Loans

EIDL Loans:ย 

On September 8, the SBA announced major changes to the Economic Injury Disaster Loan Program. It is important that we get the word out about these major upgrades to EIDL.

Key highlights include:

ยท    3.75% fixed interest rate for businesses

ยท    30-year term

ยท    ๐—œ๐—ป๐—ฐ๐—ฟ๐—ฒ๐—ฎ๐˜€๐—ถ๐—ป๐—ด ๐˜๐—ต๐—ฒ ๐—–๐—ข๐—ฉ๐—œ๐—— ๐—˜๐—œ๐——๐—Ÿ ๐—–๐—ฎ๐—ฝ from $500,000 to $2 million.

ยท    Payment Deferment:  Payments are deferred for the first 2 years (during which interest will accrue), and payments of principal and interest are made over the remaining 28 years. No penalty for prepayment.

ยท    ๐—˜๐˜€๐˜๐—ฎ๐—ฏ๐—น๐—ถ๐˜€๐—ต๐—บ๐—ฒ๐—ป๐˜ ๐—ผ๐—ณ ๐—ฎ ๐Ÿฏ๐Ÿฌ-๐——๐—ฎ๐˜† ๐—˜๐˜…๐—ฐ๐—น๐˜‚๐˜€๐—ถ๐˜ƒ๐—ถ๐˜๐˜† ๐—ช๐—ถ๐—ป๐—ฑ๐—ผ๐˜„ for loans of $500,000 or less.

ยท    ๐—˜๐˜…๐—ฝ๐—ฎ๐—ป๐˜€๐—ถ๐—ผ๐—ป ๐—ผ๐—ณ ๐—˜๐—น๐—ถ๐—ด๐—ถ๐—ฏ๐—น๐—ฒ ๐—จ๐˜€๐—ฒ ๐—ผ๐—ณ ๐—™๐˜‚๐—ป๐—ฑ๐˜€. COVID EIDL funds will now be eligible to prepay commercial debt and make payments on federal business debt.

ยท    Fees: 

  • For loans $25,000 or less: No fees if applying directly through SBA
  • For loans greater than $25,000: One-time $100 fee for filing a lien on borrowerโ€™s business assets plus costs to file lien on real estate when applicable
  • For loans greater than $500,000 where SBA is taking real estate as collateral: One-time $100 fee for filing a lien on borrowerโ€™s business assets. Additionally, the borrower will be responsible for recording the real estate lien and paying the associated fees.

ยท    Collateral:  Required for Loans greater than $25,000

ยท    Personal Guaranty:  Required for loans greater than $200,000

For more info or to apply go to:  https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl/covid-19-eidl#section-header-2

Linked here is the slide deck from the US Small Business Administration (SBA) focused on “Accessing Working Capital.”


Small Business Flex Fund:ย 

The new Washington State Small Business Flex Fund This new fund is a simple, low-interest, and flexible loan for Washingtonโ€™s smallest businesses and nonprofits. As of October 12th loans had been funded totaling $13,606,010. As of October 12th 2,046 pre-applications had been matched with CDFI lenders requesting $193,860,010.

Commerce and the WA SBDC are holding another webinar for small businesses, nonprofit employers and partners focused on the Small Business Flex Fund. You can sign up here:

Tuesday, October 19 at 1:00 pm: https://wsbdc.org/event/small-business-flex-fund-info-webinar-3/


Rural Business Cooperative Funds:

Business & Industry (B&I) CARES Act Program

Effective May 22, 2020, USDA is making available up to $1 billion in loan guarantees to help rural businesses meet their working capital needs during the coronavirus pandemic. Additionally, agricultural producers that are not eligible for USDA Farm Service Agency loans may receive funding under USDA Business & Industry (B&I) CARES Act Program provisions included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

In addition to expanding eligibility to certain agricultural producers, the changes allow USDA to:

ยท  Provide 90 percent guarantees on B&I CARES Act Program loans;

ยท  Set the application and guarantee fee at two percent of the loan;

ยท  Accept appraisals completed within two years of the loan application date;

ยท  Not require discounting of collateral for working capital loans, and Extend the maximum term for working capital loans to 10 years.

B&I CARES Act Program loans must be used as working capital to prevent, prepare for or respond to the effects of the coronavirus pandemic. The loans may be used only to support rural businesses, including agricultural producers, that were in operation on Feb. 15, 2020.


COASTAL COMMUNITIES LOAN FUND:ย 


Great loan option for small businesses impacted by Covid-19 if you need accessible, low- interest, deferred loans.
–Loans up to $25,000 for working capital 
–Streamlined application and approval process 
–Low interest rates, deferred loan payments
–Located in Clallam, Jefferson, Grays Harbor, Pacific or Wahkiakum County 
–Operating business, not a passive real estate entity 
–In business for a minimum of one year, and able to provide a 2018 Federal Tax Return 
–Viable, demonstrating profitability before disruptions from COVID-19
–Have a plan to recover post-disruption 
–Current on federal income taxes
Size and Terms: Loan Size: up to $25,000 (must justify amount in application) Interest Rate: 2.44% (variable; 75% of WSJ Prime) Term: 7 years Repayment Schedule: Principal and interest payments will be deferred for six (6) months. Interest will accrue during deferral period. Deferral may be extended based on demonstrated need. Loans may be prepaid, in part of whole, at any time without penalty. Fees: No application fee; a closing fee of up to $500 can be amortized in the loan. 
Uses of Funds: Loan proceeds may be used for working capital (examples include but are not limited to payroll, rent, insurance, utilities, etc.). 
Collateral
1. A UCC lien on business assets
2. All owners owning 20% or more of the business will be required to execute a personal guarantee 
For more information or to apply, contact: Melissa LaFayette mlafayette@ndconline.org

Main Street Lending Program: The MSLP is intended to provide support for small and mid-sized businesses through four-year term loans (the โ€œMain Street Loansโ€) from eligible lenders to eligible US businesses, which together with their affiliates, have up to 15,000 employees or revenues of up to $5 billion. First Federal and other local community banks are participating in the US Federal Reserve program.


Our local Washington Small Business Development Center (SBDC) Advisor is Mike Rieckhoff.  He can be reached at mike.rieckhoff@wsbdc.org
We do our best to keep this page updated but if none of these programs work for your needs contact us @ info@clallam.org or there are sometimes programs that may fit a niche industry need at:  https://www.commerce.wa.gov/open-grants-loans/
SBA Programs – Scams and Fraud Alertshttps://www.sba.gov/document/report–sba-programs-scams-fraud-alerts?utm_medium=email&utm_source=govdelivery

As mentioned in the video, CIE employees would love to help you with this process if you have questions.

Mike Rieckhoff: mike.rieckhoff@wsbdc.org 360.417.3375

Micah Jonet: micah.jonet@cie-nw.org or you can click HERE to make an appointment with him.