply and/or Get Assistance From SBDC
Many of you will be able to work through the application on your own. However, if you need assistance or have questions the SBDC is here to help. To apply for the loan, review common FAQ’s and/or request SBDC assistance you need to go to the link below.
https://wisconsinsbdc.org/services/covid-19/disasterloans/
It has been our experience today that on occasion we have not been able to access the SBA’s Loan application site. Typically if we wait a few minutes and come back it has let us log in.
List of Materials to Gather Now
If you seek SBDC assistance, please review the forms below and gather the information requested in these forms. The SBDC is handling requests in the order in which they are received. You can help us serve you by taking the action we request you to complete.
These are all links to the major information forms online in PDF that you can edit and save. When you apply for the loan you will need this information to complete the application. Having the information at your fingertips when the SBDC assists you will speed the process.
· 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).
· Profit and loss statements
· Monthly sales figures (SBA Form 1368)
Wisconsin Follows Federal Government, Extends Tax Deadline
Late last week, the federal government announced that tax deadlines were extended. This extension has now been applied to Wisconsin state taxes as well – automatically extending the deadlines to July 15 and waiving interest and penalties for taxpayers due to a President-declared disaster.
This relief is solely for income tax payments and does not require tax filers to file extension forms to be eligible for the new due date.
Wisconsin’s Shelter-In-Place: What Businesses are Essential?
Governor Tony Evers has now issued a #SaferAtHome order, which is functionally a Shelter in Place Order like the ones we have seen in New York City, California, and Illinois over the last week.
In a Twitter chain, the Governor expressed that “I know this has been difficult and has disrupted the lives of people across our state. That’s why issuing a #SaferAtHome order isn’t something I thought we’d have to do, and it’s not something I take lightly. But here’s the bottom line: folks need to start taking this seriously.” He noted that includes the closure of all “non-essential business statewide.”
The SBDC office has had several calls and emails today asking us what is an “essential business?” While Governor Evers is expected to provide more details about what businesses are considered “essential” (Tuesday, March 24, 2020), he has so far defined essential employees as “workers providing essential care or services in our communities… That includes folks like healthcare professionals, grocers, family caregivers, among other people whose work is critical for folks across our state.” Beyond that description that is all that the SBDC has received.
Utility Rules Suspended to Allow Additional Flexibility
Governor Tony Evers announced a new emergency order, Order 11, which will suspend several utility-related administrative rules. The goal is to provide flexibility to utility customers so that they do not have to choose between paying utility bills and other necessities during the COVID-19 emergency.
Because of this order, the Public Service Commission of Wisconsin was able to direct regulated utilities in the state to:
· Stop utility disconnection for nonpayment for all customers, including commercial, industrial, and farm accounts. Previously this applied to residential accounts only;
· Cease assessing late fees to customer accounts;
· Halt the practice of requiring deposits from customers for reconnection of service;
· Allow deferred payment agreements for all customers who request them;
· Remove any administrative barriers for customers establishing or reestablishing utility service; and
Authorize water utilities to provide budget billing arrangements to customers. Electric and natural gas utilities are allowed to do this under current rules.
WEDC Small Business 20/20 Grant Program
Wisconsin Economic Development Corporation (WEDC) created the WEDC Small Business 20/20 Grant Program to provide grants to targeted small businesses with no more than 20 employees. This grant program is very selective as it requires the business have an existing loan through a Certified Development Financial Institution (CDFI) to be eligible. Attached to this email is the list of the CDFI’s in Wisconsin. Royal Credit Union is not a qualified CDFI for this program, although listed on some lists.
Learn more about SB20/20 Grants
I encourage you to read the information here and online before contacting the SBDC. If after you read the information and you have questions, please do not hesitate to contact me if you think I can be of some assistance to you or if you want to discuss your own situation. Also, I will provide you with email updates on SBA Disaster loan and any other SBA initiatives and other things that I think are of value, relevant and important as we move forward. I do not plan to send you the “same thing everyone else has sent to you five times over”. You can also monitor the Wisconsin SBDC website at https://wisconsinsbdc.org/ . The SBDC is purposefully trying to keep our website focused and on point.
Take care and good luck.
Luke Kempen
Director
Wisconsin Small Business Development Center at UW-Eau Claire