Small Business Financing during COVID-19

Coronavirus Financing Resources

• If you don't qualify for business disaster assistance . . .

  If your company wasn’t profitable last year, social service assistance might be an option. There are regional COVID-19 funds set up throughout the state.

  If you need resources now, please contact your local United Way to reach trained, caring professionals seven days a week, 24 hours a day.

   

• If you're self-employed or an independent contractor . . .

  Filing for unemployment may be an option. The CARES Act includes a temporary Pandemic Unemployment Assistance (PUA) program through Dec. 31, 2020, to provide payment to workers who are not traditionally eligible for unemployment such as the self-employed or independent contractors (including so-called gig economy workers), who are unable to work as a direct result of the coronavirus public health emergency.

  Apply through your state unemployment office:

  • in Kansas
  • in Missouri

  The Department of Labor, working collaboratively with the states, offers three specific programs:

  Pandemic Unemployment Assistance (PUA) for those not typically eligible for UI, such as gig workers, and expanded UI benefits. PUA provides benefits for eligible individuals who are self-employed, seeking part-time employment, or who otherwise would not qualify for UI benefits under state or federal law. To be eligible, among other requirements, individuals must demonstrate that they are otherwise able to work and available for work within the meaning of applicable state law, except that they are unemployed, partially unemployed, or unable or unavailable to work because of COVID-19 related reasons.

  Federal Pandemic Unemployment Compensation (FPUC) program, eligible individuals who are collecting certain UI benefits, including regular unemployment compensation, will receive an additional $600 in federal benefits per week for weeks of unemployment ending on or before July 31, 2020.

  Pandemic Emergency Unemployment Compensation (PEUC) program allows those who have exhausted benefits under regular unemployment compensation or other programs to receive up to 13 weeks of additional benefits. States must offer flexibility in meeting PEUC eligibility requirements related to “actively seeking work” if an applicant’s ability to do so is impacted by COVID-19.

   

   

• Cash Flow: Manage your finances

  The quickest way to help your finances is to manage your cash flow by monitoring what revenue comes in and what expenses go out.

  Here are some quick tips from Rebecca Gubbels of the Missouri SBDC at UMKC. (Read her full blog post and further ideas on “Things You Can Do for Your Business Now.”)
  

  Watch the video
  (click on the image to play the video, press your browser's back button to return to this page)
  

  

  Evaluate new distribution methods – Look for ways to boost your newly limited in-person traffic. Could you still be solving problems for customers but in different ways? Does creating a subscription service, setting up e-commerce, adding delivery, or implementing curbside service benefit your customers? We at the Missouri SBDC have a pet store client now offering same day local delivery to help customers and their pets get what they need while safely in their homes. Now is definitely the time to creatively adapt, if you’re able.

  Bill sooner and collect faster – If you offer credit to customers, be sure to bill them promptly. Right now we recommend ensuring that you’re billing just as soon as work is completed. Then consider your collection practices. The time might be right to consider offering your customers a small incentive if they then pay what they owe you super quickly. At a minimum, you need to be following up on receivables a few days before they’re due to ensure your customers remember the invoice and plan to pay on time.

  Hold off on major purchases – While things are so uncertain, big capital expenditures should be postponed if at all possible.

  Manage inventory – Inventory is essentially your business’s cash sitting on a shelf. Now is a great time to consider cancelling or delaying planned inventory purchases. Get creative with current inventory on-hand. Can it be returned or exchanged with your vendor? Are there ways to incent customers to buy current inventory using discounting or other incentives? More ideas for managing inventory can be found here.

  Reach out to your business insurance agent – Some business insurance policies may cover situations like COVID-19, especially if you carry a business continuity policy. You may have Force Majeure coverage providing assistance for financial losses arising out of the inability to bring a project to completion. Reach out to your agent to see what, if any, coverage is applicable to you.

  Consider reducing your payroll expenses – We entrepreneurs are only as strong as our teams. That is what makes managing payroll so hard in light of the likely impact on your co-workers who are often also friends. However, unprecedented times possibly call for unprecedented measures. At this point you should at least begin postponing new hires and considering reducing hours and laying off nonessential employees.

  Pay your bills slowly – While things are in flux, do not pay your bills any faster than you have to. Take advantage of the full agreed payment terms to hold onto your cash longer. The goal should be to pay your creditors as slowly as possible without incurring a negative consequence. You should also reach out to all suppliers, creditors, landlords and banks for possible modified payment terms. Many banks are already offering to modify their existing loans down to interest only or no payments for the coming 3-6 months.

  Break even – Know your break even point to cover fixed expenses and evaluate all expenses. Break-even is your fixed expenses divided by your gross margin %. Great advice is to keep a rolling 13 week cash flow to help make decisions. Jack Harwell explains break even in this video.

  There is a temporary ban in both Kansas and Missouri on evictions, foreclosures, utilities and internet disconnects. Be aware these are temporary and full payment will likely be required at a later date.

• Cash Runway: Calculate how long your cash will last

  Now that you’ve assessed what cash conservation actions you’re planning to take, you’ll need to figure out how long your current cash reserves can last or your “cash runway.” Start with this quick calculation:

  Cash Runway

  • Current cash balances / Monthly cost still happening in virus response months = Your cash runway measured in months

  You might also want to do this calculation a second time including sources of cash that you technically have access to but may be presently hesitant to tap.

  Cash Runway (using all current cash options)

  • Current cash balances + amount of cash that could be tapped (existing credit cards and/or lines of credit) / Monthly costs still happening in virus response months = Your longest currently available cash runway measured in months

  Accessing these lines may or may not be prudent as circumstances continue to develop, but you should have awareness of both timelines. Additional cash runway calculation information can be found here.

   

  Know Your Break Even Number

  Breaking even is not a goal for businesses that want to thrive, but understanding what amount of sales you need to break even is important to survive. Jack Harwell of the Kansas SBDC breaks down the math in this video.

   

• Current Loans: Are you worried about your current SBA loan or another bank loan?

  Talk to your lender now about your existing loans. Loan modifications may be available due to the Coronavirus. Many banks are making no-cost modifications available, but typically you must specifically ask, e.g. interest-only payments for a few months, months of payments pushed off to the end of the loan, etc. Your lender does not want to see you go out of business, talk to them now.

  SBA Loans

  SBA Administrator Jovita Carranza announced an automatic deferment of SBA Disaster Loans through the end of 2020 to help borrowers still paying back SBA loans from previous disasters. By making this change, deferments through December 31, 2020, will be automatic. Now, borrowers of home and business disaster loans do not have to contact SBA to request deferment.

  In addition, the Small Business Debt Relief Program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504 and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal, interest and fees, for six months. This relief will also be available to new borrowers who take out loans within the next six months.

  If you have a non-SBA loan from a bank, reach out to your current bank to see what options they may have available. There are some other regularly accessible sources of funds like your bank’s conventional financing or factoring accounts receivable that may now warrant reconsideration, but there are also some forthcoming emergency loan options.

   

• Paycheck Protection Program: Get help to cover the cost of retaining employees

  Notice: Paycheck Protection Program has reopened

   

  The Paycheck Protection Program resumed accepting applications July 6, 2020, at 9:00 AM EDT in response to President signing the program's extension legislation. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020. 

  The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest or utilities.
  
  You will apply through a bank, credit union, or other government guaranteed lender. 
  
  If you wish to begin preparing your application, you can download a copy of the PPP borrower application form (revised June 24, 2020) to see the information that will be requested from you when you apply with a lender.

  Find an eligible lender

  • Download the PPP calculator (courtesy of the Kansas SBDC at Johnson County Community College) 

  Businesses, even without a personal guarantee or collateral, can apply one of these loans as long as they were operational on February 15, 2020, and had paid employees at that time (even if the owner is the only employee). On a final note, the SBA’s 500-employee threshold includes all types of employees: full-time, part-time and any other status.

  What businesses are eligible for these loans?

  The Paycheck Protection Program offers loans for the following types of businesses experiencing revenue disruption as a result of COVID-19:

  • Small businesses with fewer than 500 employees.

  • Select types of businesses with fewer than 1,500 employees.

  • 501(c)(3) non-profits with fewer than 500 workers.

  • Some 501(c)(19) veteran organizations.

  • Self-employed workers, sole proprietors and freelance or gig economy workers.

  • NEW (June 5, 2020) businesses with owners who have past felony convictions.
    

  Eligible expenses include:

  • Payroll costs (excluding the prorated portion of any compensation above $100,000 per year for any person. Payroll costs include salary, commissions, tips; certain employee benefits including sick leave and health care premiums, and state and local taxes;

  • Mortgage interest (not prepayment or principal payments) and rent payments on mortgages and leases in existence after February 15, 2020;

  • Utilities such as electricity, gas, water, transportation, phone and internet access for services that began before February 15, 2020; and

  • Additional wages paid to tipped employees.

  Will my PPP loan forgiveness be affected if my employee(s) refuse to come back to work?
  (Source: Kansas SBDC at JCCC and the Department of Treasury)

  No. As an exercise of the Administrator’s and the Secretary’s authority under Section 1106(d)(6) of the CARES Act to prescribe regulations granting de minimis exemptions from the Act’s limits on loan forgiveness, SBA and Treasury intend to issue an interim final rule excluding laid-off employees whom the borrower offered to rehire (for the same salary/wages and same number of hours) from the CARES Act’s loan forgiveness reduction calculation. 

  The interim final rule will specify that, to qualify for this exception, the borrower must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower. Employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation. 

  See the full answer to this and more frequently asked questions about PPP loans.

  Shortcuts to more information on PPP Loans, from the U.S. Small Business Administration: 

  • PPP Overview

  • Who Can Apply

  • How to Apply

  • Loan Details and Forgiveness and application form

  UPDATE: PPP Flexibility Act, June 5, 2020
  (Source: AICPA)

  Following is a summary of the legislation’s main points compiled by the organization of accountants, the AICPA:

  • Current PPP borrowers can choose to extend the eight-week period to 24 weeks, or they can keep the original eight-week period.

  • New PPP borrowers will have a 24-week covered period, but the covered period can’t extend beyond Dec. 31, 2020.

  • Borrowers can use the 24-week period to restore their workforce levels and wages to the pre-pandemic levels required for full forgiveness. This must be done by Dec. 31, a change from the previous deadline of June 30.

  • Payroll expenditure requirement drops to 60% from 75% but is now a cliff—rather than a sliding scale—meaning that borrowers must spend at least 60% on payroll or none of the loan will be forgiven. Currently, a borrower is required to reduce the amount eligible for forgiveness if less than 75% of eligible funds are used for payroll costs, but you can still get partial forgiveness (on a sliding scale) if the 75% threshold isn’t met. (Congresspeople and Senators have said the intention was to continue a sliding scale. If Treasury Secretary Mnuchin doesn’t allow the sliding scale, there may be legislation to force that provision.)

  • New borrowers now have five years to repay the loan instead of two. Existing PPP loans can be extended up to five years if the lender and borrower agree. The interest rate remains at 1%.

  • The legislation includes two new exceptions allowing borrowers to achieve full PPP loan forgiveness even if they don’t fully restore their workforce. Previous guidance already allowed borrowers to exclude from those calculations employees who turned down good faith offers to be rehired at the same hours and wages as before the pandemic. The new bill allows borrowers to adjust because they could not find qualified employees or were unable to restore business operations to Feb. 15, 2020 levels due to COVID-19 related operating restrictions.

  The bill allows businesses that took a PPP loan to also delay payment of their payroll taxes, which was prohibited under the CARES Act.
  

  NEW EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program
  (Source: SBA)
  The US Treasury posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application on June 17, 2020. The EZ application requires fewer calculations and less documentation for eligible borrowers.
  
  In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:

  • Are self-employed and have no employees; OR

  • Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR

  • Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

    PPP EZ Forgiveness Application.

    PPP EZ Loan Forgiveness Application Instructions

    PPP Full Forgiveness Application

    PPP Loan Forgiveness Application Instructions (06-16-2020)

  PPP Loan Forgiveness Tools:

  PPP loan forgiveness calculator: spreadsheet/template (Source: BerganKDV)
  PPP loan forgiveness calculator: online estimator (Source: CoastApp.com)

  
  SBA Economic Injury Disaster Loans and PPP
  Can a business get an EIDL and a PPP loan? Yes, small businesses can get both an EIDL and a Paycheck Protection Program loan as long as they don’t pay for the same expenses. However, be sure to check with your financial advisor or lender before taking both types of loans if you are not sure of the specifics.

  Work with your accountant and run the numbers. While you can do the EIDL and PPP (as long as they’re for different expenses), you can’t do the Employee Retention Tax Credit and the PPP, so find out which one is best for your business. 

  EIDL / PPP and Faith-Based Organizations

  All faith-based organizations impacted by Coronavirus (COVID-19) are eligible to participate in the Paycheck Protection Program and the Economic Injury Disaster Loan program, without restrictions based on their religious identity or activities, to the extent they meet the eligibility criteria outlined in the CARES Act. 

  Know Your Options: Financial Assistance Programs for COVID-19

  Rebecca Gubbels of Missouri SBDC at UMKC and Lee’s Summit EDC
  
  

  More resources on PPP for deeper dives:

  • Paycheck Protection Program Fact Sheet, U.S. Department of Treasury

  • FAQs on the Paycheck Protection Program, Greater KC Chamber of Commerce

  • FAQs on the Payment Protection Program, U.S. Senate Committee on Small Business and Entrepreneurship 

  • “What's in the just-passed small-business Paycheck Protection Program,” Kansas City Business Journal

  • Stimulus Bill Update: Additional SBA Relief Available to Coronavirus-Impacted Small Businesses, Husch Blackwell

• Disaster Relief Loans and Grants: What funding is available now?

  Talk to your lender now about your existing loans. Loan modifications may be available due to the Coronavirus. Many banks are making no-cost modifications available, but typically you must specifically ask, e.g. interest-only payments for a few months, months of payments pushed off to the end of the loan, etc. Your lender does not want to see you go out of business, talk to them now.

  Local Disaster Assistance

  Area microlenders and community development financial institutions are hustling to offer interim financing. Their available loan amounts are comparatively small,often capping out at $20,000 or $50,000, but they’re comparatively FAST. 

  These amazing community resources can be quick because they are typically much smaller operations than banks, and they aren’t responsible for taking and protecting depositors’ funds.  
  

  Evergy Hometown Economic Recovery Program
  Evergy is now accepting applications from registered 501(c)3 and 501(c)6 nonprofits for programs and projects focused on aiding the short and long term recovery efforts in our service territory. Grants can be requested in amounts between $5,000.00 and $25,000.00 will be awarded in two phases.
  
  For small business customers that are looking for support, as part of our community support package, Evergy has made significant contributions to two nonprofit small business loan funds. Small businesses can apply for loans from these funds:

  • GKC COVID Small Business Loans: www.alt-cap.org/covid-relief-fund

  • Network KS/Restart Kansas County Loan Fund (Restart Kansas): Call 877-521-8600 or email info@networkkansas.com

  🛑KCMO Small Business Relief Fun
  (Source: Economic Development Corporation of Kansas City)
  The Kansas City Missouri Small Business Relief Loan Fund will provide loans up to $25,000 to help small businesses within the city limits of Kansas City Missouri continue to finance operational expenses during this unprecedented period of economic stress due to the Covid-19 Pandemic. The Fund allows for low interest rate loans, deferred payments for the first 6-12 months, and extended amortization periods of up to five years. There are no minimum credit score and flexible collateral requirements.

  Kansas City AltCap COVID-19 Small Business Relief Fund
  This new community-backed $5 million small business relief loan fund is intended to provide immediate relief to local, small businesses experiencing extreme economic disruption and financial strain as a result of the necessary public health measures to “flatten the curve” and combat the virus.

  St. Louis Small Business Grant Fund
  The City of St. Louis has established a Small Business Grant Fund to assist small businesses that have been severely impacted by COVID-19 and Stay at Home Orders. Through the CARES Act, the total amount of the funding available for disbursement is $4,000,000.00. These grant amounts will be $5,000.00.
  

  Applications for the Small Business Grant Fund will be accepted beginning Wednesday, June 3 at 9:00 AM.

  St. Louis Small Business Resource Fund
  The St. Louis Economic Development Partnership and the St. Louis Development Corporation are offering a 0% percent interest loan program for small businesses in the City of St. Louis and St. Louis County that have sustained economic damage due to the COVID-19 crisis. For questions about the program, please email bizhelp@stlpartnership.com

  🛑St. Louis Gateway Resilience Fund
  As a resource for individuals who are employees or owners of independent businesses affected by this crisis, the Gateway Resilience Fund has been established to provide short-term assistance. The fund is providing $1,000 in direct payment of bills to vendors or $500 directly to applicants. In addition, the St. Louis Downtown Community Improvement District (CID) is offering $5,000 grants to affected small, locally owned businesses in its 180-block area. This will be updated as more resources are identified and become available.

  For more funding options, complete the COVID-19 Financial Assistance Request form. 
  

  Help my business
  find funding

  
  

  Know Your Options: Financial Assistance Programs for COVID-19

  Rebecca Gubbels of Missouri SBDC at UMKC and Lee’s Summit EDC

• SBA Disaster Loans

  The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) expands existing eligibility requirements and provides greater funding opportunities for businesses seeking relief from the federal government. 
  

  SBA Coronavirus Pandemic Disaster Loans
  (Source: America’s SBDC) This chart from the Kansas SBDC provides a comparison of the following SBA coronavirus pandemic disaster loans:

  • EIDL Forgiveness/Advance (grant of up to $10K)
  • PPP (Paycheck Protection Program) SBA 7(a)
  • SBA Express Bridge Loan
  • SBA Small Business Debt Relief Program

  Under the disaster assistance program, businesses are eligible to borrow up to $2 million. 

  Under the SBA 7(a) program, businesses are eligible to borrow up to $10 million with significant loan forgiveness if the funds are used for payroll, lease payments and other general expenses. 

  Under SBA Express Bridge Loan, businesses are eligible to borrow up to $25,000, which may be repaid in full or part by proceeds from an EIDL.

  Under SBA Small Business Debt Relief, the SBA will cover all loan payments on SBA loans for six months.
  

  [Chart] Which SBA loan(s) is right for your business during COVID-19?

• EIDL: SBA Economic Injury Disaster Loan

  The Small Business Administration is offering Economic Injury Disaster Loans (EIDL) for small businesses with substantial economic injury. Here “substantial” means that a business is unable to meet its obligations and unable to pay its regular and necessary operating expenses like rent, staff, etc.

  1. Get the FAQs about EIDL from KCSourceLink
  2. See “SBA Disaster Assistance Loans” in this blog post by the Missouri SBDC at UMKC to prepare the right documents before you apply, Missouri SBDC at UMKC.<
  3. And then, once you have your paperwork in order, apply for disaster assistance via the SBA website

  Another important aspect of the CARES Act for small businesses is that it expands eligibility for the SBA’s Economic Injury Disaster Loans (EIDLs). In early March, the SBA’s disaster loan program was extended to all small businesses affected by COVID-19, but the CARES Act opens this program up further and makes it easier to apply.

  These changes include:

  • EIDLs are now also available to Tribal businesses, cooperatives, and ESOPs with fewer than 500 employees. They are also available to all non-profit organizations, including 501(c)(6)s, and to individuals operating as sole proprietors or independent contractors.

  • EIDLs can be approved by the SBA based solely on an applicant’s credit score.

  • EIDLs that are smaller than $200,000 can be approved without a personal guarantee.

  • Borrowers can receive a $10,000 emergency grant cash advance that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue losses.

  
  

  EIDL and Paycheck Protection Program

  Can a business get an EIDL and a Paycheck Protection Program loan? Yes, small businesses can get both an EIDL and a Paycheck Protection Program loan as long as they don’t pay for the same expenses. However, be sure to check with your financial advisor or lender before taking both types of loans if you are not sure of the specifics.
  
  

  EIDL vs PPP: Chart the Key Differences Between These Major SBA Loans

  Economic Injury Disaster Loans vs. Paycheck Protection Program loans: What are the key differences, and which is best for your business? Download this handy chart that covers the most important facets and loan terms for each so you can plan the best path forward for your business.
  
  

  EIDL Application Checklist for Sole Proprietors and Contractors

  Here's a handy checklist from business experts that highlights the parts of the application that these two types of businesses will complete a little differently. Filling out the form property is key to moving an application along as quickly as possible. Counselors at your local SBDC also can help guide you through these forms.
  

  EIDL / PPP and Faith-Based Organizations

  All faith-based organizations impacted by Coronavirus (COVID-19) are eligible to participate in the Paycheck Protection Program and the Economic Injury Disaster Loan program, without restrictions based on their religious identity or activities, to the extent they meet the eligibility criteria outlined in the CARES Act. 
  
  

  How to Apply for SBA EIDL Program, Missouri SBDC

  Due to the overwhelming number of applicants, the SBA website may go offline from time to time. 

  • When the website is up and running, businesses are encouraged to visit covid19relief.sba.gov/ to apply.

  • When the website is offline, you can still apply via disasterloan.sba.gov/ela/Home/OfflineApply by uploading filled out forms through a link  and emailing filled out forms to disasterloans@sba.gov or mailing physical copies to:
    U.S. Small Business Administration
    Processing and Disbursement Center
    14925 Kingsport Rd.
    Ft. Worth, TX 76155-2243

  Forgivable $10,000 Advance

  The CARES Act provides additional assistance for small business owners and non-profits, including the opportunity to get up to a $10,000 Advance on an Economic Injury Disaster Loan (EIDL). This advance may be available even if your EIDL application was declined or is still pending, and will be forgiven.

  If you wish to apply for the advance on your EIDL, please visit covid19relief.sba.gov/#/ as soon as possible to fill out a new, streamlined application. In order to qualify for the advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.

  
  Tips

  • Print out the required forms and collect required info before you start filling out the application on-line (put your answers on the paper form first and then start filling out on-line, also save as you go as this is a large volume of traffic and the site may glitch) 

  • For those seeking the forgivable "$10,000 Advance" that submitted an application prior to March 30, you will need to go back in and submit again to ensure you receive it.

  • Apply during off-peak hours from 7 p.m. to 7 a.m. is highly recommended. As you can well imagine, the site is busy! 

  • Save often and gather all of your information before you begin to maximize your odds of getting through the process quickly and completely.

  • The SBA website has experienced high demand and outages. When the website is offline, you can still apply via disasterloan.sba.gov/ela/Home/OfflineApply. Apply by uploading your filled out forms through a link on that page or by scanning and emailing your filled out forms to disasterloans@sba.gov. The SBA recommends checking the main application page for availability one final time before submitting via these alternate methods as their online application portal is still the fastest, best way to get your information into the hands of their underwriters.

  • Beware of scams that offer to help you complete a loan application for a percentage of your loan. Your local Small Business Development Center (SBDC) will help you navigate this process for free. Find your office: Missouri SBDC and Kansas SBDC.

  
  More resources on the CARES Act for deeper dives:

  • What Small Businesses Need to Know, U.S. Chamber of Commerce

   

• CARES vs. EIDL vs. PPP vs. ERTC

  Let’s put it all together, with help from our friends at the Kansas SBDC. 

  How To Get Up To $10,000 or More From Uncle Sam for Your Business

    

  The webinar walks through three scenarios. Jump to these timestamps to learn more:

  • 23:15 – Gig-worker, independent contractors, self-employed individuals

  • 32:25 – Growing business before COVID-19

  • 52 – Businesses with over 50% drop in revenue

  • 54:30 – Q&A starts. Read the Q&As right here.

  The webinar outlines three business scenarios and their options and opportunities under the 

  • CARES Act, including SBA Economic Injury Disaster Loans (EIDL)

  • Paycheck Protection Program (PPP) - currently SUSPENDED

  • Employee Retention Tax Credit

  Can a business get an EIDL and a PPP loan? Yes, small businesses can get both an EIDL and a Paycheck Protection Program loan as long as they don’t pay for the same expenses. However, be sure to check with your financial advisor or lender before taking both types of loans if you are not sure of the specifics.

  Can you do the ERTC and the PPP? Nope. Work with your accountant and run the numbers. While you can do the EIDL and PPP (as long as they’re for different expenses), you can’t do the Employee Retention Tax Credit and the Payment Protection Program, so find out which one is best for your business. 

   

• Other Local, Regional and National Grants and Loans

  BY CITY/REGION

  
  Adair County
  

  ADAIR County CARES Act Funding Opportunity
  The State of Missouri received about $2.3 billion of The Coronavirus Aid, Relief, and Economic Security ACT (CARES Act). Adair County’s share is $2,973,240. Adair County will use the guidelines provided by the U.S. Department of Treasury and the State of Missouri in making awards of the funds received under the CARES Act.

  Columbia

  Microenterprise Recovery Loan Program
  (Source: City of Columbia)
  This program provides a fully forgivable loan for qualified local microenterprises with 5 or fewer employees. This document outlines program guidelines, instructions for submitting an application, information needed and timeline for disbursement.
  

  Buchanan County

  CARES Act Information
  Buchanan County received $10,249,541 for use local entities to cover costs incurred due to the public’s health emergency. The County has worked closely with the State Treasurer’s Office and other counties to put together a process to distribute these funds. There are two applications. The County will review Reimbursement Grants (application 1) to cover expenses that fall into the definitions. Small Business Relief Grant Applications will also be reviewed (application 2).

  Excelsior Springs

  #OneTownOneTeamGrant
  (Source: Excelsior Springs Area Chamber of Commerce)
  The funding from this program is meant to serve as a “bridge” while you wait for business to go back to usual or for when more substantial federal funding becomes available. The money available for this grant is from local businesses and community members who have donated specifically to help our Excelsior Springs businesses.

  Kansas City

  Ignite COVID-19 Response Accelerator
  (Source: Black & Veatch, LaunchKC)
  Do you have a solution that can reduce the severity of the coronavirus outbreak, but need help commercializing and rapidly deploying? The Black & Veatch COVID-19 Response Accelerator is designed for growing companies looking to scale emerging solutions to save lives, help communities cope, and protect the economy.

  🛑 KCMO Small Business Relief Fund
  

  (Source: Economic Development Corporation of Kansas City)
  The Kansas City Missouri Small Business Relief Loan Fund will provide loans up to $25,000 to help small businesses within the city limits of Kansas City Missouri continue to finance operational expenses during this unprecedented period of economic stress due to the Covid-19 Pandemic. The Fund allows for low interest rate loans, deferred payments for the first 6-12 months, and extended amortization periods of up to five years. There are no minimum credit score and flexible collateral requirements.
  

  Midwest Music Foundation Relief Fund COVID-19 Emergency Grant
  (Source: Midwest Music Foundation)
  Midwest Music Foundation's Emergency Relief Fund COVID-19 will provide grants to musicians faced with emergency financial loss due to employment suspension because of COVID-19. Funds are based on community donations and will be granted as the money is available. They will be in the form of one-time emergency grants of up to $250 on a first-come, first-served basis.

  🛑 Rocket Relief Fund - early deadline April 24
  (Source: Charlotte Street Foundation, Spencer Museum of Art, ArtsKC – Regional Arts Council, with underwriting from the Andy Warhol Foundation for Visual Arts and Theater League Kansas City)
  An emergency relief fund of $120,000 is now available for Kansas City artists who have been adversely affected by the coronavirus pandemic. Artists within in 80-mile radius of Kansas City can apply for Rocket Relief funds. Beginning May 1, 10 eligible artists will be randomly selected each week to receive benefits until the funds are distributed.
  

  North Kansas City
  

  NKC CARES Small Business Grant Application
  The City Council established the CARES Small Business Grant Program on June 2, 2020, to be administered by the Clay County EDC. This program will issue $150,000 in grant funds to small businesses in North Kansas City. Small businesses can apply for a grant up to $5,000 to reimburse business expenses related to COVID-19. Applications accepted from June 3 to 11:59 p.m. on June 14, 2020.

  Platte County

  Platte County CARES “Survive & Thrive” Small Business Grant Program

  (Source: Platte County EDC)
  The Platte County Commission established the CARES “Survive & Thrive” Small Business Grant Program on June 8, 2020 to be administered by the Platte County EDC. This program utilizes their CARES Act funds to assist small businesses in Platte County, Missouri.
  

  Sedalia

  Small Business Marketing Grant
  (Source: Sedalia Democrat)
  The Phillips Media Group has announced the launch of a community marketing grant program to help local businesses continue advertising during the challenging times created by the COVID-19 crisis. All 10 Phillips Media Group publications are participating in this program, jointly allocating up to $250,000 in matching advertising credits to assist local businesses. Local businesses are an important part of a community’s identity.
  

  Smithville

  CARES Small Business Grant Applications accepted from June 24 – July 10, 2020
  This program will issue up to $100,000 in total grant funds to small businesses in Smithville. Small businesses can apply for a grant up to $5,000 to reimburse business expenses related to COVID-19.
  

  Springfield

  (Source: efactory)
  The City of Springfield has allocated over $400,000 of CARES Act funding for forgivable business loans. Loans of up to $10,000 will be issued through the program.
  

  St. Joseph

  City of St. Joseph Strong Small Business Retention Program

  Through federal funds received, the City of St. Joseph is making available to small businesses (1-20 full-time employees) loans to address local business impact for COVID-19.

  St. Louis

  St. Louis Small Business Grant Fund Applications accepted beginning Wed., June 3 at 9:00 AM
  The City of St. Louis has established a Small Business Grant Fund to assist small businesses that have been severely impacted by COVID-19 and Stay at Home Orders. Through the CARES Act, the total amount of the funding available for disbursement is $4,000,000.00. These grant amounts will be $5,000.00.
  

  Applications for the Small Business Grant Fund will be accepted beginning Wednesday, June 3 at 9:00 AM.
  
  🛑Arch Grants Relief Fund SUSPENDED
  Reallocated Arch Grants help support previous Arch Grants Founders. 

  Arch Grants Global Startup Competition 2020
  Arch Grants will still hold their annual competition and award $50K in equity free funding to 20 startups, and 5 specifically to geospatial startups. Applications open on May 15.
  
  🛑Gateway Resilience Fund  TEMPORARILY SUSPENDED
  (Source: St. Louis Community Foundation)
  As a resource for individuals who are employees or owners of independent businesses affected by this crisis, the Gateway Resilience Fund has been established to provide short-term assistance. 
  
  🛑Neighborhood Small Business Lift Grant (Deadline May 1) 
  (Source: St. Louis Community Foundation)
  The Neighborhood Small Business Lift grant is available for neighborhood-serving small businesses to maintain staff, facilities and other essential costs. Grantees may also use funds to adapt to remote operations where possible.
  
  RAC Artist Relief Fund
  (Source: Regional Arts Commission)
  The Regional Arts Commission of St. Louis Artist Relief Fund will award grants of $500 or $1,000 to working artists who live in St. Louis City or St. Louis County whose immediate creative practices and incomes are being adversely impacted by the COVID-19 crisis.
  

  🛑Small Business Relief Program Closes May 17
  (Source: Saint Louis County Cares)
  The Small Business Relief Program offers a one-time grant of up to $15,000 to companies that had 50 or fewer full-time workers as of March 1. Grants will be capped at $2.5 million per county council district. Closes May 17.

  The Small Business Resource Discretionary Grant Program
  (Source: St. Louis Port Authority, St. Louis Economic Development Partnership)
  This new St. Louis County program will give $500 discretionary grants to help sole proprietors, contract workers, gig workers, 1099 workers and other businesses who do not qualify for our Small Business Resource Program.
  
  Small Business Resource Fund
  (Source: St. Louis Partnership)
  The St. Louis Economic Development Partnership and the St. Louis Development Corporation are offering a 0% percent interest loan program for small businesses in the City of St. Louis and St. Louis County that have sustained economic damage due to the COVID-19 crisis. For questions about the program, please email bizhelp@stlpartnership.com

  St. Louis Art & Music Fund
  (Source: GoFundMe)
  This helps musicians and bands offset by canceled gigs.
  

  University City Forgivable Loan Program
  (Source: University City, Missouri)
  The program sets aside $1 million of funds, that can only be used to promote economic development activity, for an eligible small business to access for addressing operational needs such as payroll, payment to service providers, utilities, and suppliers.  Funds cannot be used for rent or capital purchases. 
  
  

  BY STATE

  Kansas Funds

  🛑Kansas HIRE Fund - SUSPENDED
  (Source: Kansas Department of Commerce)
  UPDATE: Due to the overwhelming initial response, all initial funds through the HIRE Fund have been allocateD. However, the department is keeping its form open and will continue to collect information from Kansas hospitality businesses on the losses they are facing due to the COVID-19 pandemic.

  Missouri Funds 

  🛑Ameren Energy Assistance for Employees - SUSPENDED
  If any of your employees have been affected by reduced hours or closings, let them know that Ameren is providing $1,000,000 in energy assistance to residential Missouri customers affected by COVID-19.

  
  

  BY INDUSTRY

  Innovation and Tech

  KC Ignite COVID-19 Response Accelerator
  (Source: Black & Veatch, LaunchKC)
  Do you have a solution that can reduce the severity of the coronavirus outbreak, but need help commercializing and rapidly deploying? The Black & Veatch COVID-19 Response Accelerator is designed for growing companies looking to scale emerging solutions to save lives, help communities cope, and protect the economy.
  

  🛑StL Arch Grants Relief Fund
  Reallocated Arch Grants help support previous Arch Grants Founders. 

  StL Arch Grants Global Startup Competition 2020
  Arch Grants will still hold their annual competition and award $50K in equity free funding to 20 startups, and 5 specifically to geospatial startups. Applications open May 15.
  
  MOSS launches COVID-19 Solutions Fund
  Mozilla launched a COVID-19 Solutions Fund as part of the Mozilla Open Source Support Program. The fund will provide awards of up to $50K each to open source technology projects which are responding to the COVID-19 pandemic in some way.
  

  Newton Award for Transformative Ideas during the COVID-19 Pandemic - DEADLINE May 15
  (Source: Department of Defense)
  For researchers at institutions of higher education, these grants of $10K to $100K are aimed at supporting a “transformative idea” to resolve challenges, advance frontiers and set new paradigms in areas of immense potential benefit to DoD and the nation at large.
  

  National - SBIR Grants

  2019 Novel Coronavirus Medical Countermeasure Partnership Opportunities
  (Source: Biomedical Advanced Research and Development Agency)
  BARDA, part of the U.S. Department of Health and Human Services is continuing to work on identifying promising medical countermeasures and technologies to combat the 2019 novel coronavirus.

  Request for SBIR/STTR Phase I Proposals Addressing COVID-19
  (Source: National Science Foundation)
  Small businesses who are interested in submitting NSF SBIR or STTR Phase I proposals can apply through the FastLane process.

  • COVID-19 Proposal Instructions
  • FastLane Guide

  
  Agriculture + Farming

  🛑Farmer Relief Fund - DEADLINE April 23
  (Source: American Farmland Trust)
  AFT’s Farmer Relief Fund will award farmers with cash grants of up to $1,000 each to help them weather the current storm of market disruptions caused by the coronavirus crisis. Initially, eligible applicants include any small and mid-size direct-market producers. These are defined as producers with annual gross revenue of between $10,000 and $1 million from sales at farmers markets and/or direct sales to restaurants, caterers, schools, stores, or makers who use farm products as inputs. 
  

  Farmers Market Promotion Program Deadline: May 26, 2020.
  (Source: USDA)
  The purpose of the Farmers Market Promotion Program (FMPP) is to increase domestic consumption of, and access to, locally and regionally produced agricultural products, and to develop new market opportunities for farm and ranch operations serving local markets by developing, improving, expanding, and providing outreach, training, and technical assistance to, or assisting in the development, improvement, and expansion of, domestic farmers markets, roadside stands, community-supported agriculture programs, agritourism activities, and other direct producer-to-consumer market opportunities. 
  

  Local Food Promotion Program Deadline: May 26, 2020.
  (Source: USDA) 
  The Local Food Promotion Program (LFPP) offers grant funds with a 25% match to support the development and expansion of local and regional food business enterprises to increase domestic consumption of, and access to, locally and regionally produced agricultural products, and to develop new market opportunities for farm and ranch operations serving local markets. There are two types of project applications are accepted under LFPP—planning grants and implementation grants. Applicants can apply for either but will receive only one type of grant in the same grant cycle. Eligible entities may apply if they support local and regional food business enterprises that process, distribute, aggregate, or store locally or regionally produced food products. 
  

  USDA Microloan Programs
  (Source: USDA)
  The focus of Microloans is on the financing needs of small, beginning farmer, niche and non-traditional farm operations, such as truck farms, farms participating in direct marketing and sales such as farmers’ markets, CSA’s (Community Supported Agriculture), restaurants and grocery stores, or those using hydroponic, aquaponic, organic and vertical growing methods.

  USDA Implements Measures to Help Rural Businesses Affected by COVID-19 
  (Source: USDA)
  USDA Rural Development has taken a number of immediate actions to help rural residents, businesses and communities affected by the COVID-19 outbreak. Rural Development will keep our customers, partners, and stakeholders continuously updated as more actions are taken to better serve rural America. 
  
  

  Arts

  🛑KC Rocket Relief Fund - SUSPENDED
  (Source: Charlotte Street Foundation, Spencer Museum of Art, ArtsKC – Regional Arts Council, with underwriting from the Andy Warhol Foundation for Visual Arts and Theater League Kansas City)
  An emergency relief fund of $120,000 is now available for Kansas City artists who have been adversely affected by the coronavirus pandemic. Artists within in 80-mile radius of Kansas City can apply for Rocket Relief funds. Beginning May 1, 10 eligible artists will be randomly selected each week to receive benefits until the funds are distributed.

  St. Louis Art & Music Fund
  (Source: GoFundMe)
  This helps musicians and bands offset by canceled gigs.
  

  STL RAC Artist Relief Fund
  (Source: Regional Arts Commission)
  The Regional Arts Commission of St. Louis Artist Relief Fund will award grants of $500 or $1,000 to working artists who live in St. Louis City or St. Louis County whose immediate creative practices and incomes are being adversely impacted by the COVID-19 crisis.
  
  The Actors Fund
  To help the community during this public health crisis The Actors Fund has partnered with other entertainment industry organizations to provide emergency financial assistance to those who have immediate financial needs. Support is provided through a number of funds to actors, dancers, film and television workers, musicians, theater workers, and Hollywood support staff.
  

  Artist Relief
  (Source: Artist Relief)
  To support artists during the COVID-19 crisis, a coalition of national arts grantmakers have come together to create an emergency initiative to offer financial and informational resources to artists across the United States.

  Arts Administrators of Color: Arts Leaders of Color Emergency Fund
  Arts Administrators of Color has created the Arts Leaders of Color Emergency Fund, which supports BIPOC (Black, Indigenous, and People of Color) artists and arts administrators impacted by COVID-19 through $200 microgrants.

  Midwest Music Foundation Relief Fund COVID-19 Emergency Grant
  (Source: Midwest Music Foundation)
  Midwest Music Foundation's Emergency Relief Fund COVID-19 will provide grants to musicians faced with emergency financial loss due to employment suspension because of COVID-19. Funds are based on community donations and will be granted as the money is available. They will be in the form of one-time emergency grants of up to $250 on a first-come, first-served basis.

  Motion Picture & Television Fund: COVID-19 Relief Fund
  The COVID-19 Relief Fund aims to help those workers in the entertainment industry who are suffering COVID-19 related hardships. Applicants must be industry members that demonstrate financial need and meet minimum earnings or hours thresholds.

  Twenty Summers: Emergency Arts Fund
  The Emergency Arts Fund provides grants to artists (up to $500) and arts organizations (up to $1,000) suffering from unexpected and unmanageable financial loss as a result of the coronavirus. Arts organizations and artists must be nominated by a board member, staff member, supporter, or other person.

  Will Rogers Motion Picture Pioneers Foundation: COVID-19 Emergency Grant
  The COVID-19 Emergency Grant aims to assist individuals who work in theatrical exhibition. In order to be eligible, individuals must have worked in theatrical exhibition for a minimum of five years, derive their primary source of income from the movie theater circuit, and have been furloughed or laid off due to COVID-19.

  Restaurants and Bars

  Bartender Emergency Assistance Program
  (Source: USBG National Charity Foundation)
  Grant assistance is available for through this program if you meet the requirements. You do NOT need to be a USBG member to apply for a philanthropic grant.

  🛑Food and Beverage Industry Relief Fund - SUSPENDED
  (Source: James Beard Foundation)
  To help bring swift economic relief to these essential businesses, the James Beard Foundation is launching a fund that will be gathering support from corporate, foundation and individual donors to provide micro-grants to independent food and beverage businesses in need.

  Southern Smoke: Emergency Relief Program
  (Source: Southern Smoke)
  The Emergency Relief Program provides emergency funding to restaurant and bar owners and employees, as well as restaurant supplier employees, who are facing unforeseen expenses that cannot or will not be covered by insurance.
  

   

  CROWDFUNDING

  How to Use Crowdfunding to Support Your Small Business through Coronavirus
  (Source: U.S. Chamber)
  As the coronavirus pandemic continues to financially impact small businesses, a crowdfunding campaign could help you stay afloat.

  Small Business Relief Initiative
  (Source: GoFundMe)
  The Small Business Relief Initiative was started by GoFundMe to help small businesses that have been affected by the COVID-19 pandemic and empower their communities to rally behind them. GoFundMe has partnered with Yelp, Intuit QuickBooks, GoDaddy, and Bill.com to provide small business owners with the financial support and resources needed to continue running their businesses during and after the coronavirus crisis.

  
  OTHER LOANS

  EnrichHER Business Financing
  EnrichHER provides direct loans and lines of credit up to $250K for business with at least $100K in revenue or credit scores above 680.

  Main Street New Loan Facility
  (Federal Reserve)
  The Federal Reserve released details on the Main Street New Loan Facility today. The facility is intended to facilitate lending to small and medium-sized businesses that are not eligible for the SBA Paycheck Protection Program.  Here’s some additional context from Polsinelli law firm on the Federal Reserve’s Main Street Business Lending Program.

  Mainvest and Zero-Interest Loans
  (Source: Mainvest)
  If you have an existing brick & mortar business that has been negatively effected by the COVID-19 outbreak and you launch a capital raise on Mainvest, you may be eligible to receive a $2,000 zero-interest loan immediately*. Then through your capital raise, you can receive over $100,000 of investment from your community.

  Latino credit unions and minority grant options
  (Source: Bankrate)
  In an effort to help Latino businesses rebound, Bankrate compiled the best ways for Latinos to grow their business and overcome the funding gap. Near the end of the article is a list of Latino credit unions and minority grant options.

  
  

   

   

  OTHER GRANTS

   

  Best Small Business Grants for 2020, Including Coronavirus Grants
  (Fundera)
  Small business owners across the country are feeling the impacts of the coronavirus outbreak and the economic ripples it’s caused. Check out these coronavirus small business grants that your business might be eligible for.

   

  And we’ve pulled out a few relevant grant opportunities below.   
  

   

  Hello Alice Offers "Business for All" Emergency Grant
  Hello Alice is offering $10,000 grants being distributed immediately to small business owners impacted by coronavirus.
  

  Beauty Industry $1,000 Relief Grants
  (Source: Beauty Changes Lives)
  These $1,000 grants will provide financial assistance to beauty professionals or students of beauty programs, whose lives have been drastically changed by the mandated closures in response to COVID-19.
  

  The Doonie Fund
  The Doonie Fund makes micro investments of $100 in Black women entrepreneurs.

  GoFundMe: Small Business Relief Fund
  (Source: GoFundMe)
  Small businesses that have been negatively impacted by the coronavirus crisis can sign up on GoFundMe to start a fundraiser to benefit their small business. If the business raises $500 on their GoFundMe and meets certain eligibility criteria, they may be considered to receive a $500 matching grant from the Small Business Relief Fund.
  

  IFundWomen COVID-19 Relief Fund
  The IFW COVID-19 Relief Fund provides microgrants to women-owned businesses that are being impacted by this crisis.
  

  Nav: Small Business Grant Contest DEADLINE MAY 30
  (Source: Nav)
  Nav is giving grants to small businesses that tell a story of preservation and opportunity in the face of a past or ongoing challenge.
  

  Professional Beauty Association COVID-19 Relief Fund
  (Source: Professional Beauty Association)
  The PBA COVID-19 Relief Fund will provide $500 to licensed beauty professionals who are unable to work due to COVID-19. The funding is intended to be emergency aid for short-term immediate needs such as food and bills. 
  

  Red Backpack Fund
  (Source: Global Giving)
  The Spanx by Sara Blakely Foundation has donated $5 million to support female entrepreneurs in the wake of COVID-19. GlobalGiving will oversee the Red Backpack Fund, making 1,000 grants of $5,000 each to female entrepreneurs in the United States to help alleviate the immediate needs and support the long-term recovery of those impacted by this crisis.
  

  Salesforce Care Small Business Grants 
  Salesforce is partnering with Ureeka to offer eligible small businesses the opportunity to receive a $10,000 grant to help them through the COVID-19 outbreak.  Grant Applications open for Missouri and Kansas on April 27.  

  🛑 Sam’s Club Small Business Grants DEADLINE May 14
  (Source: LISC)
  Thanks to a $1 million grant from Sam’s Club, LISC will deploy $10,000 grants to small businesses, especially those enterprises owned or led by women, minorities and veterans, who often lack access to affordable capital. Para leer esta información en español, haga click aquí.

  🛑 Save Small Business SUSPENDED
  (Source: U.S. Chamber of Commerce Foundation)
  The Save Small Business Fund is a grantmaking initiative offering short-term relief for small employers in the United States and its territories. Funded by corporate and philanthropic partners, the Save Small Business Fund is a collective effort to provide $5,000 grants to as many small employers as they can. 
  

  SheaMoisture Community Commerce Fund
  (Source: SheaMoisture)
  With SheaMoisture's $1Million Fund, small minority and women of color-owned businesses can apply for funding under different initiatives:
  

  • 🛑$100,000 Unsung Businesses

  • 🛑Black Business Relief Fund in partnership with 'We Buy Black'

  • Women of Color Entrepreneur E-Lab 

   

  Verizon Small Business Recover Fund - REOPEN ON MAY 14
  (Source: LISC)
  UPDATE: Round 1 is closed, but they’ve opened Round 2 and are still accepting applications. These grants help small businesses fill urgent financial gaps until they can resume normal operations or until other more permanent financing becomes available. 
  

   

   

  OTHER OPPORTUNITIES

   

  COVID-19: Ad credits for Google Ads Small and Medium-sized Businesses
  Google is giving SMBs worldwide $340 million in ad credits, which can be used at any point until the end of 2020 across Google Ads platforms. SMBs who have been active advertisers since the beginning of 2019 will see a credit notification appear in their Google Ads account in the coming months. 
  

   

  Microsoft Office 365 Trial
  New in March 2020, a free 6-month Office 365 E1 Trial, including Microsoft Teams, is now available. Microsoft is making this special E1 Trial license available in response to the increased need for employees to work from home (WFH) in response to the COVID-19 (coronavirus) outbreak.
  

  Yelp Relief Fund
  Yelp announced $25 million in relief, primarily focused on supporting independent local restaurant and nightlife businesses, in the form of waived advertising fees, and free advertising, products and services.
  

• Loan Documents: Prepare these documents before you apply for disaster assistance.

  The financial assistance programs available for COVID-19 relief have a variety of business and personal documentation required. Check the online application forms or with your banker to understand what you will need to prepare. Use the following list developed by the Missouri SBDC at UMKC as your guide.

  And do be sure to get your paperwork in order before you begin the application process. 

  
  Required Documents

  These are the minimum required documents for your EIDL application. 

  A note about personal documentation: If no one in your company has a greater than 20% stake, at least one owner will have to step up to provide this information and personally guarantee the loan. You and any business partners should begin to think about how to make that decision or share that responsibility equitably now.

  SBA Form 5 
  This is the foundation document for the application. Be sure to select “Economic Injury” as the application type. Download the SBA Form 5 form can be downloaded in preparation for the online application process.

  Past 3 Years of Business Tax Returns 
  If you’ve been in business less than three years, provide as many returns as you have filed. Tax returns hold more sway and legitimacy than internally prepared financials. There are reasons to consider filing your 2019 return as soon as possible. Do also be aware that the IRS has extended the deadline to both file and pay your taxes until July 15th. Missouri has followed suit.

  Most states have not yet extended tax filing deadlines. While that is likely to eventually happen, if you’re going to owe state taxes, we recommend still paying the amount that you’re likely to owe in state taxes before April 15.

  Past 3 Years of Personal Tax Returns 
  Anyone who owns 20% or more of your company will need to provide the last three years of their personal tax returns.

  4506-T 
  While you’ll be asked to fill in recent tax information, the SBA will have you authorize them to check with the IRS to ensure accuracy using a 4506-T form. Be sure to get your entity(s) legal names listed accurately. Download the 4506-T form. 

  2019 Income Statement 
  Show your company’s performance for each month of 2019 as well as the year’s total. Required if your 2019 taxes have not yet been filed

  2019 Balance Sheet 
  This provides perspective on what your company owned at the end of a “normal year” and whether those assets were purchased by owners (equity) or other people’s money (debt). Required if your 2019 taxes have not yet been filed.

  Personal Financial Statement 
  All company owners and investors with greater than a 20% ownership stake must provide a current listing of their personal assets, debts and net worth. Download the Personal Financial Statement form.

  Business Debt Schedule 
  This gives required details about all current debts. This form should be prepared in advance of your application. Download the Business Debt Schedule form.

  
  

  You may also need:

  
  

  2020 Monthly Income Statements 
  Further evidence of how your company was doing prior to the beginning of the pandemic response.

  Current Balance Sheet 
  This gives the most recent statement of assets, equity, and debt.

  Business Narrative 
  The SBA or any new lender will need to have some background information about your business. Create a professional business summary of:

  • Who you are and why your company was performing well prior to COVID.

  • How you’ve retooled in these unexpected circumstances:

    • This should include measurement of your decreased customer traffic, reduced sales, and other recent (and anticipated!) business harm.

    • It should also include what actions you’ve taken to solve your cash flow needs outside of this loan request.

  • How much money you need and what you will use it for:

    • You should be ready to tell the SBA what amount represents 6-months of your typical expenses. However, your loan amount will be calculated by the SBA to be the equivalent of 6 months of business expenses. As such, make double, extra sure your financial information entered is correct!

    • Loan request may not exceed $2 million

  • How you plan to be able to pay any new loan back:

    • No payments will be required until 1 year later

    • Prepare a written description of how you’ll be able to repay the loan amount (automatically amortized over 30 years to keep payments low) and the other assumptions you’ve included. The SBA knows this is unprecedented and that we’re all trying to figure things out. However, you must demonstrate ability to synthesize all that you know so far about your company, your industry, and your customers and make some best educated guesses.

    • Should ideally include 3 years of projected income statements (spread monthly for year 1) and accompanying balance sheets

  
  

  Business Licenses

  • City

  • County

  • State

  
  

  Personal Credit Score 
  All lenders will review 20+% owners’ credit history and credit scores. Even in disaster, historical evidence of repaying creditors is still the best indicator of likelihood to pay new creditors. While not something you need to actually submit like the rest of these items as lenders will independently pull this information themselves, you should proactively check all three of your credit reports and scores either directly with Experian, Equifax, and TransUnion or with a reputable aggregator like Fair Isaac Corporation (FICO).

  
  

  Entrepreneurial service agency Justine PETERSEN has resources to assist with personal credit building and repair, if necessary.

   

• Helpful Definitions: Review these terms as you prepare your application(s)

  Some terms you’ll need to know to complete the paperwork to apply for small business disaster assistance:

  Balance sheet - a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time. Learn more here

  If you use an accounting system, you should be able to pull a balance sheet for the required time period. If you do not, there are templates available on line that you can fill in.

  Business debt schedule (also called schedule of liabilities) - gives required details about all current debts. The SBA has a preferred method of presenting that information. https://www.sba.gov/sites/default/files/tools_sbf_sba202.pdf

  Income statement (also known as profit and Loss statement or earnings statement) - a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year. These records provide information about a company's ability or inability to generate profit by increasing revenue, reducing costs, or both. Learn more here

  If you use an accounting system, you should be able to pull a profit and loss statement for the required time period. SCORE offers Financial Statements Templates: https://www.score.org/resource/business-planning-financial-statements-template-gallery

  Personal credit score - a statistical number that evaluates a consumer's creditworthiness and is based on credit history: number of open accounts, total levels of debt, and repayment history. Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner. You should proactively check all three of your credit reports and scores either directly with Experian, Equifax, and TransUnion or with a reputable aggregator like Fair Isaac Corporation (FICO).

  Personal financial statement - a document or spreadsheet outlining an individual's financial position at a given point in time. A personal financial statement will typically include general information about the individual, such as name and address, along with a breakdown of total assets and liabilities. The SBA has a preferred method of presenting that information. https://www.sba.gov/document/sba-form-413-personal-financial-statement-7a504-loans-surety-bonds

   

• Tax Relief

  Coronavirus Tax Relief and Economic Impact Payments
  (Source: IRS)
  The IRS offers tax help for taxpayers, businesses, tax-exempt organizations and others – including health plans – affected by coronavirus (COVID-19).

  Two refundable payroll tax credits help reimburse small and midsize businesses, dollar for dollar, for the cost of providing coronavirus-related leave. 

  • Deferral of Employer-side FICA Payroll Taxes - can defer the employer portion of FICA taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022. 

  • Employee Retention Tax Credit - adds a tax credit for employers to encourage businesses to keep workers on payroll during the crisis. 

  • Filing and Payment Deadlines: Q&A 

  More on Employee Retention Tax Credit
  (Source: IRS and Kansas SBDC)
  Employee Retention Tax Credits could pay for 50% of your payroll for the rest of 2020 if:

  • you can afford to still pay at least 50% of your payroll for the near future

  • your business has suffered a significant loss due to COVID-19 (defined as a quarter being 50% less than the same quarter last year)

  • you think that the economic injury might continue (the tax credit only lasts until a subsequent quarter hits 80% of the same quarter last year, or Jan. 1, 2021)

  Compare that to the Paycheck Protection Program, which offers a forgivable loan equal to 8 weeks of payroll and a small portion of non-payroll expenses. 

  Work with your accountant and run the numbers. While you can do the EIDL and PPP (as long as they’re for different expenses), you can’t do the Employee Retention Tax Credit and the PPP, so find out which one is best for your business. 

  All You Wanted To Know about Maximizing Your Tax Credits through the CARES Act
  (Source: Markowitz Accounting)
  The ERTC is the gift that could potentially keep on giving, quarter after quarter for the rest of the year.

  All You Wanted to Know about the Employee Retention Tax Credit
  (Source: Markowitz Accounting)
  Assuming you have under 100 employees, the ERTC is a credit of 50% of all qualified wages in a given quarter.

  
  

  STATE

  Tracking State Legislate Responses to COVID-19
  (Source: Tax Foundation)
  The Tax Foundation provides information on state legislatures’ schedules, adjustments and status of the state’s budget, and the state’s rainy day fund (RDF) balance as a percentage of the prior year’s general fund budget.
  

  Kansas Tax Relief
  The filing and payment date for state income taxes and privilege tax is extended from April 15 to July 15, 2020. This does not apply to estimated tax payments due April 15, 2020. See Executive Order No. 20-13.

  Missouri Extends Tax Filing Deadline to July 15, 2020
  (Source: Missouri Department of Revenue)
  The filing deadline for tax returns has been extended from April 15 to July 15, 2020. Mirroring the federal guidance issued by the IRS, the Missouri Department of Revenue announced that it will provide special tax filing and payment relief to individuals and corporations in response to the COVID-19 outbreak. 

  
  FEDERAL

  Tax Credits through the Families First Coronavirus Response Act
  (Source: BKD CPAs and Advisors)
  BKD walks you through the details, but here’s the high level information: 

  • Payroll Credits for Required Paid Sick & Family Leave: The paid sick time payroll tax credit can be claimed on a quarterly basis, equal to 100% of the amount of sick leave wages paid. The credit is refundable if it exceeds the amount the employer owes in payroll tax.

  • Credits for Sick & Family Leave for Certain Self-Employed Individuals: Self-employed workers, including independent contractors and gig economy workers, also can claim a credit against their regular income taxes related to sick or family leave.

  Forgivable Paycheck Loan or Tax Credit: You Can’t Claim Both, Which Is Better?
  (Source: Forbes)
  You cannot get both a small business loan under the PPP and also claim a tax credit, so some comparison is needed.SBA lenders have details, though there has been controversy and hiccups in rolling out the program.

  IRS Coronavirus Tax Relief Center
  (Source: IRS)
  The filing deadline for tax returns has been extended from April 15 to July 15, 2020. The Treasury Department and the Internal Revenue Service are providing special tax filing and payment relief to individuals and businesses in response to the COVID-19 Outbreak.

  Filing and Payment Deadline Questions and Answers
  (Source: IRS) 
  These Q&As address the federal filing and payment extension to July 15 due to the COVID-19 (coronavirus) outbreak. These Q&As currently include information on the additional extension to Oct. 15, first quarter estimated tax payments, IRAs and HSAs.