Thank you for reaching out to SCORE Western Connecticut, a 501(c)(3) nonprofit organization and a resource partner of the U.S. Small Business Administration (SBA).
We know these are stressful times and we appreciate your trust in our organization to provide services free of charge to small businesses and Non-Profits.
In an effort to provide valuable, helpful and timely assistance to our business community, attached find the following information resources.
SCORE Business Hub information related to COVID-19: https://www.score.org/coronavirus
SBA is offering two loan programs. The Economic Injury Disaster Loans (EIDL) provides loans up to $2 million at an interest rate of 3.75% with a loan repayment of 30 years. This loan is an online application directly to the SBA. There are eligibility requirements noted in the attached.
The second loan program, Payroll Payback Program, will be administered through banks that currently provide SBA loans and can be 2.5 times the borrower’s average monthly payroll costs, not to exceed $10 million. This loan program does forgive a portion of the debt after a certain timeframe. A summary of both loan programs are attached or go to the website: https://www.sba.gov/funding-programs/disaster-assistance
Additionally, if you have employees, below are the links to the following resources:
- Occupational Safety & Health Administration: https://www.osha.gov/SLTC/covid-19/
- Centers for Disease Control - Interim Guidance for Businesses & Employers: https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2F2019-ncov%2Fspecific-groups%2Fguidance-business-response.html
Note: Time is of the essence. It’s not necessary to wait fora SCORE meeting to get started.
Steps You Can Take Now:
- Call your banker or other lenders and investors and explain your situation and ask for their guidance. They will be aware of other relevant programs.
- Remember that your bankers, lenders or other finance professionals are operating with the same restrictions on social distancing, and office hour modifications and/or closures to the public. They may also be short-staffed as well.
- Make pro-active contact with your landlord and/or business resources for which you may owe regular payments. Don’t wait for them to call you. Explain your circumstances and make sure they know you will be able to honor your financial commitments once this crisis moderates to the point where you can resume the business.
- Many of them will be getting concessions from their lenders that may aid in their flexibility with you.
- Keep careful and detailed documentation of all of your direct business expenses and estimated revenue losses due to the effects of the COVID-19 illness. You’ll need to make your best case when applying for loans and preparing statements of loss for insurance and tax purposes.
- Consolidate all of your important business documents including your recent past IRS and State of Connecticut tax filings.
- Contact your Accountant or CPA for information and guidance on any possible Business/Casualty Loss deductions on next year's Federal and State Tax returns. You may be able to deduct the loss or partial loss of personal and business use property on your federal income tax return.
- Check-outthe Disaster Assistance Portal which can help you find disaster-related assistance that meets your personal needs. You can locate over 60 forms of assistance from 17 federal agencies. Go to http://www.disasterassistance.gov/ for more information.
- Contact your insurance professional. Review your insurance policy for any Business Interruption/Extra Expense coverage – although only about 30% of businesses are covered today. If you are covered, you’ll need to file a claim for consideration as a result of your loss of income and extra expenses through a mandated closure (or a diminished operating capacity) by a local, state or federal civil authority directive “force majeure”. Going forward, consider adding a virus, communicable disease, and bacteriological endorsement to your property policy.
Once you have taken the critical first steps, please e-mail me if you would like to talk with a SCORE mentor. We can provide a network trusted, knowledgeable mentors and relevant workshops/events to help emerging entrepreneurs and existing small businesses solve problems and improve competency as they create companies, jobs, and revenue in chapters throughout the U.S.A.
Thanks again for your confidence in SCORE Western Connecticut.
We will assist you in creating a business and financial plan in preparation for acquiring financing from a lending institution or SBA Loan guaranty. SCORE does not lend money, but helps you to prepare to find loan sourcing.
SCORE’s role with these loans is to understand where a client needs to go to apply for the loan if it benefits them, and help them understand how best to use this money to sustain their business. We can also provide support if they are rejected for a loan by helping them understand next steps for their business and identifying other opportunities such as the quarterly Nav grant contest and the Facebook business grant.