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okay everybody now welcome and thank you so much for joining us this week for our webinar series for Minnesota small businesses and geared toward helping you all figure out how to navigate all the resources that have recently become available to you legal changes as it relates to the Care Act and essentially a step-by-step process for how to apply for the relief aid that's recently become available so the theme of today's presentation will be a step-by-step process on applying for SBA eligible programs and overview of PGP as well to give you a little bit of context on why we're doing this so a generator is a startup accelerator and you don't necessarily need to know what that means but essentially we act as a connector in the business community for high-growth startups we've figured throughout this crisis we might as well leverage our position to help as many people as possible as the economic situation becomes more dire as it relates to this crisis so we decided to offer up some free programming relying on a lot of great speakers who are we're extremely grateful to lend their time to us this week to offer all of you some guidance on how to navigate all these acronyms so questions during today's webinar we have a QA box live typing questions and feel free to send to host we will be doing our best to address these questions as they come through throughout the presentation so stay tuned there also feel free to send emails to Bennett generator comm that's me my name is Ben Stanley as context and I work for generator during the webinar with any other questions that you might have due to the number of people on today's webinar is those continue to roll in unfortunately we won't be able to resolve technical issues as they occur kind of an ongoing basis we'll try our best to do it but just to give you a heads up that there might be issues with audio things like we might not necessarily be able to control immediately so just bear with us as we as we navigate through this we will record the webinar and share it on our emergency response program website under our resources page and you can see the URL here so getting to today's speakers before I hand it off I'd like to introduce Bruce strong and Jason Miller grew strong is a state director for Minnesota small business development center network the SBDC helps entrepreneurs start and grow businesses that succeed by providing one-on-one consultation assistance in accessing capital and training programs for aspiring and existing business owners strong has extensive experience in public Community and Economic Development and in the private sector in mortgage lending endowed morgan mortgage lending and banking industries Jason Miller Miller is a senior consultant for SBC Milwaukee Jason's areas of expertise include operations retail financial projections and search engine optimization clients who work with him say that they enjoy that he hits many angles and gives lots to think about but creates a list of only three things to work on to stay focused on Jason likes to combine information and data with an owner's gut feelings a create attraction to move forward so that being said I'd like to hand it off to Bruce and Bruce feel free to go ahead and share your screen and unmute yourself to kick things off okay so hopefully you can see my screen doesn't look like it not quite yet have you hit the share button on the bottom I have yep it says it will stop other sharing and I said okay to that I hit mine there we go there we go okay okay as been said I'm the state director of the Minnesota SBDC we are a partnership of the Small Business Administration and here in Minnesota the state government the Minnesota Department of Employment and economic development deed is the primary host for our program here in Minnesota and I actually work in the deed office but our SBB ste covers the entire state we'll talk about that in just a minute my job this morning is to talk a little bit about the SBDCs in general and what's happening in Minnesota and then I'm going to turn it over to Jason who will talk more about the federal programs in play and the programs in Wisconsin so the SBDC started back in the 1970s a couple of smart college professors out on the west coast got together and said hey this SBA that was created back in 1950 that was meant to help small businesses so far all they're really doing is helping in terms of capital it would be a really good idea if they did something to help businesses beyond capital and specifically with the technical assistance they need in order to start and run a small business and wouldn't it be great if we could link in the academic community since we are college professors we see all of these great things coming online we've got a lot of young bright minds available we should really link these two things together and so they pitched the idea to the SBA back in the 70s and the SPE a started a pilot program in about the mid 70s it wasn't called the SBDC at that point but ultimately that's what it became all the various states came online slowly over a period of time starting in the mid 1970s so that by 1980 they passed a federal law which created the small business Act and under that specifically the SBDC centers and again the program is intended intended to strengthen existing and prospective small businesses by linking them with a variety of resources including financial including the SBA and including the academic communities that are out there most SPDC centers unlike ours are in fact hosted by centers of higher education and again I just put a note in there that the Minnesota Center was created in 1979 but there's a list we are now nationwide and in fact cover all US territories there are 62 SBDCs nationwide one in every state five in California four in Texas and I'm missing somewhere there must be another u.s. territory out there that I'm missing because I was adding these up this morning and that's only 61 but ultimately there are 62 centers around the country and in all US territories here in Minnesota we have nine regional centers again we are a statewide program here in Minnesota each individual state program runs differently they're all set up a little bit differently they're funded a little bit differently and the way that they work is a little different and jason'll to cover his the what's happening in Wisconsin a little bit later but here in Minnesota again we have nine regional centers each of those centers have four or five satellite offices or outreach centers and so we have a total of about thirty touch points throughout the state state we have more than a hundred staff who work in those centers and satellite centers all helping the small business community Minnesota has about 500,000 small businesses the vast majority of them on ninety nine and a half percent of those are all small businesses as defined by the SBA typically that's fewer than 500 employees but there are some other caveats that go along with various industry types that define what a small business is if you have any questions you can contact your SBDC or the SBA directly to find out the size standards for what defines a small business so there are only about 2,500 large businesses in Minnesota which is kind of mind-blowing when you think about it we have 19 fortune 50 world headquarters here in Minnesota including 3m Medtronic General Mills you name it again they're the size of those companies it's kind of mind-blowing to me that there are only about 2,500 of them that are considered large most of our small businesses have fewer than 20 employees and in fact most have fewer than 5 employees however they comprise about 50% of the total employment in Minnesota and about 66 percent of all new jobs are created in small businesses throughout Minnesota and again those statistics are pretty universal throughout the country Minnesota is not especially unique in those areas that's that's the true nature of small business throughout the country so when they say that small business is in fact the economic backbone of the economy it is exactly right and you can imagine that that backbone is being severely tested out through the COBIT response the shutdown the for shutdowns of many small businesses throughout the country the stay at home provisions those are all going to take unfortunately an extremely severe toll on the small business community by the time we get through with all of this it's already impacting small businesses as you well know and my fear is that we are going to lose a major segment of current small businesses that are out there but again we're here to help rebuild them once this is all over with and the restrictions or lists lifted most phone businesses do most of the exporting again well actually not most of the exporting but 80 most of the small businesses in Minnesota do in fact export but that's where again the large businesses the three ends of the Medtronic's they kind of take over and they do the bulk of the accidents our mission again this is literally our mission statement here in Minnesota is to help entrepreneurs start and grow small businesses that succeed it doesn't help to start a small business if it's not going to succeed and again we try and encompass the full perspective of what that means both in terms of capital infusion but also the technical advice and technical know-how that it takes to own and operate a small business these days our vision is and has been pretty well recognized that we are the best technical assistance program in Minnesota and certainly we can drip you to this small business economy the whole overall mission of the SBDC of course is not just to go out and do great things for small businesses but it ties back to the impacts the economic impacts that those small businesses create for the state and national economy again it's all about job creation increased tax revenue and and and all of those things that help build and fuel our economy both here in the state and across the country and these are the values that we incorporate here in Minnesota we do three things essentially we do one-on-one consulting at no cost to anyone who is interested in starting or growing a small business in Minnesota that no costs however is important to realize that there's a sync distinction between that and free our services are not free our consultants don't work for free they're not volunteers they are in fact paid professional business consultants and the way that they get paid is that funding mechanism that's created through SBA and the state funding and our local partners who contribute we have to match all of the funds that we get from SBA on a one-for-one basis using funds of our own that don't come from other federal sources and that total budget is what we use to pay our consulting staff so again it's no cost to the client but ours our consultants are in fact paid professional consultants here in Minnesota and again this does vary a little bit from one state to another we tend to be experts here in Minnesota and access access to capital we do we're kind of among the top tier of agencies throughout the country SBDCs throughout the country in terms of our loan packaging and funding we don't lend funding directly but we know who does lend the money and we help our clients prepare and apply for and secure the funding that is available through banks both including the ones that are guaranteed by SBA loans and SBA banking but at other private conventional uninsured loans as well as well as other grant programs that are available out there we do again as you see here kind of the percentages we do a lot of business planning and startup we do a lot of financial analysis and cash flow management we're very good at helping entrepreneurs understand the financial health of their own company so that they can make the decisions they need to grow and increase their sales and profitability the next thing that we do is training and again on everything that you can imagine with regard to owning or operating a small business financial stock bookkeeping QuickBooks all of that kind of stuff but we also do a lot of other training as well we do Excel training we do a training on web design and social SEO search engine optimization all the other things marketing all the other again that a business needs to know and again that even in in spills over to employment law and sales tax and all the other things that go along with that and then finally one of the things that we do is disaster a system whether it's physical disasters here in the Upper Midwest we have we're about to enter tornado season and again tornado and flooding is a big deal here in the in the Upper Midwest and so we do a lot of relief around we're always a first responder when it helps comes to helping small businesses get through those disasters and certainly now with the koban issue we are again a first responder in terms of helping businesses understand the programs that jason is going to run through in just a moment and helping those small businesses hopefully stay intact and ready to recover when this is all over with as I mentioned the SBDC here in Minnesota is the primary host for program is the minnesota department of employment economic development we are one of only seven SBDC centers throughout the country that are still hosted by a state agency all the others are hosted by higher education institutions and quite frankly it doesn't really make a whole lot of difference who the primary host is but that's just the way that we're set up here in minnesota again right now obviously we're under a stay at home executive order as is ninety percent of the country we have processed more than three hundred and twenty thousand applications for unemployment deed works with my program but they also are the administrator of the unemployment insurance program and the workforce programs that are available specifically to help with the co-head response for small businesses deed has created two programs in addition to the federal programs that are out there this first one is the small business emergency loan program as you can see their loans are available from $2,500 to $35,000 for any business that was forced to close as a result of the two executive orders are gone our past when they shut down beginning with the bars of restaurants but other non-critical businesses throughout Minnesota this program is interest-free it's a five-year term and is partially forgivable up to 50% forgivable however it's meant to be a bridge loan it's an emergency law and so we encourage businesses to apply for the loan programs available through the SBA specifically the economic injury disaster law or the Ida long as it's referred to as well as the new paycheck protection program I'm hoping that Jason's going to cover and again these these programs are available or these loans are available all in through specific lenders here in Minnesota the second program that we have is a loan guarantee program that we just put up and again this is available only to businesses the smaller of small businesses businesses with fewer than 250 employees who were impacted by the Cova disaster it provides an 80 percent guarantee to private lenders so again these are typically going to be SBA insured loans these are going to be loans that private lenders make but they're looking for in guarantees similar to the one that they get from SBA this 80% guarantee is actually a little more generous guarantee than SBA typically provides and again these are meant to be small loans up to $200,000 guarantee so a total loan amount of 250,000 rates and terms will be established by the lenders and again lenders are being just recruited for this program the relatively new program that's been up and running in Minnesota for about six days now and again there's a different set of lenders and folks can find information about that on the deed website that is all I have to cover I'm going to turn it over to Jason here's my contact information if any of you here in Minnesota have questions please feel free to contact me thank you Bruce thank you appreciate the overview on the SBDC program there's a lot of similarities a few differences I'm going to start sharing my screen now and I've got a few things to go over t
at some of them just a little bit of Wisconsin specifics my name is Jason Miller I'm a SPDC consultant out of the Milwaukee office here in Wisconsin I just wanted to share a little bit about what the Milwaukee or I'm sorry the Wisconsin program looks like I'm gonna try to move that so you can see the map thirteen centers across the state of Wisconsin located at various UW institutions the main institution that we work out of is the UW System in Madison so that's where most of the organization comes from and sets up different centers in our state we do provide the no-cost business consulting which is really nice my specific Center out in Milwaukee serves the Washington Ozaukee in milwaukee County's there's a few consultants that work in our state that are paired with economic development that work in certain counties to provide specific assistance there as well but yes we are celebrating 40 years so it's good to be part of the program SBDC network is a resource provider we are here to help the business owners get through this there is a lot of information that is changing almost daily so we're here to help stay ahead of this and then try to distill some of this information for you there are lots of options for funding available a couple of the federal programs the economic injury disaster loan is one of them I'm going to be going through what that application looks at a couple of suggestions on how to fill that out as well there's also the Paycheck protection program the PPP I'm going to go through a little bit of that there's some interesting challenges with that one I'm going to try to help you through as well but there's also some local programs there's some of the chambers of commerce that are offering some micro loans Kiva in our state that does the micro loan for they extended their program from 10,000 to 15,000 for small businesses and then our star actually our state office put together a pretty good page on Wisconsin SBDC org if you look at the drill own page on Wisconsin SBC org there's some fa cues that they updates pretty much daily and to try to stay ahead of some of the programs and some of the changing information so to go through some of this if you want to apply for the injury economic injury disaster loan you can go straight to the SBA's website on this portal and it does take you directly to that program so the disaster loan was the first program that was announced it's administered directly by the SBA so you apply on their portal one of the loan officers or program administrators out of the processing center will contact the applicant directly to go through their application so what this does this is a fund that is put together to provide some capital to small businesses to get through these next couple of months so again applications run in the SBA's website how do you qualify you do have to be a business that is defined by the SBA is definition of a small business most of those are if you're under 500 employees now there is a tool to figure out if your actual industry fits small business but the general rule of thumb is under 500 employees you can use these disaster loan funds to cover accounts payable so everything from payroll to rent utilities other loans that you have they can be used to cover logs which is really a nice the interest rates for small business are at 3.75 percent for small business or they're also extending this to nonprofits at a rate of two point five two point seven five percent so even nonprofits can jump into this and get some assistance as well what banks are authorized to to do this this is actually directly through the SBA the PPP is the one that's the program that's going to wreck through the banks and lending I did see in the Q & A there was a question about you know one of the banks is not accepting loans right now I'll go over that in just a little bit because there are some other options and the limit that the business can receive I believe these are up to ten million so that should help out the small businesses with the larger employee counts so the price to neuron time it's it's been a very overwhelming response at the SBA when you apply there is probably a three week as what I was Ben I've been told processing time for some of these applications there is a additional thing that was rolled out after the Eid L was launched for a ten thousand dollar advance I'll go through that in a little bit this is the disaster loan is determined by a few things one you have to be in business before a certain date too you have to be having revenues in your business you can't be like a brand-new startup with no with no revenues you do have to demonstrate what your twelve months sales history look like as well as what your 12-month average expenses look like now on the application it asks you for what your expenses are I highly suggest you go through your accounting materials and pull out what your rents have been what your payroll has been any other accounts payable so you can have that breakdown because when you get asked about what this application means for your business the more of your numbers that you have available the easier it's going to be to process this so a lot of this is also going to be determined you know for payroll so at the heart of these programs it's meant to keep the business afloat make sure the business doesn't close so again emphasize what you are averaging per month on payroll some of the other things that have been hearing along this I might go a little bit off slide you know processing time has been a little bit longer just be patient as things change another thing that's kind of kind of nice in the state of Wisconsin wEDC our economic development statewide organization has also set up a 2020 program for small businesses if you have an existing loan with CDFI development financial institution there is this grant program available up to twenty thousand dollars for businesses that have no more than twenty employees so this was really designed to help some mystery businesses get an additional source of economic growth is it's on WTC 2 org under their 2020 program right on their website I did address or mention the Kiva loan piece that was extended up to $15,000 which is kind of nice in Wisconsin the Wisconsin women's business initiative corporation or known as Witek in our state does manage some of the Kiva process here Kiva org has all the information on there if the $15,000 could help your business so again my office is out of Milwaukee we partnered with University of Wisconsin Milwaukee we are here to help again the was the state office has put together the disaster loan resources it updated almost daily as some of these programs change if you just go to Wisconsin spdc org there's a thing right at the top to click to get to the most current information on that so that I want to show you really quick what the application portal looks like for the disaster loan we got some screenshots of this which should be able to walk you through when this first rolled out the portal was really clogged the website I think went down a couple of times so they had rebuilt it this new streamlined process is a little bit easier to navigate it's really designed try to get small businesses and some of the nonprofits in there we have to do first is when you go to the application portal you have to figure out what your company profile looks like most of them is going to be the business with not more than 500 employees or if you're an individual or an independent contractor that works there are some nonprofit sections as well you also have to check that you are not engaged in any illegal activity in some of these other disclosure pieces you're not delinquent on child support one thing to know this program was not designed for Ag and farm businesses however I do believe there is a USDA program that support ours so you can look at the USDA website to figure out what assistance is applicable to those businesses this one is also not for lobbying organizations and can't be a member of Congress or part of a state or local government once you get into this this is the main profile of the business all the information for your business the names trade name fee I've won a tax ID number for your organization the drop-down asks you if you're an LLC corporation what type of organization you are under that and then if your nonprofit organization you're an a now here's a couple of tips they'll give you so the gross revenues for the business prior to January 31st what you want to do is total up your sales and then it's listed cost of goods for the 12 months this is where I put your total expenses for the business for the nonprofits out there on you know here's where you can actually put in your operating costs I've had a couple of questions with some nonprofits in my area this seems to fit them fairly well and then down below you do have to put the the actual address for the business now if one business has multiple locations you just put the mean address of the main location or the corporate office if that's applicable have your articles of incorporation ready so you can communicate when that business was actually established and then the number of employees that's going to be another big one the third page of the application is more the business owner the background of the business owner there's a thing to check if your if the business is owned by another business entities so there's a couple of extra questions that you might get asked on that one so the owner of the business all of their contact info goes down here the personal address of the individual flying if there are multiple owners you can add an additional owner there now the last page of this application I want to show you there's a couple of disclosures making sure of your background if there is any background hopefully you're not under indictment right now and then for some organizations they might have their accountant or another organization fill out this application for them just to disclose that if there's a fee and you know please disclose that that you paid them now here's the additional piece that was added under the program the advance of up to ten thousand dollars make sure you check this box for this application what this is designed to do is get some money to a business quicker to start the funding process so this would be in advance of the total a IDL loan that you would be applying for if you apply to the program very early in this checkbox wasn't there on the original application form you do have to go back and apply again and make sure this checkbox is checked there if you are looking for that it will ask you for the bank name the account and routing number so they can make that advance quicker so that is the fourth page of this disaster loan application it's much more streamlined I've been on the website several times it is not crashed so I feel like this portal is a little bit easier to manage so that's kind of nice now I will speak um a little bit I don't have a lot of time and trying to keep things rolling along but I want to speak a little bit about the paycheck protection program because that was the next step that was passed under the cares Act so this is a forgivable loan if you use the proceeds under the PPP for at least 75% of these funds going to payroll including to pay yourself now these applications have to go through a bank the banks that can process SBA loans are the ones going to be handling this so there was a question in the Q&A box earlier that Wells Fargo announced they weren't accepting applications I was looking around and I found several credit unions have been also part of this program so you can look to see if the credit unions in your area or community banks in your area are also processing these so that is another at least channel that you can you can look to see if this is available on the thing about this program's the money is first-come first-serve so when you get your applications in the first comfort or serve are going to be the ones that have the first chance at it when you do the application you can get two and a half times the average monthly payroll costs so again this is designed to keep the payroll portion of the business going make sure employees have something coming into them interest rate on this one is 1% and the term is 2 years which is really nice no payments necessary for the first six months very helpful there even if you're self-employed you're eligible you don't need to payroll employees I did get confirmation on that now here's an interesting point about this though if you have 1099 workers the 1099 workers don't court count towards the payroll so that it was one piece about the PPP that is just slightly different so with the PPP again it's designed for payroll so if you can put 75% towards the payroll it is forgivable it's very nice but try to get the applications in early if your bank isn't currently accepting those find another institution that is and see if they are also accepting them so it's kind of a lot to take in there's there's a lot of programs a lot of changes but we are definitely here to help I know the SBDC is in Minnesota are also here to help so I think I might stop my share and turn this back over so maybe we can address some of the QA unless Bruce was there anything that you wanted to add Bruce I think you see your muted right now I was still muted yeah I'm sorry I thought you did a good job Jason so thank you Thanks well great well let's use this as an opportunity to turn to the Q&A I know a bunch of questions have been popping up here the first is if Bruce and Jason first of all would you be able to speak a little bit to differentiation between programs for nonprofits and for-profit organizations slash is there a distinction offer for these programs well the idea of the nonprofit's can also apply for that at you know personally I'm not the nonprofit expert so I don't know all of the funding pieces for nonprofits but I definitely work with a couple on the Eid lp's the programs that we mentioned today are available I don't know specifically but even the here in Minnesota our programs are mostly available good another question is around which of these loans are forgivable and essentially if you could walk through what that process looks like well under the PPP when you use 75% of the money for payroll that is forgivable that's really nice the $10,000 portion on Eid L it was forgivable so that's also helpful let's try anything Bruce any other additions on that one no again PPP in particular is great because is that potential that entire loan could potentially be forgivable so that's a great tool and again we have the state specific programs here in Minnesota there is some forgive ability portion of it but each program has its own little nuance but many of the programs are offering forgivable assistance yeah Jason I believe this was when you were going through the application and we had a couple of questions here on what should nonprofits put in for the owner field oh great question you know that comes up often so on the owner field since the nonprofit really have an owner there's sometimes in agent in the nonprofit that has ability to you know sign for financial documents it could be you know it could be the executive director it could be another administrator it could be somebody from the board but usually in a non-profit there's somebody that is designated for those financial decisions or financial authorization so that person can put that name under that line item good question in a couple more questions here one on the deed loans so the de edy loans are those only for for-profit companies are those for nonprofits as well just a clarifying question on the response and then also oh yeah yeah go ahead on that Bruce they are available to nonprofits as well yes great and then also to clarify on IDL so if I understand this correctly is it the the 10k grant or the 10k advance that is essentially forgivable and then the other chunk of that what your approved for that application would be according to those terms kind of listed on the site or is that also forgivable under the ID alone yes the advances are forgivable it becomes a grant but the remainder of the idle loan is in fact a loan
that must be repaid the Paycheck protection program again is typically a it starts out as a loan but assuming that you use it for the allowable uses it becomes forgivable as well until ultimately becomes a grant thank you pretty sick cut out there for a minute and and we do encourage folks to apply for both the idle and the paycheck protection law there's some confusion as to how the two of these things work you have to understand it is extremely unusual that the federal government was able to first of all pass this law as quickly as they did but more importantly to write the guidelines the federal regulations that are required to actually implement the law those are designed to be between the passage of the law and the actual money hitting the streets that's it it defines the mechanics of how the program works unheard of that those those federal regulations were written and asked as quickly as they were that's why there's so much confusion among the lending community as to what what how does this work there is a lot of misinformation out there or about the who how the programs work in general I always refer folks directly back to the SBA website specifically and to the deed website specifically to get their questions answered to make sure that that we're getting the most correct answer but we also do encourage folks to apply for both of those programs as well as the state programs that are available ultimately somehow we'll sort out what works well how which one comes first which one comes later I saw that there was a question that the state of Minnesota programs could be used in tandem with the idol and paycheck protection programs that's correct but the state programs are meant to be original and if you're successful in obtaining an ID alone typically we're going to want to repay that bridge loan as opposed to making it forgivable so again all of these things are very much in the state of flux things are changing daily if not hourly and so just stay in touch with the primary sources and with your lenders to help work through some of these guidelines as we go so there's a question here I'll start off with just a few thoughts on but then I'd like to open it up to you guys uh Bruce and Jason just to get your thoughts so this is from an attendee who's saying a business would like to apply for a small amount of PPP but for ethical reasons do not want to apply for the full amount that they're eligible for how they go about requesting it amount less than what the calculation provides for I mean my recommendation respond directly would just be to take the full amount and you can always repay immediately what you don't need or don't plan on using but it would always be nice to have the put of the up front in these turbulent trying times just to have available however if the I'm not sure what the mechanism would be for actually applying for less and I'm not sure if Bruce or Jason you have any thoughts on that I'm sure you could work through with your loan officer if you go first of all I'd recommend you apply for as much as you can apply for then later decide whether or not you're ultimately going to take the full amount that you were approved for frankly I don't know if if in fact you intend to use the loan as it was originally set up so that it's going to become fully forgivable I don't know why you wouldn't take the full amount that you have available to it but if you're concerned about that or have some question yes you can drop down the amount that you ultimately clothes and take and you'll work through that with your actual with your SBA loan officer as you get to the point of ultimately closing the loan yeah you and if you're not going to take the full amount I'm wondering if there might be a different lending option or a different funding options for some of that you know if certainly you're gonna use it for or something like payroll you know that's forgivable but I'm pretty sure there's a spot on occasion for the amount requested you could just work with your loan office around that interesting question another question on here was if anyone had actually received the advance yet on the sba application i haven't heard yet of anyone who had received the cash i'm not sure what the holdup is or you know what's going on there and I'm also not sure if anyone else has any insight to this I know it's relatively chaotic right now Bruce Jason and the insight there well I've had a lot of conversations with clients about the application process but with the volume that I've had I haven't had a chance to circle back with everybody yet I know the initial applications were overwhelming for the disaster loan piece and I haven't heard updates of who got approved yet but I also haven't heard back from many clients yet so I haven't heard yet yeah chaotic is an understatement we started getting some early statistics early as in like two days into the Idol program as to whether or the number or percentage of loans and who versus those that had been declined but SBA quickly retooled their application process as Jason mentioned and again it's now much easier to apply for the loan they're asking for less information my sense is more people are getting approved but frankly I haven't heard of anyone who's closed any one of these loans yet at this point we're anxiously awaiting the first people who are actually getting cash in their hands and I'm not aware that anyone has yet at this point you there's another question here on a list of lenders who are participating in PPP in Minnesota and whether we might have one to share and unfortunately we have generators that we do not yet not that we've been able to find or compile as you can understand things have been rolling out and changing daily especially with whether or not people are accepting anymore I know there's been huge influxes of applications that something's been getting and they've been closing them down as a result so this has been rolling out and changing daily and it's been hard to get a firm grasp on who's in and who's out at this point we're working on putting that together just to see specifically if there are small community banks that are making themselves available that we could share with you also stay tuned on that it's our strong recommendation in the interim that number one you reach out to your existing banker you have a relationship with to begin compiling all the documents that you'll need to prove payroll work with them on what their recommendations are for the process if it turns out they're no longer accepting those applications still compile that information but I would gather a list of every single community bank that operates locally and reach out to them one by one and until you get a fuller picture of who is accepting outside clients right now for these applications some mate reject right away some might let you know that they're planning on opening this up today tomorrow sometime this week it's our strong recommendation to start doing that legwork and don't wait absolutely here's another one we from an attendee we have 1099 employees is it a smart move to advise them to apply for the PPP individually they are excluded from the payroll account any things to consider there I believe since they're independent contractors they can apply for PPP themselves I think that's how that would work for them yes they can and we're hearing that sometimes that's an advantage to the to the applicant but sometimes it makes more sense for them to apply for unemployment particularly with the new six hundred dollar advance or six hundred dollar payments that they're making under the unemployment program sometimes it works out better to apply for unemployment as opposed to applying for the Paycheck protection program each individual case is going to be different and I encourage you to work through that with your financial people your account or your banker or an SBDC consultant or anyone that you can to help try to walk through that process call your UI folks call your unemployment folks and they can help as well and the follow-up question there from that same attendee is you know what if they're still employed / if they haven't if they haven't been laid off and therefore might not qualify well typically they're not going to qualify if they haven't been laid off and they still got income coming in correct um so question here on if you can apply for PPP if you are sole proprietor I know that you can under the Eid L sole proprietors I'm not sure if you can for PPP Jason and Bruce any thoughts on that yeah when they first began the PPP loan program the opening date for most businesses was last Monday or Friday whatever day it is I don't know it's all a blur at this point I guess the third so that must have been Friday the sole proprietors are supposedly not allowed to apply until next Friday the 10th and again that may change I've heard some conflicting information already this morning but as we originally understood it sole proprietors could not apply until April 10th and yes there is a portion we in PPP that is going to help the sole proprietors but yeah to produce this point not till the tenth this is another great question here do these loans need a personal guarantee no SBA waive personal guarantees on all these programs unheard of very unusual actually I think under the idol program when it first started at any rate I know we asked this question and they did say there was a personal guarantee I know there is not one for the Paycheck protection program idle may still have that personal guarantee requirement but they may have changed that as well with a new application you okay any other questions here from the group I am not seeing any new ones come in yet but we still have about 10 minutes here if you want to jump on we were too quick and efficient Jason I try to be no there's a lot going on time right we got bigger fish to fry oh so we had to follow up on a question getting to there's one on local programs for from Minneapolis I'll get to that in one moment in terms of a follow-up for whether or not they would individually acquire a qualified or sorry if you can apply for PPP as a sole proprietor no this is our personal guarantees my apologies here so their qualifier their clarifying question is is there there may be or there might be a personal guarantee on PPP if I understood you correctly oh sorry go ahead no I don't think so on PPP there is no personal guarantee and the only question would be on a IDL correct is that we're here yes so it could be that there is for the Eid L I don't believe there is for the the cash advance like 10k since all you know well again that's part of the Idol application so yeah technically yes there is a personal guarantee but that money that if in fact you qualify for that and get those funds and remember it's up to 10,000 not necessarily 10,000 when they first came out they just said it was 10,000 but it's up to 10,000 that money is going to come in the form of a grant so that's not repayable so certainly no guarantee would be required on that portion but remember that's part of the bigger application for the idol loan and there may still be a personal guarantee requirement for the overall law thank you so then the last question here on local programs for you know cities like Minneapolis within the state and municipal programs that might be rolling out this is a great question so on our end where we're right now compiling a resources list that is hopefully going to be as comprehensive as we can get it regarding a state federal municipal program also including some philanthropic options that might be available in those various markets throughout the state so we'll be sharing that with attendees as we can gather it so stay tuned there with that context Bruce is there anything that comes to mind for you that might be available I think specifically in this questions context for Minneapolis or things that they should check with their municipal governments or economic development agencies on I don't have any information about the Minneapolis program but I know there's a lot of communities that are trying to do this many communities have been working with the Department of Employment and economic development on other economic development programs where the state has granted them funds over the time period those funds were then turned around and made in the form of loans to local businesses and when those loan payments came back in the city was not required to return returned the money to deed in fact they kept the money in a revolving loan fund account that the city could then use or other economic development activities because of this disaster we're trying to loosen up the requirements for many of those revolving the fund accounts so that cities can in fact make use of those funds and put those monies out for small businesses that every single one that you do is going to add different requirements and so there's no uniform answer for whether or not a city first of all even has them and secondly if they do under what terms can you access them and what are the repayment and forgive ability requirements associated with that so you're just going to have to check with each individual community thank you and we have another question that came in about this is read it out so Wells Fargo has already announced that they have hit the small business loan limit is it too late so we addressed this a few minutes earlier but just to go in directly again on this because I feel like it should be emphasized so I there are several large lending institutions that have announced that they kind of hit their capacity on these applications it is our strong recommendation and that you begin reaching out to local financial institutions and community banks to see if they are accepting outside clients if your banker that you have developed a relationship with is no longer accepting these applications we anticipate that more of these banks will begin accepting outside applications over the the next few days but you know obviously this is you know these are turbulent times and you know there's no guarantees there are some recommendations we've been getting from entrepreneurs within our network suggesting Len do and also choice Bay I'm not sure how they're doing this on the back end however we have heard that specifically around Len do they have been accepting applications and then somehow brokering them out to a variety of banks across the country until they can try to get a hit on somebody who will process it you know I I can't speak Minnesota I thought I saw a list of SBA 70 lenders for the state of Wisconsin but it's tricky and and yeah I tried to give a few ideas I think there's some credit unions that are also able to process some of the SBA loans so you might see if there's a credit union in your area some of the community banks are also so many lenders if there's a community bank in your area that you could give a shot that might work too but I think this might be it's tricky but it might be one of those things we just have to reach out and see who is accepting and who's got capacity one caveat that I'll add there is beware of scams there's a we're already hearing horror stories about folks that are trying to take advantage of small businesses and and individuals in particular so just make sure you're dealing with a reputable lender and that you know that this thing is is actual legit and now that scam yes thank you couldn't agree more there um so if there are no more questions here I'd like to wrap things up just by first of all thanking everyone for their time and coming on today we hope that this was helpful I'll be following up to all intent and ease with a link to sign up for office hours as well folks from generators staff will be making themselves available throughout the rest of the afternoon and at various times throughout the week for one-on-one calls where you can walk us through your situation and then we can do our best to help you navigate this process and guide you to the correct local resources provide additional information and help additionally as you know this is the first of five days of these free webinars we'll have guest speakers talking about a variety of topics so I'm going to quick
y run through the schedule for the rest of the week so Tuesday tomorrow we will have a representative from Minnesota online counseling walking through business owners on mental health and wellness resources available to them and their employees through this time Wednesday we'll have a representative from advisin legal walking through the employment law ramifications as they relate to the passage of the Care Act and things that you need to consider on Thursday we'll have a few state representatives from the de Edie to talk about state and local resources both for a CO vid and also just support resources in general that they offer continuously and then Friday we will have an outside speaker presenting on how to use this time to best sharpen your business well you do have some down time and take advantage of it as best you can while you're also trying to take advantage of these assistance programs and it looks like someone did just share banks in Minnesota a list of those a lender list for these these programs so I'm going to share that with the group as well and follow up with another list of resources that you should look at in your communities so any last thoughts Bruce and Jason before we sign off um it's there's a lot going on there's a lot of information but just you know take it is you can go and be prepared to adapt there's a lot of change at a lot of adapting yes and I'd like to thank you Ben and generator for putting on this webinar today thanks for the opportunity to talk about the SBDC and again we encourage our to anyone to contact the SBDC it isn't going to cost you anything and we can maybe answer some additional questions and help you wade through these applications so feel free to reach out thank you thank you to both and for everyone who's still on we will be sharing this has been reported this session so we will be sharing this with the group it'll actually be listed on a resources page for this program that I will also share so if you need to review it it will be available the next 24 to 48 hours thank you again Bruce and Jason they keeps everyone who came on let us know how we can be more helpful and we'll see you all either in office hours or at the next webinar tomorrow you're welcome great thank you have a good one
