President's Update: Invitation and Making Sense of the $350 Billion

By The Chamber For a Greater Chapel Hill-Carrboro

4/1/2020

Carrboro Business Alliance Member News CEO Statement

Message to: Chamber Members
From: Aaron Nelson
Date: Wednesday, April 1, 2020
Subject: Invitation: All Business Briefing FRIDAY - SBA Loans and Making Sense of $350 Billion Available for Small Businesses

Chamber Members,

These are difficult times with more challenges ahead, but please know that you are not alone. Your local Chambers of Commerce, downtown organizations, and economic development professionals are working together to serve and support you.

FIRST - The Breaking News: Last night the U.S. Department of Treasury released the Paycheck Protection Program application and supplemental information on their business support website. Beginning on April 3, small businesses, eligible nonprofits, and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders (local banks). Independent contractors and self-employed individuals can apply beginning April 10. Helpful Checklist and Brochure.

SECOND - The Invitation: Please join SBA Senior Area Manager Patrick Rodriguez and business leaders across the region on Friday, April 3, at 2:00pm via Zoom video conference for an "All Business Briefing" on the new Small Business Economic Injury Disaster (EIDL) Loan application (and $10,000 cash advance) and the Paycheck Protection Plan’s forgivable loans, part of the CARES Act, a $2 trillion federal stimulus bill signed into law on Friday. Come prepared to ask your questions and get them answered. We will also cover local COVID-19 impacts and recent Stay at Home orders. Register now to get the zoom URL.

THIRD - The Summaries: Scroll down for quick summaries of the different national and local loan and grant options.

In partnership,

Aaron
Aaron Nelson, IOM
President and CEO
The Chamber For a Greater Chapel Hill-Carrboro
#SuccessfulTogether

Simple Funding Summaries

FEDERAL RELIEF

1) (*NEW) $10K Loan Advance for Fast Cash: The SBA (via the recent CARES Act) is now offering small businesses and non-profit organizations up to a $10,000 Advance on an Economic Injury Disaster Loan (EIDL). The Loan Advance funds will be made available within three days of a successful application, and the loan advance will not have to be repaid. To apply for this “EIDL Advance,” go to www.SBA.gov/Disaster and complete the new, streamlined application. (Note - to receive the advance, you must submit the new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.)

2) (*UPDATED) $2M Low Interest Loan for Revenue Loss: The SBA Economic Injury Disaster Loan Program (EIDL) opened to NC small businesses and non-profit organizations on 3/19 to help overcome temporary loss of revenue due to COVID-19. The program offers low-interest loans (up to $2 million) with favorable terms (3.75% for small businesses and 2.75% for non-profits, repaid over 30 years). Note - the SBA website and application process has been updated and so please follow the new streamlined SBA guidance.

3) (*NEW) $10M Loan with Forgiveness for Payroll: The SBA (via the recent CARES Act) is managing a new small business payroll support program, called the Paycheck Protection Program. Last night the Department of Treasury released the Paycheck Protection Program application and supplemental information, on their business support website. This $350 billion program helps small businesses and eligible non-profit organizations keep employees on payroll by offering loan forgiveness. Loans of up to $10 million are available and the SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses. Beginning on April 3, small businesses, eligible nonprofits, and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders (local banks). Independent contractors and self-employed individuals can apply beginning April 10. Helpful Checklist and Brochure

LOCAL RELIEF

4) (*LAST CALL) $25K Carrboro Zero Interest Loans for Payroll: The Town of Carrboro created a nearly $500,000 “Small Business and Nonprofit Emergency Fund” to help Carrboro-based businesses and Carrboro-serving nonprofits with short-term payroll coverage. This is a 90/10 loan/grant with 0% interest repaid over 3-7 years with deferred payback beginning six months after the State of Emergency is lifted. Deadline is April 1, 2020.

5) (*ONGOING) $10K Low Interest Loans for Immediate Cash Needs: The CarrboroUnited fund for independent Carrboro-based businesses is accepting applications for non-asset-based loans up to $10,000 for short-term cash needs for payroll and other essential expenses. This fund is made available by local philanthropist and founder of Fleet Feet, Tom Raynor. Funding decisions are made within 48 hours after meeting and delivery of documents. For more information, contact Tom at raynorco@gmail.com.

6) (*ONGOING) $20K Orange County Zero Interest Loans & $5K Grants for Revenue Loss: The Orange County “Emergency Small Business Funding Program” is providing zero interest loans and grants to Orange County small businesses experiencing revenue loss due to the COVID-19 pandemic. The zero interest loans are up to $20,000 with repayment over five years and the grants are up to $5,000, for a max of $25,000 per applicant. Deadline April 10, 2020.