Disaster Relief Loans KimJacobs,PresidentApril15,2020

Financial Resources for Small Businesses

• SBAEIDLLoanandEIDLAdvance• PayrollProtectionProgram• SBAExpressLoan• DebtReductionProgram• CommunityCapitalNewYorkEmergencyExpressLoan

SBA Economic Injury Disaster Loans (EIDL)

Loansupto$2millionfor30yeartermsavailabletosmallbusinessesadverselyaffectedbytheCOVIDvirus.

Ratesaresetat3.75%forbusinesses,2.75%fornotforprofits.

Theloansconsistofborrowedfundsanduptoa$10,000Advance($1000peremployee)thatwillnotneedtoberepaid.YoudonotneedtotakealoantogettheAdvance.

SBA Disaster Relief Loans (EIDL Advance)

Thisapplicationisonlineandquitesimpletocomplete.WearehearingthatfolkswhoappliedfortheAdvancetwotothreeweeksagoaregettingnotificationsback.Nofundstodate.

TheEIDLAdvanceapplicationandtheEIDLLoanapplicationarethesame.AsyoufilltheapplicationoutyouwillgettoapointwhereitasksifyouwanttheAdvanceandyoujustcheckyes.

The EIDL Application

IsonlineattheSBAwebsite:https://www.sba.gov/page/disaster-loan-applications#section-header-0.

Youmaybeaskedtoto provide:

§ CompletedSBAloanapplication(SBAForm5or5C).§ TaxInformationAuthorization(IRSForm4506T)fortheapplicant,principalsandaffiliates.

§ 4/1/20

EIDL Application, continued

• CompletecopiesofthemostrecentpersonalFederalIncomeTaxReturn.

• ScheduleofLiabilities(SBAForm2202).

• PersonalFinancialStatement(SBAForm413).

• Completecopy,includingallschedules,ofthemostrecentbusinessFederalincometaxreturnforprincipals,generalpartnersormanagingmember,andaffiliates.

• Acurrentyear-to-dateprofit-and-lossstatement.

EIDL Application, continued

§ IfthemostrecentFederalincometaxreturnhasnotbeenfiled,ayear-endprofit-and-lossstatementandbalancesheetforthattaxyear.

§ AdditionalFilingRequirements(SBAForm1368)providingmonthlysalesfigures.

§ Ifyouareaskedforthesedocumentsyouwillhavetoprovidethemwithinsevendays,soyoushouldgettheminhandinadvance,justincase.

Payroll Protection Program (PPP)

$377billioninSBAbackedloansmadebybankandnonbanklenders.Thepurposeistoencourageemployeeretention.

§ Fundscanbeusedtocoverpayrollcosts,andmostmortgageinterest,rent,andutilitycostsoverthe8weekperiodaftertheloanismade;and

§ Employeeandcompensationlevelsmustbemaintained.

Payroll Protection Program (PPP), cont.

§ Payrollcostsarecappedat$100,000onanannualizedbasisforeachemployee.

§ Duetolikelyhighsubscription,itisanticipatedthatnotmorethan25%oftheforgivenamountmaybefornon-payrollcosts.

§ Loanpaymentswillbedeferredfor6months.§ Theportionsoftheloanspentonpayingemployees,amortgage,rentorutilitiesforthebuildingyourbusinessoccupieswillnothavetoberepaid.

PPP, continued

§ Itisavailabletoallbusinessesincludingnotforprofits,soleproprietorships,self-employedandindependentcontractors.

§ Loansareavailableupto$10million§ Interestissetat1%withatwoyearterm§ Thefirstpaymentisdeferredforsixmonths§ Thereisnorequirementforcollateral,orguaranties§ EmployersmustmaintaintheiremployeesforatleasteightweeksaftertheloanoriginationdateorrehirefurloughedemployeesbyJune30th.

§ 4/1/20

How to Apply

§ Youdonotapplyforaspecificamount,youcompletetheapplicationandtheSBAwilldecidehowmuchyougetbasedontheformula.

§ PPPwillrefinanceanEIDLloan§ Youneedtofindalenderthatisacceptingapplicationsfortheseloans

§ Startwithyourbusinessbankingpartner§ Use,butbewareofon-linelenders

PURPOSE

Forgivableifusedforpayroll(minimumof75%ofthefundsreceived)andtheremainingforcertainoperatingexpenses(amountofanyEIDLadvanceisnotforgivable)

Tomeetfinancialobligationsandoperatingexpensesthatcouldhavebeenmethadthedisasternotoccurred(amountofanyEIDLadvanceisforgiven)

TERMSUpto$10million

1%interestrate

Upto$2million- ?

3.75%forbusinesses

2.75%fornon-profits

FORGIVABLE YESNO– EIDLLoan

YES– EIDLAdvance

MATURITY 2years 30yearsFIRSTPAYMENTDUE Deferred6months Deferred1year

Paycheck Protection Program Full EIDL Loan

PaycheckProtectionProgramvs.EIDLAdvance/Loan

SBA Express Loans

§ OfferedbySBAExpressLenders§ TosmallbusinesseswhocurrentlyhaveabusinessrelationshipwithanSBAExpressLender

§ Upto$25,000§ InterestrateiscappedatPRIME+6.5%§ Nocollateralisrequired§ “Fastturn-around”§ RepaidinpartorinfullbyEIDL,ifreceived

Debt Reduction Program

§ TheSBAwillautomaticallypaytheprincipal,interest,andfeesof current7(a),504,andmicroloans foraperiodofsixmonths.

§ TheSBAwillalsoautomaticallypaytheprincipal,interest,andfeesof new7(a),504,andmicroloans issuedpriortoSeptember27,2020.

Who is Community Capital New York

WeareanotforprofitcommunitydevelopmentlenderservingsevencountiesintheHudsonValleyandFairfield,CT.

Weprovidealternatefinancingtosmallbusiness(andaffordablehousing)thattraditionallendersareunabletooffer.

WearecertifiedbytheUSDepartmentoftheTreasuryasaCommunityDevelopmentFinancialInstitution(CDFI)andbytheUSSmallBusinessAdministration.

Emergency Express Loan

§ Upto$10,000§ AllborrowersmusthaveaFICOscoreof650orbetter§ Principleandinterestpaymentsdeferredfor90days§ 2%interestrate;27monthterm§ $25applicationfee§ 2%closingfee§ Approximatelyfivedayturnaround

Eligibility

§ MinimumFICOscoreof650forallbusinessowners§ LocatedinSullivan,Ulster,Dutchess,Putnam,Orange,Rockland,orWestchesterCounty

§ Nomorethan$1000inunresolvedjudgments,liens,collectionsorchargeoffs

§ Nopastdueonanyobligation(i.e.rent/utilities/childsupport)§ Noderogatoryinformationonyourcreditreportinthepastsixmonths

§ Nopersonalbankruptcyinthelast36monthsexceptformedicalreasons

To apply:

https://communitycapitalny.org/emergency-express-loan

Documentsyouwillneedtoprovide:

§ MostRecentPersonalTaxReturn§ MostRecentBusinessTaxReturn§ BusinessOrganizationalDocumentsincludingDBAinformationifapplicable

§ EINNumberVerification§ ACopyofyourDriverLicenseoranyGovernmentIssuedID§ Additionalinformationasneeded

Other Loans:

CommunityCapitalmakesloanslargerthan$10,000andtothosewhosecreditscoreislessthan650,however,thoseloanswillneedtobeunderwritteninamoretraditionalwayandwilltakelongertoprocess.

Thank You

Hanginthereandpleasedon’thesitatetoreachoutifIcanansweranyquestions:

kjacobs@communitycapitalny.org