How Do I Sign Georgia Banking Presentation

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so basically the criteria for getting a loan is the same as it has always been for disaster loans you have to have credit that is satisfactory to SBA I'm not going to tell you a credit score I'm not going to tell you our formula because that's not what we're here for but you have to have satisfactory credits things such as tax liens may be acceptable if there's a workout agreement of child support delinquent child support there's usually a reason for the crime but if the person has to work out agreement then that makes all the difference in the world we are called cashflow lenders which means that the business has to have the funds to be able to repay the loan and the way we establish that is to look at the history of the business their projections look at what their expenses are their payments on fix debts and see if there are some money left over for a loan payment now I'm going to say something in a way nobody to misunderstand every loan has a built in four month deferment that four months means that the business does not have to begin repaying the loan the four months are from the date of the promissory note it's not from the date the business recovers it's not from the date that the injury started it's not from the date where they feel like starting to pay it is from the promissory note date but that is a good way for a business to have a little recovery time before they have to start to repay the loan they must be eligible and to be eligible of course it has to be whoever's applying this business but it has to be physically located the business has to be physically located in a declared County and they have to be able to show that the losses were due to the coronavirus not down turned an economy or not because you know nobody wants their product anymore you can't we cannot help the business for any other reason other than the economic challenges that they're experiencing for coronavirus next slide please okay eligible entities can borrow up to two million dollars and the first thing the business owners going to say is okay I want two million dollars it's not established that way we look at the history of the business hopefully the last three years up to the most current month and we look at what their needs are and when we're talking about needs I'm talking about their ability to pay for things using their own reserve if there is no cash reserve then we're going to look at their payments on fixed at their payroll quarterly taxes lease payment mortgage payment whatever their normal operations are and we're going to project how long they need to have let's say support from the SBA loan and we're going to lend them that much so two million is the top but their loan may only be fifty thousand because that's what that business needs the interest rates are fixed which means they're not going to change and it's fixed at 3.75 percent for small businesses 2.75 for a non-profit and we can go out as far as 30 years if necessary to make the loan payments affordable so again it's got to be tied to the coronavirus number one they've got to have repayment ability satisfactory credit being a declared county and then what we're talking about as far as working capital is not their lost sales not their profit we're talking about what they need to sustain the business in a manner they could have operated had the disaster not occurred meaning their normal operations and six deaths normal expenses six deaths next slide please okay we can borrow up to 25,000 with out pledging collateral our preferred collateral is real estate so if the business has real estate that's what we're going to take second third fourth 15th position doesn't matter but we won't penalize somebody if they don't have real estate or they don't have enough equity in the real estate we will take whatever assets we can that are reasonable somebody asked me the other day if you know we took stocks and bonds and that's not a typical thing for us so collateral and let's say we analyze the loan and we said okay it looks like we can approve you for loan for 35,000 but the individual didn't want to pledge collateral but they wanted the loan they can choose to borrow up to the 25,000 and not pledge collateral so all kinds of options by the same token if they end up overtime needing more than the 25,000 they can request an increase and provide additional financial information and we can consider that there's all types of loan modifications which are changes in the loan change in collateral change in loan amount all of those types of things that we can analyze but the more changes you have the more time it takes for disbursement and so what we want to do is try to set them up right the first time and if over time they get let's say thirty-five thousand dollar loan and they get to the twenty five thousand balance they can ask our servicing office to release the collateral and they can consider it next slide please okay so who's eligible just about everybody in the world again try to be declared county and you have to have a physical presence in the county so you could be a hotel you could be a stadium smaller stadium charter boat manufacturer sports vendor rental property owners that's a big one restaurants they're hurting retailers souvenir shops travel agencies wholesalers anybody who qualifies as a small business just about its going to be eligible so again the key first yes we got to have a disaster declaration we've got to have a disaster declaration that includes the county that the business is located in and then the business has to apply and they shouldn't short guess their self and say go I'm never going to get alone my car that's not that good or whatever the only cost to apply is the time it takes to complete the application package that's it so I recommend everybody take a chance on getting dekinai McKenzie alone if they need that but again the criteria has to be small business so we're going to have to look up in the North American industry classification system look at the number look at the table see the revenue or the number of employees in case of manufacturer to see if they were eligible so you know any any kind of business just about is eligible from landscapers to like I said big hotels if they qualify as a small business next slide please alright where we're different and you may have dealt with SBA disaster loans before but if not we don't work with a bank the funds come direct from the Treasury so once the loan is approved then we order the funds and it goes direct deposit to their account no cost to apply again which is is good and there's no obligation to take the loan of this officer there may be opportunities where some business has business interruption and they might be eligible for that and they say well I don't want to apply and get this loan because I'm waiting to hear from the insurance then if they go through the whole process and we offer them the loan and they say well I want to wait on insurance we can withdraw the loan we can hold it in suspense up to six months and during that time if they want the loan they can pretty well reactivate it so that's another difference they so it's kind of held again the $25,000 is it quite a sum of money for unsecured loan like a credit card loan and let's say that in many communities they've had loans from Hurricane sandy or flooding or some other disaster we cannot consolidate the SBA loan into this loan every disaster has its own money earmarked and a lot of times the interest rates are different so we can't consolidate but if the business is having problems making the payments on previous disaster looms that can certainly call the servicing office if that's where their loan is and ask for a deferment of the payment next slide please okay these are the following requirements basic things application proof of income we get from federal tax returns we want to look at the liability so that we can make the payments on the fixed debts and that's the best way to do it and the personal financial statement and Marilyn is going to go over those in more detail I see a note up here about physical presence and what we're talking about is wherever the business is located headquarters of the business where they're located must be in a declared County even if a home-based business that's fine next slide please there are some filing requirements and you'll notice if you downloaded your application there's a document there that says filing requirements and some filing requirements are for applying for physical losses and some are for economic the key to the economic injury is to provide that last item there the additional filing requirements providing monthly sales figures says again we're looking at what the business would normally do and what's happening now and what they're projecting for the future next slide please all right some of the questions that people ask are about agricultural enterprises maybe you're in kind of a rural area and there are farms and they go we're hurting - well SBA doesn't lend to farmers for disaster loans so they're not eligible religious organizations we have a prohibition for them so churches are not eligible charitable organizations are not eligible gambling concerns if you have you know let's say we're working with the tribal concern and they're involved in the gambling then we have to take a hard look at if the revenue from the gambling is more than one third of their gross annual revenue casinos and racetracks same kind of things so I don't want you to get stuck on you know who's eligible what's eligible those are just general things but I want you to be aware they're you know we're not all - everything we are most - everyone this is how to apply and again Maryland is going to go over that and the best way to remember how to apply online is there sba.gov forward slash disaster that makes it kind of easy next slide okay and again I can't thank you enough for carving out this time especially on short notice to help us partners with SBDCs we couldn't do it without you saying with the SBA district and regional office and branch offices score without your help and guiding the business applicant so a lot of times is not financially astute but they are very customer or savvy you know they're gonna go whoa I can't do this I don't understand we're just talking about recording what you normally did as far as sales and just project and of course nobody knows when this is going to end so just you know projected for the next four months or six months or however long you think SBA is really gonna determine the loan amount so you know you can ask for a million dollars but that's not necessarily what the business is going to get next slide please so we want to make sure that every single file that comes in is going to be processed not held because the person didn't sign the tax transcript form to allow us to get verification of their tax filing from IRS or that they didn't provide their personal financial statements so take a minute make sure all the filing requirements are met because the biggest reason for delays in process is we when we have to withdraw the file because they did not provide the information that we requested and when we withdraw the file we give them more time to get the information in but there again you know they're at the back of the bus until they get it then nobody's working on that file if they need more funds then they can support a written request for an increase but they've got to supply something that shows us the need for the increase so that has that in finance in financial statements if they decide they don't want all the roll then we can reduce it if for some reason we declined alone then we will give them a letter saying this is why we declined you and give them up to six months to ask for reconsideration so let's suppose that we said you can't afford long there's no repayment ability here but that person was a sole proprietor and didn't include the spouses income they can choose to do it that way but maybe they will consider adding the spouse and having that additional income they make the difference in the loan approval next slide please okay and again due to time we're going to not have an open forum for questions right now I'm going to turn it over to my colleague Marilyn Dogen and she's going to go in depth of how to go online and apply for the loan Thank You Marilyn yes thank you so much good morning so once you have gone to the site you're going to see a page similar to this and this is the disaster loan application portal here and I'm going to refer to this as d-lab and this presentation is going to is going to give you the information necessary to complete a sba form 5 and the sba form 5c and we will go over both applications so that you can see the different screens and how to accomplish submitting an idyll application so some of the following requirements is in the late electronic loan application an electronic loan application form 5c if you have a sole proprietorship business tax authorization 45 or 60 your most recent business tax return and then your personal financial statements schedule of liabilities also so again this is what it looks like when you click on disaster loan dot sba.gov for /l a and you click on this circle this is apply online or you can click here with this apply online now when you get to this page this is where you're going to begin the registration process so you click here where it says register the other thing about this page is that when you if you start in an application but you did not complete it you would come back to this same register page to put in your username or password but if you are inputting a new application you go to the register page and then you begin that registration process the next screen that you would see is pretty intuitive how to you know it's you know you know put in your information the thing to pay close attention to is everywhere there's an asterisk is a field that must be completed so just be sure to complete all of those and also have a good working phone number as well as your email address so this is page one and then this is page two on page two is where you would put in your user name and a unique password if for any reason your name has already been used let's say there was another John Smith then they would actually maybe put a number or something at the end and then you also need to validate that with the security information at the bottom to advance you would go next okay so the system will take you to the next screen which is to apply so you just click on the circle that says apply online and then you would click on the business and nonprofit icon and on this page the system wants to know exactly what type of business is it is it a corporation a partnership a private nonprofit limited partnership trust or limited liability entity if it is any of these business types you're going to complete a sba form 5 if this is sole proprietorship then you would be completing sba form 5c and the system will die req'd depending on what you've selected to that form and then the example that we are looking at it's going to be a limited liability economic injury so we want to know what state what county and the disaster declaration one thing to pay close attention to is if there were maybe other disasters in your area that you are clicking on the right disaster declaration so you would put in the state you put in the county again next always advances you and then it would take you to the page that says disaster loan assistance you would select the one that was for your area the next section to complete is the disaster loans some certifications so you can scroll down and read these but this one is a certificate for truthfulness just just saying that you need to to the best of your knowledge provide good information then the next section is executive orders and they're quite a few there's a freedom of information that can bet it in this document there's a Privacy Act debt collection act right to financial privacy coastal barrier resources and there's also some information about Texas home state law so all of that is embedded in this document but you would just click that you certify that you understand this information and then it would ad ance you on so from this page we're going to start the application and again we are going to be looking at form five so from this page it also shows you all the filing requirements you want to select start which will start the application okay so from this page some of the information is going to auto populate from the registration like the type of business that you're applying for idle and then you would complete all of the sections that are in red the business name you know if it's a trade name just all of this information that's pertinent to that business and this is page two of this is a three-page so on page two you want you want to really input all of the information about any partners that are a part of this business if it if it's if you also have an affiliate business besides the one that you're applying for you would also include that on this page and if there are any things that are that you need to explain more in-depth then you would do that on page three going back to page two there are a lot of disclosures there that you have to answer as well differ questions about if you ever had any federal debt previously those questions are on the last part of page two once you finish inputting the application the next part is that you must complete all of the filing requirements so the first one is your personal financial statement the next one is your schedule of liabilities the next one is your form 45 or 60 so that they can pull the tax transcripts and then any other schedules and then you would also be able to you also have to do the truth information certification again and then you would submit the application so let's look at some of these filing requirements this is your personal financial statement so in this document I'm pretty sure that you guys received a copy of the paper form of this document but you can use this form to complete your financial statement sometimes people may have a financial statement already prepared and you can upload that as well if you've indicated that you own real estate you will also have this page to complete which asks for the type of property it asks when the property was purchased it also asks for the value of the property on this page so if you on your application indicated that you had a partner or you know someone else that has an interest in your business they would also need to complete the personal assets and and that information as well your schedule of liabilities is the next section and again this form is embedded in the deal app so you can complete it here by just filling in the different sections that are applicable or again if you have this document and another type of format you can also upload that as well the 45o 16 is a document that can be uploaded so the first thing is that when you come to this page you're going to click on that you give SBA permission to submit this document and then the next page that populates allows you to download it so you would download the 45 or 60 you would sign it and then you would scan it back to your desktop from there you would come to the Browse find that document on your desktop double click it it will appear here and then you will upload it into the system now if for any reason maybe you may have a partner that is unavailable when you initially do the intake for your application or maybe they're out of town so you have to give them the 45 or 60 to sign you could exit out of the program and come back in later to upload that but another option is that you can say I will deliver this offline now once you click on I I will deliver this offline you no longer have an option to come back into the deal app to upload that document but you will if you select this as an option I will submit it offline you will get another page that will give you the address and the method that that can be sent in so you know you can come back and do it later or you can say I will submit it offline it's up to you and this just shows that and on this business file they had to request the taxes of the business application the personal and then though the partner and so each individual that is affiliated with this business would have to submit a 45 or 60 for their individual tax returns and this is what it looks like once it is uploaded you'll get a green message or a message highlighted in green this is your document has been successfully uploaded and again this is just showing the other individuals taxes also is necessary okay again you're going to get the certification certification as your truthful information that appears at the very beginning of the process and then it also appears at the end once you have input all of your information and on all of these screens you can go back previous or you can go next now now that we've looked at this application at the beginning all of these different areas all of the filing requirements they were in a dark blue box or darker blue block box that said start but once all of the refining requirements were input to the system now you can see it says update so at any time before you press submit you can go back in and you can click on any of these areas if you think you need to correct something and you can make those Corrections once you suppress admit you will you would not have the opportunity to go back into here and make any adjustments to any of these sections once the application has been submitted you will get a message and d-lab and the message says that your application has it's a confirmation that application has been received and this same message populates here when you click on this will go on to again if for any reason you did not submit the application and you did not select submit documents offline then if you wanted to come back into the system to complete your application you would again put in the information to access this page and then you would put in your username and your password and when you clicked here the next page that you would see would be it would say hello like this is Chadwick hello Chadwick and then it would say your long application what's the status of it this one is not submitted so you would come to the continue button you'd press that and then you would be able to go back in and complete the section that was necessary so this is a a bird's eye view of how to complete form five but I also want to go over form five see so in this instance this is a sole proprietorship business applying for economic injury loan and beat the questions that are asked on this it says if you notice here it says home personal but this is a business loan for sole proprietors and then again you still have to select what disaster and again if there's been more disasters in your area just make sure that you are selecting the correct one for your area if it's the idle make sure sit idle on this one also you will have the certifications that you need to validate the certificate to truthful information and also the executive orders that we talked about earlier now if you notice on this page the following requirements appear to be a lot less than the form five so for this one you get a completely application you also have to complete the 45 or 60 again you do the truthful information certification and then you would be submitting any other documents like your tax returns to complete this application so the page for the five see it is a little bit different the one thing that you can do on both of them is that on your registration if no information is different you can click this line here this is type e information from registration and it will auto populate this again if the address is the same you can Auto populate this as well now on on the business application your debt and assets were captured on a separate form on the 5c that information is captured within the program itself or within the application itself so you would just complete this again paying close attention to the questions with the red asterisk because those are mandatory again the questions about are you delinquent for your federal taxes are you current this is the same as on the business application but this is where it appears on the five-feet this also acts a question about whether or not you have any interest in a another business if you answer yes then you will also have to provide information about that affiliation and this is the same information again about if you had any additional questions or something that you needed to expound more on you would come here to the additional comment section and you would complete that this is the information about the affiliate business you want to complete that in its entirety and that is also feels the red fields you want to make sure that you complete all of them this is for if you have a sole proprietorship business but you also have 50% more ownership and other business whether it is whether or not you're applying for assistance for this business or not that doesn't matter you still have to you know say any other business interests that you have so now that the application is complete you notice that the color now has turned blue and if you need to go back and update it you could and now we want to go to the 45 or sixties to request for the tax transcripts and you must again give permission for us to pull that information and that's at the bottom of the page you click there you would download the 45 or 16 you would print it you would sign it and date it you would also put what your position is if you are the president or whatever your title is and then upload it I mean scan it on to your desktop you would go to Bridals you would find that on your desktop and then you would double-click for it to come into here and then you would do upload again if you wanted to submit that document offline for whatever reason the person was unavailable to sign it then you would click I agree to deliver a copy of the completed document to SBA and then you would get more instructions about where that needed to be delivered okay and then this just talks about what it looks like so once you click on browse and you pick up that document off of your desktop it looks are like this and then you press upload and you will get the message in green that your document has been successfully uploaded once the tax returns are complete you're going to sign that truthful information statement again again that is at the beginning and the end of the process and once you do that you can now do submit form five see and this shows that the application has been successfully submitted you notice here in the message center that it says one that message is just confirming that this application has been successfully submitted however as the process moves on you can get other messages here in the message center for other documents the loan officer may need so you would also get additional messages in the message center as a process goes forth and this again is a copy of if if I clicked here this is what information would populate if I went to the message center this is a message that again just the confirmation that the application was received and went too fast go back okay now this shows the applications that have been submitted from the home page and there is an option if you wanted to print this information you can you can print a copy of the application that you submitted but from here you can check the status of your application by clicking on the status icon and this just gives you the message of what the current status is it also gives you the geo multiplier which wouldn't be any information that would be pertinent to an idol loan though during the process if you are filling out the application you may receive a message this message says please save your data by clicking the Save button shown in the upper right when you get this message it behooves you to go ahead and save because otherwise that the information that you are inputting could all be lost so you know if you get this message sometimes you may be taking a little bit longer on a page I mean the system is just alerting you it's about the time out so do press save so that you can retain all of your information and that concludes the entry into the D lab for both form 5 and form 5c and are there any quick hey Marilyn there been a few questions coming into the chat okay one of them people want to know if they can share the presentation with their clients I assume that's okay all it can't be respond to that okay I think she oh go ahead she maybe uh I don't think that's gonna be a problem yeah I don't think so either the other question was do all owners need to I he said didn't need to apply but I assume he means need to guarantee the loan or just those that have a 20 percent or greater interest in the business yeah if they have a 20 percent greater interest they do have to submit their information as well to be considered okay so 20 percent or greater they do need to yes okay and on for a sole prompt do they need a sole proprietorship do they need to do both a form 5 and a form 5 C or just the form 5 C no just a 5c okay and the system will automatically direct them there so you know you don't have to like pick the form but I just wanted to kind of showcase that because when it comes up it says home but it's not it is a business form perfect and then there's some questions and we're getting a lot of these from the lenders about credit elsewhere on disaster loans we know they have to meet credit outs for a test but how how do we address credit elsewhere when it's truly the disaster those questions I would not I don't want to respond to those I would prefer if Kathy responded to that okay kind of the feedback I just we've been given is that apply for the loan and the disaster credit analysts will make that determination correct yeah tax returns through 2018 are they acceptable of 2019 hasn't been filed will how will he handled on it yes ma'am they want the last three years and that's that would be fine all right perfect is there a Q&A anywhere about the idol program I you know this is a a fluid situation and I'm sure that if that is needed you know I'm sure that we could accommodate it but I would need to defer back to Kathy and her t-shirt that we you know if we have that I don't know where it is I can't tell you at this exact moment yeah great if you get if if we can work through got any wine I can always get it out to everybody - sounds good and then we've had questions about a checklist of items that the borrowers might need is there any sort of checklist or cover sheet that we can provide for them or should we just work through the documents that you've given us to create well yeah you know the page that talks about the filing requirements that that is what they're gonna need and let me let me scoot back over to kind of provide that for you perfect thank you well you know here on this page this this provides it but I but there's a cleaner sheet let me let me get to that while you're clicking back somebody asks if the inquiry for disaster loan is a hard hit on the credit bureau or soft inquiry do you know I do not know that but I don't think it's a hard hit but that's what I think and I'm you know I'm not sure okay okay this page it gives the filing requirements so perfect thank you okay there was one about let's see where what the anticipated repayment terms are I know the term pickle up to 30 years correct that is correct and then that's all there yeah the repayment that that would be something that the loan officer would determine once they have all the information you know how much needs to be borrowed and you know the other factor so it's not the interest rate is is these you know it's fixed but you know the terms of the loan how long you need to repay um that would be a decision for the loan officer to arrive at okay and somebody asked they they about the tax returns again they said the page says the most recent returns but you said three years a tax returns so well if a person just started their business maybe they might just go back a year so you know you know depends on the situation okay and do they need to provide projections to address the potential loss of business or is it just tax returns based only I'm sorry could you repeat that one more time do they need to provide cash flow projection to project the loss of business or is it going to be based just on tax returns yeah they need they need a they would need that and a written there to how it impacted their business monthly sales things of that nature okay and then I got a like gave us a whole bunch of months I'm trying to read through them is there an interest only option on these loans we do the deferral for four months but then could they go to interest only if they needed to I am not aware of that so I don't know if they do interest only loans okay and then he asks about a direct bridge loan from a bank being paid out or an interest loan from a bank being paid out with us with the SBA loan proceeds um it's the working capital so I would think so yeah we've we've been given the word that that is an eligible use of proceeds I think trying to scan through the questions real quick to make sure I don't miss any there is a question about a new business applying if or do they need to have been in business for at least a year I would say you know they can apply you know there's no harm in the flying yeah is there any prepayment penalty on disaster loans or can they pay offer no ma'am yeah and then did they request a specific amount or do they work with the SBA credit analyst to determine the amount of the disaster alone repeat that one more time um is there do we set the amount or do they request a specific amount to borrow well it you know it's contingent upon how much you were impacted so you know your what how much business did you actually lose you know that is a determining factor so a person couldn't come and say I know you guys long 2 million give me a hundred thousand no you know you have to prove that out you have to provide your recent sales or you know some kind of documentation that shows where how much the loss actually was so we'll counteroffer if they ask for more than as is reasonable that's correct okay and then one other question I'd come in about the difference between an eligible nonprofit and an ineligible charity what's the determination there that makes a chair the charity ineligible is it how designated with the IRS that they're not designated as our traditional not-for-profit or I I believe that's what it is but those questions that I'm not able to address can you shoot an email because I want to make sure that we get you guys the answers that you're absolutely are asking and I don't want to give bad information about that so if you could just send an email about that and then we can get it back and maybe you could you know circulate it with distribute to the group would that work yeah absolutely I'll grab those we did have one more point of clarification about deferment if the if the lender if their current bank has offered them a deferment on their loans are they still eligible for a disaster alone and I see banks more often do like maybe a 60 or 90 day deferment copy had said that that money just wouldn't be included in the Eid L repayment calculation yeah I'm gonna let Cathy tackle that one okay perfect I'll put them together in a QA I know we're a couple minutes past 11:00 do you have a minute to answer a couple more questions or I know you guys have back-to-back calls that you had to jump on yeah we have another call that actually starts at an 11:00 okay so what I'll do for everybody who's on the line I'll go ahead and capture these questions and got them to Kathy and Marilyn so that we can get answers out and I'll share the answers with the district offices who that can then distribute them out to everybody they invited for the call and at that time we know things are a little crazy down at Oda right now so we appreciate you taking the time to do the call it's no problem we just want to make sure we're giving you everything that you need so yeah get those questions to us and we will we will get the answers all right perfect thank you so much have a great day thank you uh-huh [Music]