How to industry sign banking nebraska form free
okay I think we will go ahead and kick things off thank you for joining us today hopefully this will provide you some insight in the process for applying for SVA eligible programs what we would like to first thank in motion which is a accelerator program in Nebraska that generator is partnered with so a little bit quick background on generator we are nationally ranked startup accelerator and we are doing this program to help small businesses throughout the country including startups and non start it's a lake we are we're here to help you guys out so feel free to reach out to any of us for questions during this program we would like to again thank our sponsors in motion and also the Lincoln partnership for economic development they have been a huge help in all of this so with that I like to you know first make you aware that there is dial in information so feel free to dial in if you're having trouble with audio sometimes the webinars are a little wonky so make sure that you dial in if you cannot correctly hear what's happening and with that questions feel free to type them in the Q&A box myself Danny or one of the other co-hosts will help answer those questions either in the chat or towards that of the program if we cannot get to your question feel free to send Danny an email and he will try to get back to you as soon as possible also any unanswered questions from the Q&A box will be answered in a follow-up email after the webinar so again technology issues we are recording this so if you happen to you know not be able to hear fully don't worry we have you covered this will be made available on generators website generator comm and we under the emergency response program so though will be webinar links on that on the resources tab for you to look at after this presentation so I will go ahead and introduce our co-founder and partner our generator Troy Troy has been doing a lot of research and helping small businesses the past month go through this process so he's a great resource and we're glad to have him and with that I'm going to turn it over to Troy cool thanks guys I'm going to share my screen and then walk through the first presentation so hopefully you guys can see the Google slides emergency response program look good cool all right so I'm not gonna go in the present mode just because I'm worried that it will not work that way so I'm just gonna leave it in this view if that's okay all right so clicking through these slides the first thing to remember is that the federal government really has essentially two loan programs that are eligible to most small businesses when I say small business that also includes sole proprietors nonprofits freelancers artists creatives independent contractors basically any permutation that you can think of as a business entity or and even if you don't have an entity like I mentioned with an independent contractor or sole proprietor there's essentially two main buckets that exist and both of them have some affiliation with the SBA the Small Business Administration the first bucket that I'm going to talk about is the SBA disaster loan also referred to as idle or economic injury disaster loan the second bucket I'm going to talk about is the paycheck protection program also known as PPP so there's really two separate programs I'm going to talk about each of them and then I'll conclude the session here talking about kind of recommendations on next steps the first recommendation I'll make is that any small business owners should be applying at any and every small business owner should be applying for both of these programs for the time being and the reason for that is a we don't know how quickly the money will run out B we know that hundreds of thousands if not millions of startups are applying for these programs so we need to move quickly and you want to reserve your place in line and then third we'll address some questions about personal guarantee collateral loan forgiveness you know is this a grant is this alone the reality is by the time you get your place in line you'll be able to make those decisions in a more educated way and so you're better off having had the option to either accept funding via these programs versus waiting to apply and then either having the money run out or just being so far behind in the queue that your name never gets called or by the time it gets called it's too late so first I'm gonna walk through these slides here she also shared them in the chat this is specific to the SBA disaster loan again this is also referred to as idle or economic injury disaster loan so a little bit of background on this this was the first program that was available one of the first national addresses that President Trump had was talking about making funding available and making States eligible for the SBA disaster loan and so that's what this slide back is is gonna go over what this entails is that each state's governor had to petition the Small Business Administration to prove that there was a disaster in this case that was a rather simple process because you know nearly every business in every part of the country can show some economic loss because of the koban 19 pandemic what these loans entail is that for a for-profit business you can get up to two million dollars and this is a loan up to two million dollars out of 3.75 percent interest rate nonprofits can get the same but at a 2.75 percent interest rate and these loans can be paid back up to with an up to a 30-year payback period so pretty favorable terms but again that is a loan that is a loan that must be paid back the caveat is in the last paragraph here on this slide for small business owners in all US states Washington DC all territories anyone that applies for this economic injury disaster loan can simply check a box that says that they are interested and eligible for up to a $10,000 grant this is called an emergency grant that was part of the cares Act the cares Act is the two trillion dollar stimulus bill what that means is that anyone any business or nonprofit that applies for this Eid el loan can simply check a box and that makes you eligible for up to a ten thousand dollar grant now that is a true grant that does not need to pay back be paid back so for that reason I recommend absolutely everyone even if you're unsure about the bigger loan you should still apply for this program and check that box the that is what makes you eligible for up to the $10,000 grant so again I think there's perhaps no better program in terms of the ability to get these funds out the door and for again for that reason we highly highly encourage everyone to apply for that grant even if you get the grant you can later turn down the bigger loan so you can apply now let's say you are approved for the full $10,000 emergency grant you can receive the grant you do not need to pay the grant back and let's say by the time you get processed for a loan you can simply turn the loan down that is completely legal and completely okay so again you should absolutely be applying for this program on the next slide here we talked a little bit more about the the what they call a loan advance or emergency grants one thing to note is that some of you may have previously applied for this SBA disaster loan originally the SBA had their old or legacy online application that application went down unfortunately with the demand and the millions of small businesses applying they relaunched it on March 30th with the much better and much more streamlined and much more simple application so if you previously applied before March 30th you must apply again in order to be eligible for the up to $10,000 emergency grant so again even if you think you're safe because you already applied for this I want to be crystal clear that you need to apply it again if you first applied before March 30th so you need to make sure that you've applied via the new application process and that is the only way to be eligible for up to a $10,000 grant in this deck I've also in the presenter notes section I've shared some notes as well so if you're following along you can look in the in the presenter notes section or you can share this offline for your review on slide 5 I give the direct link this is the direct link to the SBA disaster loan also known as economic injury disaster loan online application to walk you through what this application looks like again I mentioned it's rather simple so I wouldn't get too caught up in in how this works but this is the home page it talks about the process as an overview first you have to say what type of entity you are are you a business with fewer than 500 employees are you a cooperative are you do you have more than 500 employees so basically just ask the series of questions you need to choose one secondly you need to check any of the following that are true so for example you need to confirm that you are not engaged in any illegal activity you have to prove that no principle of the applicant with more than 50% ownership is delinquent on child support obligations so there's a number of check boxes that you must check depending on if they're true or not when you get to the second stage this is where it asks for your business information so the business legal name as well as trade name for most businesses the trade name is the legal name and if it's not you would probably know that you have to enter your EIN employer identification number if you don't have that if you just operate as a sole proprietor or a single-member LLC you just need to put your social security number it asks what's the type of entity and then it gets into more specific questions so you need to answer your gross revenues for the past 12 months prior to the disaster and then cost of goods sold for the 12 months prior to the disaster as well those are really the only financial questions it asks you don't even need to quantify what your economic loss has been or at least not at this stage of the process so in terms of you know financial statements all you need to provide is the gross revenue for the 12 months prior to the disaster and the cost of goods sold for the 12 months prior to the disaster you have to put your business address it has to be a physical address your email address the date the business was established if you don't know that you can probably go to your or state a theory of stay or the a little bit different for each stay and you can search when you're not sure you have business activity that is a drop-down list there's only so many selections to choose from my advice is just pick the category that you think best describes your business and then there's also a category called none of these but again I would try to think creatively as best you can in terms of classifying what your business is the next stages you have to enter your the information of the business owners so for most businesses they're owned by individuals so if you are the business owner you would have to put your first name last name contact information and then your ownership percentage and you have to do this for every business owner that has 20 percent more or more ownership interest so if there's five owners each at 20 percent you have to list five individuals if there's just one owner at 100 percent you only have to list one individual and again it just asks very basic information like date of birth place of birth address etc now some of you might have businesses that also have another business that is a complete or part owner so in this in this section you would check the box under is your business owned by a business entity and so for some of you to answer might be yes so let's say for example another business entity owns 50% of your business in that case you would have to list the information about that business and and as well as the percentage that that business owns going to the next stage this is called the additional information section there's a series of questions that you have to answer about have you been convicted of a criminal offense are you currently suspended or disbarred from contracting with the federal government so again another series of yes and no questions that you must answer it asks if anyone helped you complete this application for most of you I encourage you to do it on your own but if you do need help like if an attorney or a CPA or an accountant is helping you fill this application you would need to list their information there this is the most important part this checkbox there's a checkbox next to which says I would like to be considered for in advance of up to $10,000 everyone please make sure to check that check box that's the most important check box that meant that you can imagine in this application so make sure to check that check box and then to prove that they're serious about wiring you that advance they require you to enter your bank name your bank account number and your bank routing number so this should be for the business bank account if you don't have a business bank account again if you're a sole proprietor or independent contractor and you use your personal account that's completely fine just enter that information here for your banking information finally you'll have to read and review the the representations and the certification basically it's making sure that everything is true and correct please make sure to read and review all those claims and then assuming you agree to them you check the box that say I hereby certify under penalty of perjury under the laws of the United States that the above is true and correct at that point it'll produce a summary so to list all the answers that you've answered thus far please review that for completeness if you need to correct anything you can click the edit button and then finally you'll click Submit if everything is correct you can just click Submit and then at the end you will actually receive a confirmation number in my experience you do not receive a confirmation email so don't be alarmed if you do not receive a confirmation email so you will receive a confirmation number and according to the law they must advance you up to $10,000 via the emergency grant within 10 days of application unfortunately and this has been a very frustrating point no one that has filled this out yet and many of whom have filled it out over three days ago and have received those that money yet so this is a frustrating point we're hopeful that the SBA and the federal government can get the kinks worked out in the meantime again this has been a very frustrating point and we're hopeful that the federal government can get this worked out and that's pretty much it so again this is the application for the SBA Small Business Administration disaster loan also known as idle economic injury disaster loan and that includes the emergency grant about $10,000 if you can take the grant and you can decline the loan or you can take the grant and accept the loan and the at that point a loan officer will be in touch with you in terms of determining how you can get a loan of up to two million dollars all right so jumping into the Q&A the first question is the expiration date on my application says March 30th 2020 should I should be okay without reapplying if you applied via the form and process that I just aligned that only went live on March 30th if that was the process that that you went through and it happened on or after March 30th then you are all set and you do not need to apply again if your process look different however meaning if you went through the original online application or there was a period of time where they even had you download PDF forms and then upload them if that is what you did you will need to apply again you need to apply again via this new process next question is there's been a lot of talk about the $10,000 advance or the emergency grant I've also seen articles that have changed this to be $1,000 per one employee do you have any details about this I've seen that that rumor as well I have not seen any formal guidance that says that however so at this point I do not think that is the rule or regulation and I do not know how they are going to determine the up to $10,000 part some people believe they will just give it everyone the $10,000 the full amount othe
people as you indicate believe it'll be based on some formula a number of employees regardless you should take the simple step of just filling out this application so that you and your business can be eligible that would be my advice all right so again that was for the SBA disaster loan the second thing I'm going to talk about and I'm shifting to another tab is the Paycheck protection program also known as PPP so this is a significantly bigger program with for most businesses this will be an even more lucrative aspect or program that you should be looking into but again I encourage folks to be researching and applying to both the Paycheck protection program is also referred to as PPP this is also a loan program from the SBA but the funds are delivered and administered through private banks so for this PPP program you should be contacting your bank the bank where you have your business deposit account and asking them first will you be participating in this and secondly if yes are there any additional restrictions so for example this program only went live last Friday and some of the big banks like I'll use Bank of America for example they are processing applications however they're only doing it for existing clients and not only that but only existing clients that have a business loan or business credit card already in place with Bank of America so in that sense they're not doing anything illegal but they're prioritizing not only their existing customers but existing customers that already have lending or credit relationships with them now there's other banks that I've contacted that are simply choosing not to participate in this program at all other banks which are only working with their clients and we're starting to see some banks that are being obese open to working with non clients so let's say for example my business has a bank account with a bank that's choosing not to participate in the PPP program in that case my advice is that you contact as many banks as possible in your community to see if they will take an on client and what we're finding anecdotally is that a lot of the local smaller community banks are doing a better job at getting these loans processed so my advice would be trying to contact one of those local community banks to see if they will process your application even if you're not a client currently at a high level what the PPP program provides is any small business and again that includes nonprofit it will also include sole proprietors and independent contractors you can apply for this program you have to calculate your payroll on an annual basis and then calculate average monthly payroll so first you need to look at your total payroll over the last 12 months use that then to calculate your average monthly payroll and that can include employer paid contributions to health insurance and and some other like 401k contributions that are employer paid as well so calculate your total payroll over the last 12 months use that to calculate average monthly payroll you'll put that into this box here and then you multiply that by 2.5 so let's say your average monthly payroll is 10,000 dollars including all the other fees and things that you can tack on you multiply that by 2.5 and then you in that case you arrive at $25,000 so in that case you are eligible for up to you're eligible for a full $25,000 via this paycheck protection program loan now that loan it is a true loan with a 1% interest rate and a two-year time period but and this is the best part the entirety of that loan can be forgiven 100% meaning it goes from a loan to essentially a grant as long as you can prove that in the eight weeks following your receipt of this loan you spend all of it on and here the categories payroll lease or mortgage interest now this is commercial mortgage interest and commercial leases and utilities there is another column but but for the most part that's not relevant so again if you spend the entirety of your loan within eight weeks after getting it on payroll lease commercial mortgage interest and utilities and second pieces at least 75% of the loan has to be spent on the payroll bucket so you couldn't get in my example twenty five thousand dollars and spend all of it on utilities you have to spend at least 75% of it on payroll then you get the entirety of the loan paid back or forgive and excuse me the entirety of the loan forgiven now some people might ask well what if I'm a restaurant for example and I've had to furlough or layoff all my employees because I'm closed or I have no business or my County or my state has shut down my business well in that case the purpose of this loan program is to actually rehire those individuals and pay them for at least those eight weeks that are covered by this loan forgiveness even if they have nothing to do or they legally can't work the purpose of this program by virtue of its name the Paycheck protection program is to keep paychecks flowing to these effective employees if you scroll down the rest of the application you also have to list any owner in your business that owns 20 percent or more of the business and if you have more you can attach additional sheets similar to the SBA disaster loan you have to answer a series of questions and an test stations basically proving that you need this this loan and then the final page again review and certify the information listed and they will again ask you to initial so you have to actually put your initials next to each of these certifications the biggest certification is that current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant so again you need to be able to certify and and that needs to be true in order for you to apply it for this PPP loan finally you will actually sign in print your name put your title and then date of the application now this is not an application that you then submit to the SBA but rather it's an application that you will have to work with your bank your private bank in order to get this PPP loan processed and again the best part is that you can get the entirety of the loan forgiven as long as you spend all of it in the next eight weeks after you get the loan on payroll rent mortgage interest or utilities as long as at least seventy-five percent of that is spent on payroll so let me dive into the Q&A here there's confusion a lot of eld I loan also requiring maintenance of work force per paycheck protection could you clarify the IDL as far as I know does not require it does not stipulate where you need to spend that money other than it needs to support the business so ii IDL does not specifically say you need to keep these people hired whereas paycheck protection program in order to get the loan forgiveness you you must prove at the end of the eight weeks you need to go back to your bank and they will ask you you need to show proof and evidence that you actually spent it on these qualifying categories and not only that you need to prove that at least 75% of that went specifically to payroll next question is if I have three LLC's do I need to fill out an application for each one the answer is yes you will need to fill out an application for each one and beyond that for the purposes of the PPP program you will also need to list you'll need to provide a list or an addendum what they call addendum a here listing all the other businesses that you or the other owners of your business own so so if you own three LLC's and you're the let's say you're the only owner of those three LLC's you will need to not only apply three different times one for each LLC but for each of those three applications you will also need to provide an addendum what they call addendum a listing all of those other LLC's the purpose for that is what the SBA calls affiliation rules in order to qualify under the 500 employee threshold they will actually add all the employees of your affiliated businesses to see if you still qualify so if each business has only 100 employees even if you add them all together in this example you'd still have 300 employees and you would still qualify because you're under 500 but if one of the businesses had you know 400 and the other two each at 100 well then based on the current affiliation rules you might not be able to qualify because collectively you have more than 500 employees next question if you aren't considered an employee is payroll your drawers as an LLC member there's still some confusion about this and we're still waiting I think I got some more granular details so for example sole proprietors and independent contractors can't apply for this program until April 10th so this coming Friday and I think a lot of that is due to the fact that we're gonna we're waiting on guidance from the federal government about what do they qualify as payroll the advice that I've been seeing banks interpreted as is they will look at either drawers so what our guarantee payments are drawers that the business owner is taking from the business or they may look at net income of the LLC in this example so if you have a single member LLC and you don't run payroll but rather you just take drawers they might either look at the total amount of drawers to calculate the the loan amount or they'll look at the annual net income of the business but we still need some more guidance on that wage maintenance requirements under PPP so really at the spirit of the law is you need to continue to pay all your existing employees as they would have been paid so if you're a service industry business they're looking to make sure that they're paid at least what they would as a base so their wage plus any tips in that case the good but you would also be counting not only the wages but also the tips when calculating the average monthly payroll so you have some protection in that regard and and then again they are looking for wage maintenance so you need to prove that at least 75% of the total PPP loan is spent on continuing to provide payroll to all those employees that had been under your payroll prior alright I think that covers all those questions that we got there we again will be sharing these videos to the generator emergency response program website we have a list of we have a resource page where we not will include links to like the google slide deck that i walked you through as well as recordings of these various webinars intro it looks like we actually had two questions come in right at the end there first one being um what about your single LLC owner of an LLC in still apply yes if you're a single owner of an LLC my advice is to apply now try to work with your bank today because I would encourage you to be viewed as an LLC you would check the box here where it says check one at the top of the PPP application I would check it as an LLC and then work with your bank on how they interpret the rules for determining payroll now some single member LLC's might run payroll and in that case it's easy but if you don't run payroll then I think the two paths that I've seen banks interpret are either looking at drawers and guaranteed payments from the business to the owner or look at annual net income the second question is if you have multiple entities are you able to file for PPP under one of the entities any IDL under the other entities even if the ownership is the same the answer that is yes although my answer would be every entity should be applying for both it's just so you have all your bases covered and then Stephen says so wait to apply as a sole proprietor if if you're a sole proprietor I would still encourage you to talk to your bank right away just to a see if they're gonna be processing PPP loans and then secondly a lot of banks even have a form that you can fill out just to kind of get your place in line but legally under the law under the cares Act which authorized the PPP program sole proprietors and independent contractors can't start the banks can start to process those loans until this Friday until April 10th so you will actually have to wait but my advice is to go to your bank as soon as possible to make sure that they're actually processing these loans and if not you should do your research to find other banks all right well thanks everyone I appreciate the questions on this webinar today dan you're Patrick you want to wrap it up oh sorry so guys thank you for coming today we really do appreciate it as Troy said we will make this available to you either on our website on Vimeo or YouTube also friendly reminder if you have not signed up for our one-on-one office hours these are free half-hour consultations with someone on the generator team to go through more specifically each of your needs with regards to these programs and with anything that you need help with during this crisis so I highly encourage you to sign up for those today Danny sent that over an email once you signed up so go ahead sign up there and please reach out again to Danny at generator comm if you have any further questions thank you guys you you
