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PPP Flexibility Act and EIDL

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NOTE:  The EIDL loan application must be submitted by December 31, 2020:
SBA – Disaster Loan Assistance (https://covid19relief.sba.gov)

SBA Coronavirus Pandemic Disaster Loans Comparison (click here)
PPP / EIDL comparison chart (click here).
The EIDL and Advance is open for all small businesses again: www.sba.gov/disaster.

Paycheck Protection Program (www.sba.gov/ppp)(updated) — Application Deadline: August 8th.
Applications  are closed.

  • Recent changes (summary from SBA June, 9, 2020):
    * Extends the maturity for loans made on or after June 5, 2020 from two years to five years.
  • * Extends the covered period from June 30, 2020 to December 31, 2020 for forgiveness of PPP loans.
  • * Extends the covered period for the use of loan proceeds from eight weeks to 24 weeks.
  • * Provides a safe harbor for small businesses from the rehire requirements if the business owner can document their inability to hire employees for unfilled positions by December 31, 2020 or their inability to return to the same level of business activity because of federal COVID requirements pertaining to social distancing, sanitation, and worker safety.
  • * Allows borrowers to use 60 percent of the loan amount for payroll costs and up to 40 percent for debt obligations, including interest on a mortgage, rent payment, or utility payment.
  • * Extends the deferment period for loans retroactively until the amount of forgiveness is remitted to the borrower by the lender (the deferment period ends for all borrowers 10 months after the end of the covered period).
  • * Delays the payment of employer payroll taxes until January 1, 2021 for PPP borrowers.
    Journal of Accountancy (click here for more information)

Notes: 
* Independent contractors: submit documentation that will assist in proving how you ‘pay’ yourself:  draws, 1099’s, Schedule C of the 1040, etc.  Ultimately, the decision to approve the funds is with the processor.
* The forgiveness portion of the PPP is taxable; the balance that is either returned or retained as a loan is not taxable.
* SBA Loan Comparison Chart | EIDL / PPP Q&A

Economic Injury Disaster Loan (EIDL)
The EIDL and Advance is open for all small businesses again: www.sba.gov/disaster.

EIDL SBA Customer Service Contact (email is best): disastercustomerservice@sba.gov | 1-800-659-2955. Please use your application # in the correspondence. Operators do not have access to loan information. They can place notes on the callers file, and callers can request to speak to a Loan Officer for assistance. Businesses should send an email if they are interested in additional EIDL funds, if they become available, so that the request is on record. Contact information should include: business name, business contact name, email, phone, address, EIN and EIDL Loan Number.

  • The EIDL Advance is no longer available.
  • To receive updates from the SBA, go to www.sba.gov, then click on NewsRoom.  It takes you a page with instructions which allows individuals to self-subscribe. To report fraud: https://www.sba.gov/about-sba/oversight-advocacy/office-inspector-general.
  • The SBDC does not process loans; the SBDC is partially funded by the U.S. Small Business Administration (SBA), but is not the SBA, a federal agency.

See information about SBA’s Express Loan Pilot Program if eligible.

Alternative Funding Sources (requires a little research but may prove beneficial).
Keep an eye on the state site for more opportunities: https://choosecolorado.com.
Stay up-to-date here: www.ColoradoSBDC.com/covid.

Unemployment Assistance
Colorado’s Unemployment home page:  https://www.colorado.gov/pacific/cdle/unemployment
* Unemployment is taxable income.

Direct link to reopen a claim  (https://smartfile.coworkforce.com/Start)
If you have already filed for benefits, you do not need to contact CDLE to receive supplement unemployment insurance benefits.

* Contact form for Claim questions (only) here.
* Return to work guidance here.