SBA Disaster Relief Webinar: NGLCC’s Takeaways
CLICK HERE for SBA COVID-19 Small Business Guidance & Loan Resources
[Note: As was mentioned in the webinar, SBA relief loans/grants are contingent upon requirements being met that are unique to each business/industry. NGLCC is an information resource sharing partner of the SBA, but we do not provide direct support with applications. However, the SBA Team is available to you using the information below:
Get Support Directly from the SBA:
If you need additional assistance or information, please contact our CustomerService Center.
1-800-659-2955 (TTY/TDD: 1-800-877-8339)
Please use the SBA’s Local Recover Assistance Directory to locate the office nearest you.
Please let us know if you have questions related to NGLCC resources not connected to the SBA resources listed above — we’re all in this together.]
On March 26, over 800 advocates and allies for the LGBT business community came together to learn how to connect LGBT-owned small businesses with emergency capital and resources during COVID-19.
The National LGBT Chamber of Commerce Co-Founder and President Justin Nelson and several Small Business Administration senior leadership representatives led the webinar for affiliate chamber leaders and key business stakeholders to learn how to support Certified LGBT Business Enterprise® (Certified LGBTBE®) companies.
“We saw this crisis, and NGLCC went into action immediately to work on relief efforts for LGBT minority owned businesses,” Nelson said.
NGLCC wants to highlight the top seven key points we took away from the webinar, and spotlight the important questions that were asked.
- Apply for an Economic Injury Disaster Loan (EIDL) through the SBA
All small business owners are encouraged to apply to receive an Economic Injury Disaster Loan to help their business stay afloat. This is the first time that this program is being used in a pandemic setting, and the SBA has been working to streamline the application process in order to get money to small businesses quickly.
According to the SBA, $562 million has been allocated to help small businesses, and every state and U.S. territory can apply. Companies can be loaned up to $2 million dollars, and the first $500,000 applied for requires limited documentation and paperwork.
The Economic Injury Disaster Loan program has been around for a long time. Usually, more paperwork and actions require completion. Now, the SBA has streamlined the process to eliminate delays during this time. Instead of facing multiple hoops to jump through, there is just one application!
Note: In this program, SBA is a direct lender. Representatives from SBA stressed to not believe scams from businesses/loan brokers claiming to be associated with SBA.
- Since this webinar, the SBA Paycheck Protection Program has been passed!
The Paycheck Protection Program has been passed by the Senate. This program allocates $350 billion to small businesses to assist with job retention. Businesses are eligible for up to $10 million.
This loan is determined based on average monthly payroll costs. For information on how this loan is calculated, click here to view a helpful article from the U.S. Chamber of Commerce.
Graphic by U.S. Chamber of Commerce
Under this program, banks distribute loans to companies that are SBA approved lenders. The SBA is working with local banks to become approved lenders.
- SBA EIDL includes $10,000 advancement for businesses
Under the program, small businesses that request a $10,000 advancement with their EIDL loan will receive those funds within three days of the application submission. Even if the application is not approved, you do not need to pay back the $10,000 advancement!
“We have a mission to fulfill as many of these loans as possible,” said Alex Contreras, the director of preparedness, communication, and coordination at the SBA Office of Disaster Assistance.
- Time varies for grants and loans by state
Each state varies in processing time for loan applications. Some businesses hear back within a few days, and for others, the process takes longer.
Remember, the SBA is on your side: if your application is taking longer, reach out about your application!
- There is no collateral required to speed up the process
Usually real estate is used as collateral for disaster loans. During this time, that would prove too difficult.
Now, general security interest in business assets is being used as collateral. This could include equipment, furniture, or inventory.
- You have time to pay it back
For both the EIDL and the Paycheck Protection program, loans are deferred for one year. Payments are also spread out over multiple years to make sure businesses have enough time to recover.
Interest rates are also incredibly low. According to the SBA, there is a 3.75% interest rate for businesses, and 2.75% interest rate for private non-profits.
- The NGLCC and SBA are here for you and your business
During the webinar, the SBA stressed the importance of applying for these loans. Even if your business is rejected initially, don't lose hope. There is a possibility that you will be contacted again if others who apply are accepted and deny the assistance.
“What I have seen in the last 2 weeks with SBA is nothing short of remarkable,” said Nelson.
We understand that times are hard, and that coronavirus is changing our lives rapidly each day. We are proud to work with the SBA and advocate for small business relief at this time.
We are in this fight together to ensure the survival of our LGBT-owned businesses. For more resources on coronavirus, visit nglcc.org/covid19
For more information on EIDL and how the SBA can help your business, visit https://www.sba.gov/funding-programs/disaster-assistance