SBA: Relief Program Efforts

The Bill passed. Now What?

The CARES Act was passed and included the Paycheck Protection Plan (PPP). The PPP will be administered by the US Small Business Administration and its SBA lending partners. As Berkshire Bank’s SBA lending operation, 44 Business Capital is diligently looking through the PPP and working with our trade association (NAGGL) to understand the framework of the plan while also aligning internal resources to handle the extraordinary amount of applications we will undoubtedly receive.

Photo by Tim Mossholder on Unsplash

As soon as we have application documents from the SBA along with what information is required, we will immediately get that information out to our stakeholders.

What advice do we have for small businesses?

We continue to suggest the following:

Be prepared to gather potentially needed documentation.

In the event that these items will be needed, it may be helpful to gather the following information:

  • Your 941 payroll information as far back as January 1, 2019
  • Proof of your rent payments (3 months) “pre-pandemic”
  • Copies of your utility bills (3 months) “pre-pandemic”

Familiarize yourself with relief offerings deferment options.

  • Check with your utility company to see what kind of relief programs they are offering.
  • Check in with your vendors and suppliers and work with them to ease cash flow. This situation is tough for us all, but small businesses are being impacted particularly so during this time.
  • If you have an existing SBA loan, ask for a deferment! Lenders may be willing to provide a 3-month deferment to help ease cash flow requirements during this crisis.
  • If you have conventional/non-SBA debt, approach your bank about relief in the form of Interest Only payments or payment moratoriums based on your specific situation.

Review your lease and insurance policies.

  • Speak with your landlord and review your lease with counsel for clauses such as, Force Majeure that may give you rent abatement if you are closed for actions beyond your control.
  • Review your insurance policy for business interruption insurance and see if you have benefits to which you are entitled.

Please note, a small business can continue to apply for assistance through the SBA Disaster Relief program: https://disasterloan.sba.gov/ela/.

If you are a nonprofit and looking for guidance in this matter please click here.

This is Direct Assistance from the SBA; the banks are not involved, but are here to provide guidance, point you in the right direction and/or help you gather the necessary information (financials, etc.).

Sincerely,

Greg Poehlmann, Senior Vice President, 44 Business Capital

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Berkshire Bank

Berkshire Bank

Berkshire Bank is a socially responsible community-dedicated bank with locations primarily in New England and New York empowering your financial potential.