Sole proprietorship, with or without employees, Small Business Loan Process
3-STEP LOAN PROCESS – application is done online – for the COVID-19 ECONOMIC INJURY DISASTER LOAN APPLICATION through the Small Business Association.
- You choose your business status.
- Check off the 7 eligibility statements
- Click CONTINUE
- Complete business information (name / EIN or SS# / etc.)
- Gross Revenue for 12 months prior to Jan. 31, 2020 – information from 2019 taxes
- Cost of Goods Sold for 12 months prior to Jan. 31, 2020 – information from 2019 taxes
- Business address / email / starting date / etc.
- Click NEXT to proceed to personal information section
- Click NEXT to proceed to additional info. Here will check: consideration for advance of up to $10000. Then you need to have information for a direct deposit. That is how funds will be distributed. You need: Bank Name / Account # / Routing #
- At this point you are basically done and just need to finish a few AGREE clicks to submit.
The process for someone not a sole proprietor is more involved and you will need more information regarding your business to complete the application that will display for you.
Progress was faster than expected, and applications for Paycheck Protection Program (PPP) Loans will be accepted as early as this Friday, 4/3/20.
More Information from Maine Small Business Development Centers (Maine SBDC) on Loans/Unemployment
Paycheck Protection Program (PPP) Loans:
Your 7(a) lender will begin accepting the actual applications on Friday. The application is meant to be a sample or preview and is not necessarily identical to the actual application.
Check out the comparison chart on EIDl v. PPP v. other SBA Loans.
Comparison chart to clarify the differences between the SBA COVID-19 Loan Offerings…It is current as of today but, like everything, subject to change! I will send you updated versions as they come. Remember, you cannot use a Disaster Loan (EIDL) and a PPP loan for the same purpose and funds received as an advance from EIDL will be deducted from the forgivable portion of PPP.
Employee Retention Credit
The Employee Retention Credit Program provides a fully refundable tax credit for 50 percent of wages, up to $10,000, for each employee kept on the payroll by businesses that have taken a financial hit because of the pandemic. Businesses qualify if they have been fully or partially shuttered by government order, or if their gross receipts are below 50 percent of what they took in during a comparable quarter in 2019. They are no longer eligible once their gross receipts rise above 80 percent of the comparable quarter.
The IRS published guidelines for businesses that want to apply for the credit, which is applied against the employers’ share of payroll taxes.