In the wake of the COVID-19 pandemic, we understand that these next few weeks look uncertain and somewhat tumultuous for your revenue stream. The Fulton County Center for Regional Growth and the Downtown Development Specialist offices are in place to make sure business owners and leaders are equipped with useful resources, especially during times of economic injury. A few resources are being provided by the United States Small Business Administration (SBA) and may be helpful during these uncertain times. The SBA provides the Economic Injury Disaster Loan program for events that hindered business activity as well as the Paycheck Protection Program (PPP). Please refer to the following for more information:
As we know, essential industries such as insurance, banks, restaurants, grocery stores, and restaurants will have limited hours of operations. For a full list of essential industries, please click here.
For a list of restaurants available for takeout throughout Fulton County, please click here.
SBA Economic Injury Disaster Loan (EIDL):
(as of 4/8/2020)
The SBA is working to provide businesses with low interest working capital loans up to $2 million to help overcome temporary revenue loss due to the COVID-19 Disaster Declaration.
The typical loan is for 3.75% over a 30 year term.
• Small businesses (Restaurants, Retailers, Hotels, Manufacturers, Owners of rental property, Wholesalers, Others (i.e. too many to list all of them here))
• Small agricultural cooperatives
• Small aquaculture businesses
• Most private non-profit organizations
- Submit Application (see below)
- SBA will follow up and will work with your business to determine best principal option
- Principal option is based on income, overhead, and historic monthly revenue
- Made to assist with legitimate expenses, not debt consolidation
- First-in, First-out basis
- Payments will be deferred for 6 months
- Some small businesses may be eligible for a $10,000 advance (more info below)
- Loans up to $25,000 will not require collateral
EIDL $10,000 Advance Info:
- $10,000 Cash Advance
- Cash advance will be based on the number of employees for businesses with fewer than 11 employees.
- The cash advance calculation is $1,000 per employee with a maximum cash advance of $10,000.
- If you applied as a sole proprietor, self-employed individual or an independent contractor and did not list any employees in you application, the portal will assume 1 employee for the business owner when calculating the advance eligibility.
- The cash advance will be forgiven.
- Disbursements will begin this week and are based on when the applications were received and processed.
The loan applications will be processed in the order in which they have been received. It will likely be several weeks before your application is assigned to a case manager. The program has received millions of applications in the last three weeks.
• Paper loan applications at
U.S. Small Business Administration
Processing and Disbursement Center
14925 Kingsport Road
Fort Worth, TX 76155.
Paycheck Protection Program (PPP)
(as of 4/8/2020)
The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis.
Starting April 3, 2020, small businesses and sole proprietorships can apply for and
receive loans to cover their payroll and other certain expenses through existing SBA
Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through
existing SBA lenders.
- Interest Rate – 1%
- Loan Term – 2 Years
- Non-Profit Eligibility
- Religious Organizations
- Tribal Businesses
- Veteran Organizations
- Headcount determination
- May be actual employees or full-time equivalents. Defer to your lenders for their preference.
- Forgiveness may be prorated based on actual eligible payroll express during the performance period (8-weeks).
- The performance period (8 weeks) begins immediately following the disbursement of the loan proceeds.
- If you have laid off employees prior to receiving the PPP loan, you will have a short window to rehire them.
- You may not defer the spending until you are re-opened.
- If you are planning to utilize the funds when your business re-opens, you should delay your application until you are prepared to use the funds. Please keep in mind that these funds are first come, first serve and may not be able available when it is convenient to participate.
- Seasonal business that had employees in 2019 but had not yet hired their 2020 staff may be eligible. Work with your lender to determine your eligibility and average monthly payroll calculations.
- Expenses that CAN NOT be included in the average monthly payroll calculations for loan amount determination and/or forgiveness:
- Employer contributions of social security and Medicare.
- Worker’s compensation, disability and/or unemployment insurance.
- Payroll processing fees.
- For sole proprietors, self-employed individuals, independent contractors and LLCs filing as sole proprietors/partnerships:
- The lender will determine the mechanism for identifying the owner’s average monthly payroll.
- Each lender is likely to use a different approach to this determination and you will have to follow the guidance of your lender.
- If you have multiple businesses, check with the lender as to how the multiple businesses should apply for the program.
- The multiple businesses should be working with the same lender for the application processes.
- The lender will need to verify that the total number of employees of the businesses qualify as a small business.
- The lender may have the multiple businesses apply under 1 application or as separate applications.
- The lender will have the final say on how to approve and process applications from owners with multiple businesses.
- If you have received an EIDL cash advance prior to the disbursement of the PPP loan, the EIDL advance may be deducted from the total of the PPP loan approval.
Other regulated lenders will be available to make these loans as soon as they are
approved and enrolled in the program.
(all information regarding the SBA Disaster Loan Programs is quoted directly from the United States SBA)
While our offices are temporarily closed, please feel free to reach out via email and cell phone:
James Hannahs – Downtown Gloversville Development Specialist
• SBA’s Customer Service Center