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Texas small businesses can now apply for the Paycheck Protection Program (PPP) Grant/Loan and/or Economic Injury Disaster Loan (EIDL) to help with the COVID-19 crisis.
Download Step by step guide to filing PPP and EIDL applications.
- Click here to download financing programs focused on PPP, Bridge Loans, Deferment. Click here for PPP Fact Sheet.
- Click here to download the presentation mainly on EIDL. Click here for the recording of this webinar (sorry, we missed the first few minutes).
PPP is managed under SBA 7a and the money will be disbursed through the banks and other lenders who participate in Government Guaranteed Lending. Loans will cover payroll, rent, and utilities and if 75% of the proceeds are used to cover payroll, the loan will be forgiven. Go to your bank and follow their procedure. Download this sample application form from the Treasury Department. The banks are taking applications now except if you are Independent contractors and self-employed individuals. You must wait until April 10 to file.
EIDL is managed by SBA. These are targeted, low-interest loans of up to $2 million to small businesses (3.75% interest rate, fixed) and non-profits (2.75%) that have been severely impacted by the Coronavirus. There is no payment for the first 12-months. There is now a streamlined application online with an option to ask for an advance of up to $10,000 within 3-days of the application. This amount is a grant and you keep it even if the EIDL loan is denied. If already filed before March 30, go online and file the streamlined application again.
- Go to Disasterloan.sba.gov (For information, call 800-659-2955) and submit the online loan application which will ask for information similar to that in these paper forms: SBA Form 5 (Form 5C for Sole Proprietor) and Supporting documents: SBA Form P-109.
- You may be asked for additional information:
Release of income taxes - completed IRS Form 4506-Ts; Personal Financial Statements (SBA Form 413D); Schedule of Liabilities (SBA Form 202); Monthly sales figures (SBA Form 1368); Up to two (2) years complete business tax returns with all schedules; A current year-to-date profit-and-loss statement
- Credit Elsewhere provision is waived under the CARES act.
While waiting for the SBA loan, we suggest you do the following to conserve CASH:
* Contact banks for a bridge loan to cover immediate needs
* Contact lessors of property to postpone payment for a couple of months
* Contact suppliers to see if they are willing to delay payments
* Download this useful toolkit from U.S. Chamber of Commerce
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If you're just starting a business, SCORE mentors can provide the practical action plan, education, and tools you need to open your doors and establish a customer base.
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