Financial Assistance - COVID19
COVID Lending Best Practices
- Your lender, accountant and attorney are best situated to help you weigh options.
- Keep those records. If the cost may be included in applications or an eventual forgiveness process, document it. The diary/journal could be electronic or written. Log information and specific examples of how your business was affected from employees to customers, vendors, etc.
- Deposit the funds into a separate checking account dedicated to the (PPP) Loan proceeds. This will aid in tracking the funds used for the specified purposes. If a copy of the bank activity is requested, you now have a separate account versus having to share all operating bank activity.
- Payroll Protection Program (PPP) is popular, but the CARES Act delivers added flexibility through SBA Economic Injury Disaster Loans, larger business loans, and the Employee Retention Tax Credit.
- More help may be coming. Congress is already looking at increasing PPP funding from $350 billion to $600 billion. It officially ran out of funds on April 16.
April 16 - Federal Government’s Phased Guidelines Opening America Again.
States will retain the authority to do what is best in their specific situations, and encouraged them to work together regionally, so think of this as an overall proposed framework.
COVID-19 Federal Rural Resource Guide
USDA and its Federal partners have programs that can be used to provide immediate and long-term assistance to rural communities affected by the COVID-19 outbreak. • technical, training, and management assistance; • financial assistance; and • state and local assistance. This resource matrix organizes funding opportunities identified in the CARES Act and other federal resources that can help support rural America. Opportunities are categorized by customer and assistance type View Matrix
Small Business Administration (SBA)
On Friday, March 27, 2020, the President signed into law the CARES Act, which contains $376 billion in relief for American workers and small businesses. In addition to traditional SBA funding programs, the CARES Act established several new temporary programs to address the COVID-19 outbreak.
Paycheck Protection ProgramProvides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program. More Info
EIDL Loan AdvanceThis loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. More Info
SBA Express Bridge LoanEnables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. More Info
SBA Debt Relief
The SBA is providing a financial reprieve to small businesses during the COVID19 pandemic. More Info
Paycheck Protection Program (PPP) Loans Frequently Asked Questions (FAQs)
Check out --> 46. Question: How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?
PPP Loan Forgiveness Application
SBA Loans & FSA Loans
A common question, Nebraska FSA offices have been receiving is whether enrollment in PPP or EIDL will impact agricultural producers’ ability to participate in CFAP. “Participation in SBA’s PPP or EIDL program does NOT impact producer eligibility for USDA’s forthcoming Coronavirus Food Assistance Program (CFAP). There is no linkage among these programs. Likewise, participation in SBA’s PPP or EIDL program does not impact producer eligibility for any USDA farm program. The PPP duplicate benefit provision does not have an impact on FSA farm programs or farm loan programs.” Source: USDA FSA
Nebraska Chamber Resources for NE Businesses Navigating Federal Relief Programs
The guides provide side-by-side comparisons of federal and state unemployment programs, as well as the terms of lending programs. The charts include links for applying and submitting ongoing filings. They also direct users to various guides, videos, and instructions to help lead applicants through the process. The effort was a result of member feedback that a more simplistic roadmap was needed.
NE State Budget & COVID19
Senator John Stinner, chairman of the Legislature's Appropriations Committee, is predicting shortfalls in the state revenue to the tune of $500 million. For cities that rely heavily on sales tax, the state may have to help them through the federal relief package. Nebraska received $1.25 billion in the COVID-19 emergency relief funding from the federal government. Although Nebraska has about $55 million in reserve to pay for unexpected emergencies, Nebraska could see a short-term revenue shortfall. The IRS pushed the tax filing deadline to July 15, meaning the state won’t get the projected $385 million in taxes it was expecting because the fiscal year ends June 30. It’s also unknown if businesses impacted by the pandemic will be able to meet their tax obligations. Full Story