Southwest Colorado SBDC is available to answer your questions and concerns about the impacts of COVID-19 and the resources that may be able to help – including SBA low-interest loans and others. In an effort to help reduce the rate of COVID-19 transmission and in order to protect you and our staff and partners, Southwest Colorado SBDC will be working remotely. We will email or call to respond to your Request for Assistance; we will conduct phone and online consulting meetings – by appointment as always; we will hold workshops and special programming online. More information to come.
Stay posted and be well!
Small Business Webinars:
The Colorado SBDC Networking is regularly hosting webinars to guide you through the COVID-19 emergency response and preparedness.
Access to Capital
Many organizations have been working to create and provide access to disaster capital for businesses impacted by COVID-19. This is by no means a comprehensive list. We will strive to continuously update this section with reliable sources of disaster capital. We recommend reviewing all eligibility requirements and capital criteria in order to make the best decision for your business.
Federal Relief Funding
The Paycheck Protection Program (PPP) provides loans to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
BA, in consultation with the U.S. Treasury Department, reopened the Paycheck Protection Program (PPP) for First Draw PPP Loans the week of January 11, 2021. SBA will begin accepting applications for Second Draw PPP Loans on January 13, 2021.
To promote access for smaller lenders and their customers, SBA will initially only accept Second Draw PPP Loan applications from participating community financial institutions (CFIs), which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries. Paycheck Protection Program lending will reopen to all participating lenders shortly thereafter. At least $25 billion is being set aside for Second Draw PPP Loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low or moderate income neighborhoods.
Applications for PPP re-opened on July 6. The deadline to apply is August 8.
June 5: The federal government made significant changes to the PPP program.
June 3: Important SBA update on the interplay between PPP and EIDL funds
The Paycheck Protection Program (PPP) provides forgivable loans of up to $10 million for costs incurred from February 15, 2020 to June 30, 2020. Loans can be used for payroll, business rent, business mortgage interest, or business-related utilities.
Who is Eligible: small businesses, non-profits, veterans organizations, tribal businesses, ESOPs and cooperatives with less than 500 employees, sole proprietorships, self-employed individuals, and independent contractors
How to Apply: You apply through your locally-authorized bank and non-bank lenders. This typically is your existing banking partner.
Next Steps:
- Verify your business’s eligibility.
- Review the application (provided by your lender) and gather the necessary materials such as payroll tax filings, proof of lease payments, proof of mortgage payments, and proof of utility payments.
- Get in contact with your accountant and/or bank that pays out your business’s payroll. Ask your lender if it is authorized to process your Paycheck Protection Program loan. If you are not connected to an authorized lender, find an eligible lender here. We have also compiled a list of Colorado SBA approved lenders. If you are struggling to find a lender, please contact our hotline at (303) 860-5881.
Resources:
Guidance on applying for PPP funds:
- How to Calculate Loan Amounts by Business Type
- Prepare, Apply, Comply Guide
- EIDL vs. PPP Questions and Answers
- SBA Coronavirus Pandemic Loans Comparison Guide
- AICPA Resources around PPP for CPAs
Guidance on how to use PPP funds and loan forgiveness:
- Applications:
- PPP Loan Forgiveness Application EZ – Form 3508EZ (Instructions)
- PPP Loan Forgiveness Application – Form 3508 (Instructions)
- AICPA’s Estimator Tool: this tool is regularly updated as new guidance is made available by SBA and Treasury
- AICPA resources
- PPP complete set guidance documents by U.S. Treasury
- PPP FAQs answered by U.S. Treasury
July 12 update: SBA will continue to accept applications for the Economic Disaster Injury Loan Program, but will no longer offer the Advance. If the EIDL Advance was allocated to the business while in processing, but not yet disbursed, it will be disbursed. If it was not allocated, the Advance will not be available.
The SBA’s Economic Injury Disaster Loan (EIDL) Program provides small businesses and non-profits with low-interest loans that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing due to COVID-19.
This loan may be used to:
- Keep employees on payroll
- Pay for sick leave
- Meet increased production costs due to supply chain disruptions
- Pay business obligations, including debts, rent and mortgage payments
Who is Eligible: small businesses, non-profits, veterans organizations, tribal businesses, ESOPs and cooperatives with less than 500 employees, sole proprietorships, self-employed individuals, and independent contractors
How to Apply: Businesses and nonprofits can apply now through SBA’s online application portal. After submitting that application, you will then continue with the more detailed EIDL application.
Next Steps:
- Verify eligibility through SBA’s online portal.
- Gather necessary materials such as your business’s most recent tax return, owner’s/GP’s personal financial statement, and schedule of liabilities.
- Apply through SBA.
- If you have an application number from when you submitted, you are in the SBA system under review. Your application is still being processed by SBA if you have not heard not back.
Resources:
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Targeted Launch: October 2020
Funds Available: $250 million
Uses: Loans (originated by banks, CDFIs and credit unions) will be available for small businesses with up to 99 employees
More program information will be available on State Treasurer, OEDIT, and CHFA web sites as the October launch date nears. Sign up for our COVID-19 email updates.
The Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan.
Who is Eligible: Any of the following who have a business relationship with an SBA Express Lender: small businesses, non-profits, veterans organizations, tribal businesses, ESOPs and cooperatives with less than 500 employees, sole proprietorships, self-employed individuals, and independent contractors
How to Apply: Talk to your local lender and find out if they are an SBA Express Lender. If your lender is not authorized, please review this list of Colorado SBA Express Lenders.
As part of SBA’s debt relief efforts,
- The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
- The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
If you had a pre-existing disaster loan on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.
The following Google sheet helps Colorado’s small businesses find alternative funding sources beyond EIDL, PPP, and other federal loans and programs. OEDIT will be updating this sheet regularly and are aware that resources can change on a day-to-day basis. If you come across any resources that are no longer active, please email us at oedit_sbnavigator@state.co.us.
Please note that this Google sheet is ‘live’, so you may see changes as we make real-time updates.
ALTERNATIVE SOURCES OF FUNDING
We also have compiled a comprehensive list of Nonprofit Lenders in Colorado.
The Main Street Lending program helps credit flow to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 crisis, but now need loans to help maintain their operations until they have recovered from, or adapted to, the impacts of the pandemic. The loans range from $250,000 to $300 million.
The program offers 5-year loans, with floating rates, and principal and interest payments deferred as indicated in the chart below to assist businesses facing temporary cash flow interruptions.
Loans
The nonprofit organization Kiva provides 0% interest loans to small businesses worldwide. They are expanding eligibility and the amount of loans provided during this crisis.
Grants
AidtoAll is a community-focused, technology-driven nonprofit. We’re a 501(c)(3) public charity, providing aid directly to individuals in communities who are experiencing financial crisis during this pandemic. We connect everyone in communities who can provide help with each neighbor who needs it. One neigborhood at a time.
Colorado businesses can now apply for SBA Economic Injury Disaster Loan and SBA Economic Injury Disaster Grant. These programs are rolled into a single application. For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 or email disastercustomerservices@sba.gov.
Help Colorado Now has raised $7.7 million dollars from nearly 4,000 individuals, foundations, and companies.
The COVID-19 CO Creatives Relief Grant is a one-time payment to non-profit arts organizations in Colorado.
El Pomar Foundation announced the establishment of the Colorado Assistance Fund (CAF). CAF is a $1 million fund offering immediate aid to nonprofit organizations supporting Colorado communities, organizations and individuals affected by the recent outbreak of COVID-19.
Facebook announced a $100 million program to help small businesses as governments throughout the country urge gyms and restaurants to close their doors to slow the coronavirus pandemic.
JPMorgan Chase announced a $50 million global philanthropic commitment to address the immediate public health and long-term economic challenges from the COVID-19 global pandemic. $8 million to assist small businesses vulnerable to significant economic hardships in the U.S., China and Europe.
Philanthropy Colorado has been working to connect funders across the state and ensure the sector has the most up-to-date information about nonprofit needs, relief funds and resources.
SheaMoisture is offering a $1M relief fund for businesses owned by women of color.
Spanx is offering $5M in grants to female entrepreneurs.
The Distance Learning and Telemedicine program helps rural communities use the unique capabilities of telecommunications to connect to each other and to the world, overcoming the effects of remoteness and low population density. For example, this program can link teachers and medical service providers in one area to students and patients in another. All upcoming events will be posted on the events program tab.
Verizon will launch multiple rounds of an available COVID-19 Relief Grant.
The Weld Recovers Fund application is now available.
Additional Resources
https://www.colorado.gov/pacific/cdle/unemployment
- If you are preparing to file, double-check when you can file and file on that day. Save often!
https://www.colorado.gov/pacific/cdle/eligibility
- The bottom of this page define what a job attached means.
https://www.colorado.gov/pacific/cdle/layoffassistance
- Work-share allows employees to keep working at reduced hours. Be compliant with current Public Health and Executive Orders.
