The Payment Protection Program — part of the US Government’s economic rescue efforts — was sort of like a massive truck looking to leap a deep ravine in a stunt. You hope the truck makes it, but you close your eyes because you can’t bear to look. The SBA loan program is similar in that you hoped it would turn out OK and we would all make it to the other side, but you could just imagine the breathtaking falls along the way.

The initial rollout of the program was marked by confusion as to qualification requirements, Web portal glitches, difficulty in getting applications through the bank process and the banks themselves having difficulty in getting answers and loans approved. The initial $395 billion allocated went by in a flash with just 1.6 million loans, and if you were like a lot of businesses who got no money and wondered how that could be when this was supposed to be a small business lending program, you were not alone. Adding to the wonder was that some major companies got funding, including hotels, restaurant chains and the Los Angeles Lakers. Yes, the Los Angeles Lakers. Maybe Lebron could’ve just cut them a check instead.

After that debacle the government did what it does best, throw more money at the problem to the tune of another $310 billion. Applications started being accepted again on Monday and of course the Web portal crashed within hours. Plus there’s the matter of the thousands of loans that were processed but never funded in the first round. But if you’re dogged and determined, you can still get your hands on some much-needed capital if you hurry (like today), even if you don’t have a team of investment bankers working for you:

 

Paycheck Protection Program

 

You can find the most recent application posted on the Treasury Department’s Cares Act resource page, although you still need to go through an SBA approved lender, and it’s probably best to go through your bank (they will have applications available as well). Any business that has employees qualifies and the loan can be used for payroll, rent, utilities and other operating expenses. Much of the loan can be forgiven depending on what you do with your payroll going forward, turning it effectively into a grant. Limited Liability Corporations. S-Corps and sole proprietors who don’t have employees can also qualify, depending on how you pay yourself (talk to your banker or accountant). Independent contractors can also quality, as can some other categories of self-employed people.

 

SBA disaster loan

 

The SBA Disaster Loan is a program that predates the COVID-19 pandemic. It was designed for hurricanes and other natural disasters and this pretty much feels like a disaster. The SBA blew through the $60 billion allocated right quick and it got refunded along with the Payroll Protection Program. Amounts of these loans tend to be smaller and are not tied to payroll; they are designed to help businesses pay their operating expenses. They are are not forgivable but a small portion of the loan can be a grant and these loans tend to be smaller than the Payroll Protection Program.

There are three ways to apply for an SBA disaster-assistance loan. The SBA operates an online portal where you can upload business documents and apply for a loan. You can also fill out the PDF documents linked on the agency’s website and mail them to the SBA’s processing and disbursement center at 14925 Kingsport Rd., Fort Worth, TX 76155-2243. The agency’s forms say applicants can also submit forms in person at an SBA disaster center.

Good luck and remember, Jacksonville Local Marketing is offering certain services for free to businesses that have been temporarily shuttered by COVID-19, to help you get ready for that V shaped recovery, or any recovery. Call 904-744-8877 or email info@larrybassaniconsulting.com.