small business loans Archives

SBA Releases Official Details of Paycheck Protection Program
The U.S. Small Business Administration (SBA) released the official rule for the $349 billion Paycheck Protection Program (PPP), including the formula for calculating loan amounts and what the loan can cover. Small businesses and sole proprietors can begin applying for the federal loans through their lenders today. Independent contractors and self-employers can apply beginning April 10.

Under the rule, businesses with 500 or fewer employees and 501(c)3 organizations are eligible to apply as long as they were in operation on Feb. 15, 2020. Sole proprietors and independent contractors are also eligible, but independent contractors need to apply themselves. A company cannot apply on behalf of a contractor.

The maximum loan amount is $10 million at an interest rate of 1% and a two-year term. PPP loans will be provided on a first-come-first served basis, so we recommend contacting your current lender as soon as possible to apply. Lenders will prioritize their current customers’ applications. If you do not have a current lender or your lender is not participating, see the SBA’s tool to find eligible lenders. On our website, we also have a list of Chamber members that we know are participating lenders.

The following items qualify as payroll costs.

Compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions or similar compensation
Cash tips or the equivalent
Payment for vacation, parental, family, medical or sick leave
Allowance for separation or dismissal
Payment for employee benefits, such as group health care coverage, including insurance premiums and retirement
Payment for state and local taxes assessed on employees’ compensation

For independent contractors or sole proprietors, qualifying costs include wage, commissions, income or net earnings from self-employment or similar compensation.

Twenty-five percent of the loan can also be used to pay for:

Mortgage interest
Rent
Utilities
Interest on any other debt obligations that were incurred before Feb. 15, 2020
Refinancing an SBA Economic Injury Disaster Loan (EIDL) made between Jan. 31, 2020, and April 3, 2020

To calculate your loan amount, use the following formula.

Calculate the wages, salary and commissions from the last 12 months.
Subtract any earnings for an individual that are in excess of $100,000.
Add all employer paid group health care and retirement plan costs.
Include local/municipal fees, e.g. Denver Occupational Privilege Tax.
Do NOT include federal or state paid employer paid taxes.
Divide your answer by 12.
Multiply the average monthly payroll costs from Step 3 by 2.5.
Add the outstanding amount of your Economic Injury Disaster Loan, if you received one between Jan. 31, 2020, and April 3, 2020, minus the amount of any “advance” you received for that loan. (That advance does not have to be repaid.

To see specific examples of how to calculate the loan amount, view pages 9-10 of the interim rule.

The loans may be fully or partially forgiven if the money is used for payroll, health care premiums, rent, mortgage interest or utilities over the 8-week period following origination, AND the employer either continues to employ workers or rehires them when the business reopens. However, no more than 25% of the loan forgiveness amount may be for non-payroll costs.

Your lender will need you to submit an application and payroll documentation.

Read more about the SBA Paycheck Protection Program on the SBA website or visit our COVID-19 Business Resource Center.

You can also contact our Denver Metro Small Business Development Center at info@denversbdc.org or the Small Business COVID-19 Disaster Response Hotline at (303) 860-5881 for more information.

Register Today for Monday’s Webinar on Applying for Paycheck Protection Loans
Join the Denver Metro Chamber, the Denver Metro Small Business Development Center and Colorado Lending Source, a Small Business Administration-approved lender, for an in-depth guide to the loan application process for the federal Paycheck Protection Program.

Monday, April 6
Noon to 1 p.m.

Speaker
Mike O’Donnell, Executive Director, Colorado Lending Source

Governor Extends Sales Tax Deadline for Businesses to May 20
Gov. Jared Polis announced an extension to May 20 for businesses to file their sales tax returns. Visit the Colorado Department of Revenue website for a list of all deadlines.

Save the Date for Webinar on Managing Employees During COVID-19
Join us to learn best practices for managing remote employees. This webinar will offer tips to keep your staff engaged and productive while maintaining their mental wellness through the COVID-19 crisis.

Thursday, April 16
11 a.m. to Noon

Speakers
James McDonough, HR Research Consultant, Member Engagement, Employers Council
Carl Clark, M.D., President/CEO, Mental Health Center of Denver

Save the date. Registration information to come.

View upcoming COVID-19 webinars on the Chamber’s COVID-19 website. Also view recordings of past webinars:

For More Resources
Our COVID-19 Business Resource Center has the latest news, resources and information for business owners, employers and workers. Visit www.denverchamber.org/COVID.

Kelly Brough is the president and CEO of the Denver Metro Chamber.

Lenders Can Start Accepting Paycheck Protection Loan Applications from Small Businesses on Friday
On Friday, small businesses and sole proprietors can begin working with their lenders to submit loan applications for the federal Paycheck Protection Program (PPP). Independent contractors and self-employers can begin submitting applications April 10.

PPP is part of the federal CARES Act enacted last week. It provides potentially forgivable loans in amounts to cover 2.5 months of payroll or $10 million (whichever is less). We recommend contacting your current lender immediately. Lenders will prioritize current customers as they process applications. You can also begin completing your application.

Learn more about this funding source and others available to small businesses in
Monday’s Chamber blog, "More Info for Small Businesses Applying for Aid.”

Webinar on Applying for Paycheck Protection Loans on Monday
Join the Denver Metro Chamber, the Denver Metro Small Business Development Center and Colorado Lending Source, a Small Business Administration-approved lender, for an in-depth guide to the loan application process for the federal Paycheck Protection Program.

Monday, April 6
Noon to 1 p.m.

Speaker
Mike O’Donnell, Executive Director, Colorado Lending Source

View upcoming COVID-19 webinars on the Chamber’s COVID-19 website. Also view recordings of past webinars:

Governor Extends Statewide School Closures through April
Gov. Jared Polis announced earlier this week that the state’s schools will be closed for in-person learning through April 30 and likely through the end of the school year. Many school districts have already begun conducting online classes. Read the Executive Order.

Governor Expands Free Child Care to More Workers
This week, Gov. Polis expanded free emergency child care to thousands more workers, including those in grocery, food processing and construction. Originally, free child care was available to only health care workers and first responders. Tuition will be fully funded through May 17. Read the Public Health Order. Learn about the Colorado Emergency Child Care Collaborative.

Health Insurance Enrollment Period Extended through April
Connect for Health Colorado announced it would expand its emergency special enrollment period through April 30 to help Coloradans who are currently uninsured or about to lose coverage due to COVID-19. The deadline was originally Friday. Enroll at www.connectforhealthco.com.

Supreme Court Rules Legislative Session Can Be Extended
The Colorado Supreme Court ruled Wednesday that the 2020 legislative session can extend past its scheduled May 6 adjournment date. The ruling says that the 120-day session can be calculated by counting working days rather than consecutive days during a declared public health emergency. This means that the session, which was suspended March 15, still has 53 days left, leaving time for action on the 355 bills that have been introduced.

The Executive Committee of the Legislature is expected to meet within the coming weeks to determine priorities and a potential schedule for the remainder of the session. The Joint Budget Committee is expected to meet a week before the legislature reconvenes to discuss and make decisions on the 2020-2021 budget.

Read the Supreme Court’s ruling.

Kelly Brough is the president and CEO of the Denver Metro Chamber.

Here at the Denver Metro Chamber, we are focused on supporting our business community as we tackle the economic trauma of COVID-19. Every day, we hear how our members are adapting in innovative ways to the new environment, including interruptions in service, closures, delays and remote working – just to name a few.

We know many of you need more support, especially organizations with fewer than 500 employees. The Chamber and the Denver Metro Small Business Development Center (SBDC) are presenting two webinars this week to bring you the best resources and information to help you navigate this challenging time.

All-Member Policy Update
Join us for an overview of the federal stimulus package, known as the Coronavirus Aid, Relief and Economic Security (CARES) Act, and other important federal COVID-19 updates.

Wednesday, April 1
11 a.m. to 12:30 p.m.

Speakers
U.S. Sen. Michael Bennet – Confirmed
U.S. Sen. Cory Gardner – Invited
Neil Bradley, Executive Vice President and Chief Policy Officer, U.S. Chamber of Commerce

CARES Act Impact on Small Business
Learn how the CARES Act applies to small businesses, what programs are available for small businesses and the application process for payroll protection loans.

Thursday, April 2
11:30 a.m. to 1 p.m.

Speakers
Thomas M. Sullivan, Vice President, Small Business Policy, U.S. Chamber of Commerce
Frances A. Padilla, Colorado District Director, U.S. Small Business Association

Federal Lending and Grants
We’re hearing from many members who want more information on the federal Paycheck Protection Program, SBA low-interest disaster loans and SBA bridge loans. Here is what we know:

Paycheck Protection Program
The SBA and partner banks are ramping up for the Paycheck Protection Program, part of the federal CARES Act enacted Friday. This program provides potentially forgivable loans in amounts to cover 2.5 months of payroll or $10 million (whichever is less). No personal guarantee or collateral is required.

The business and its lender negotiate loan terms, but annual or guarantee fees are waived. Importantly, the loans may be fully or partially forgiven if the money is used for payroll, health care premiums, rent, mortgage interest or utilities, AND the employer either continues to employ its workers or rehires them when they reopen for business.

The lenders and final rules of the program have not yet been finalized. However, after consulting with our banking partners, we’d recommend the following:

Contact your current lending institution to see if they are a preferred SBA lender and verify that they can help once the program has been activated.
Get your information ready. In evaluating eligibility, lenders are directed to consider whether the borrower was in operation and paying employees or contractors before Feb. 15, 2020.
Lenders will also ask you for a good-faith certification that includes information about why you need the loan, how you will use it, current loan applications and the date you started doing business.
If you are an independent contractor, sole proprietor or self-employed individual, lenders will also likely need your payroll tax filings, forms 1099-MISC and income and expense statements.

SBA Economic Injury Disaster Loans
SBA low-interest disaster loans of up to $2 million are available to small businesses and nonprofits without alternative credit available. These loans can be used to pay fixed debts, payroll, accounts payable and additional bills that can’t be paid because of COVID-19’s impact.

In order to prepare, you will need to fill out the following forms:

Completed SBA loan application (SBA Form 5)
Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates
Complete copies of the most recent Federal Income Tax Return
Schedule of Liabilities (SBA Form 2202)
Personal Financial Statement (SBA Form 413)
Income, balance sheet and cash flow documents
Other information may also be requested
SBA EIDL paper forms and instructions

You can apply for these loans online at covid19relief.sba.gov/#/.

SBA Express Bridge Loans 

The Express Bridge Loan Pilot Program allows small businesses that currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork.
Find an Express Bridge Loan Lender via SBA’s Lender Match Tool or by connecting with your local SBA District Office.

Businesses can apply for both Paycheck Protection Loans and Economic Injury Disaster Loans, as they are nonconflicting programs. Reach out to your current lender and the Denver Metro SBDC at info@denversbdc.org for assistance and recommendations.

Other Notes
View the U.S. Chamber of Commerce Coronavirus Emergency Loans Small Business Guide and Checklist.

View the U.S. Senate Committee on Small Business & Entrepreneurship Small Business Owner’s Guide to the CARES Act.

President Trump approved Colorado’s Disaster Declaration, unlocking more federal funding for state, local and tribal recovery efforts. View the announcement.

We continue to update our COVID-19 website. Visit www.denverchamber.org/covid.

Thank you for your commitment to your businesses, your employees, our community and the Chamber. We look forward to continuing our work together and will keep you up to date as new programs roll out.

Kelly Brough is the president and CEO of the Denver Metro Chamber.

President Signs Stimulus Package with Aid for Businesses and Workers
President Trump signed into law the largest U.S. stimulus package ever to help provide economic relief to businesses and workers affected by the COVID-19 outbreak.

The following items are among the aid included in the $2 trillion Coronavirus Aid, Relief and Economic Security Act (CARES) Act:

For small businesses (those with less than 500 employees), 501(c)3s, independent contractors and sole proprietors

Payroll Protection Program offering loans equal to two and half months of payroll, up to $10 million. The loans would convert to grants if businesses use them to maintain employees, and they may also be used to rehire staff. Businesses, even without a personal guarantee or collateral, can receive loans as long as they were operational on Feb. 15, 2020, and will be able to apply through local and national lenders.

For individuals

Extension of unemployment insurance by 13 weeks.
Unemployment benefit increase of $600 per week for four months.
Stimulus checks of about $1,200 to each taxpayer, plus $500 per child under age 16.

Other aid

A refundable payroll tax credit for 50% of wages paid by employers to employees during the COVID-19 crisis.
Temporary increases to the amount of interest expense businesses are allowed to deduct on their tax returns to 50% of taxable income for 2019 and 2020.
Allowances to employers and self-employed individuals to defer payments of the employer share of the Social Security tax.

Read the U.S. Chamber of Commerce’s summary of the CARES Act.

Read the full text of the bill.

See the U.S. Chamber’s Small Business Guide to the CARES Act.

The offices of U.S. Sens. Michael Bennet (D-Denver) and Cory Gardner (R-Yuma) provided updates to the Denver Metro Chamber’s Public Affairs Council shortly after voting to approve the stimulus package Thursday. View a recording of the meeting. The U.S. Chamber of Commerce also presented on the legislation. View the presentation.

Information on How to Apply for Federal Aid to Come
The Denver Metro Small Business Development Center is closely following the federal stimulus package and pulling together resources to be able to help businesses apply for aid immediately. As soon as the process for applying for these loans is released by the federal government, we will share that information.

Small Business Hotlines Available for Information
Low-interest small business loans are available through the Small Business Administration (SBA). Call the SBA Economic Injury Relief Hotline at (800) 659-2955 or the Small Business COVID-19 Disaster Relief Hotline at (303) 860-5881. Or apply directly at disasterloan.sba.gov/ela.

State and Local Updates

Gov. Jared Polis issued an executive order extending the expiration date for licenses issued to individuals and businesses, including child care facilities, real estate brokers, health care facilities and providers, commercial drivers, restaurants, hotels and holders of liquor and marijuana licenses. Read the full order.
The City and County of Denver will waive late interest on property tax installment payments. Read the announcement.
Gov. Polis updated the state’s stay-at-home order to classify real estate services as critical business, which makes them exempt from the order. Read more about the order on the Colorado Department of Public Health & Environment website.
Businesses can self-certify as critical. Learn how to receive certification as a critical business.

Kelly Brough is the president and CEO of the Denver Metro Chamber.

Governor Announces Statewide Stay-at-Home Order
Gov. Jared Polis announced a statewide stay-at-home order Wednesday afternoon. Adams, Arapahoe, Boulder, Broomfield, Douglas, Larimer and Jefferson counties have announced their own orders, joining the City and County of Denver.

The state’s order begins at 6 a.m., Thursday, and lasts through April 11. The stay-at-home orders for Adams, Arapahoe, Boulder, Douglas and Jefferson counties last through April 17. Under the orders, residents are allowed to leave their homes to shop for essential needs, such as groceries and medications, exercise and go to work if their job qualifies for an exemption, although they are encouraged to practice social distancing under all circumstances.

Read the orders for the state and each county:

Denver Launches COVID-19 Business Relief Program
Denver released more details of its business relief program, including $7,500 grants, on Wednesday. The Denver Economic Development & Opportunity (DEDO), in partnership with Mile High United Way, is making available one-time grants up to $7,500 for eligible small businesses with a focus on the following industries:

Retail (storefront)
Restaurant/food industry
Personal care (barber shop, nail salon)
Health care and social assistance services (childcare & home health care providers)
Logistics
Small manufacturing

The program is intended to be available for four months and rolled out in monthly phases with the first applications due Tuesday, March 31.

The grants cannot exceed more than 60% of a business’ revenue loss and must meet certain criteria including the following:

Operate within the City and County of Denver
Generate $2 million in annual revenue or less
Have 25 employees or fewer
Have experienced a 25% decline in revenue this year as a result of the COVID-19 pandemic

The city will prioritize applications based on several factors including percentage of revenue decline, number of employees and proposed use of financial assistance. Grants can be used to fund payroll, fixed costs like rent and mortgages, marketing strategies, operating costs, implementing delivery services, installing better ventilation and other engineering controls, and sourcing alternative suppliers.

Interested businesses can complete an online questionnaire and DEDO will screen responses to filter to the correct grant program. Then, businesses will be asked to complete an online application.

Denver is also promoting its Microloan Program as a solution for businesses affected by COVID.19. Learn more about the program and apply.

Visit the City of Denver’s website to see resources available to businesses.

People Filing for Unemployment Asked to Do So on Designated Days
To support the significant number of individuals seeking to file unemployment claims online, the State of Colorado has asked people to file on certain days based on their last names.

If your last name begins with A through M, you may file on Sunday, Tuesday, Thursday or after noon on Saturday.
If your last name begins with N through Z, you may file on Monday, Wednesday, Friday or before noon on Saturday.

You will need your Social Security number, valid ID and employer information, including hours worked and rate of pay.

File online at www.colorado.gov/pacific/cdle/file-claim.

Kelly Brough is the president and CEO of the Denver Metro Chamber.