Another SBA update 4/11/2020

Important notes and additional guidance from Friday’s SBA webinar

Our team has been sitting in on video calls and listening to webinars so we can provide you with the best guidance and accurate information. Important notes and additional guidance from Friday’s SBA webinar:

  • Not every company that applies for the SBA’s $10,000 grant will receive the full amount. The language used now is “up to a $10,000 advance.” It is based on $1,000 per employee. 
  • If applicants are initially declined for EIDL loans, they can reapply up to two additional times to seek a loan approval. If EIDL applicants are denied, the amount received for the grant is not supposed be repaid.
  • The amount received for the advance will be deducted if the EIDL loan is approved for more than $25,000.
  • How you plan to use the loan money is of critical importance. The SBA wants to see that you are requesting help with expenses that the business would normally have to pay if the pandemic never happened. Documentation will be required. If you applied with a “wish list,” contact your financial counselor to discuss.
  • We’re happy to report that payments for the up to $10,000 received under EIDL began on April 10, 2020.

SBA Updates on 4/12/2020

SBA updates – April 2020

Yesterday we heard updates and clarifications from the SBA’s Office of Financial Assistance. The update was provided by Rosemarie Drake, Chief of 7(a) Division. Here’s a quick summary for you. We received these two points of clarification:
• The representative of the borrower must be someone who is 20% or more owner of the business with the ability to sign on behalf of the business.
• A clarification to how applicants can calculate payroll costs: the cost of benefits for individuals who make a salary over $100,000 can be included.

Resource: The Small Business Administration for Local Assistance

The Small Business Administration for Local Assistance

At the MBDA Manufacturing Center, we do everything we can to help MBEs thrive and flourish. We value the partners who also help our clients, like the Small Business Administration.

SBA works with a number of local partners to counsel, mentor, and train small businesses. The SBA has 68 District Offices, as well as support provided by its Resource Partners, such as SCORE offices, Women’s Business Centers, Small Business Development Centers and Veterans Business Outreach Centers. When faced with a business need, use the SBA’s Local Assistance Directory to locate the office nearest you.