Coronavirus business

SBA Economic Injury Disaster Loan Guide

Updated 2:18 pm, 3/20/2020

Ohio has been qualified for the Economic Injury Disaster Loan program because of the coronavirus. Ohio small business owners, small agricultural coops, and private nonprofits can now apply for these loans up to $2.5 million, up to 30 years.

1. General Overview

Economic Injury Disaster Loans are exactly that – loans, not grants. They will require repayment (basic terms can be found here). These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Loan rates are expected to be 3.75% for businesses and 2.75% for non-profits with long-term repayments in order to keep payments affordable. Terms will be determined on a case by case basis. Here are other things you need to know:

  • These loans are only intended as working capital loans utilized to assist with impact caused by the coronavirus emergency efforts. The EIDL’s are not for other purposes such as expansion, new equipment, property purchases, etc. that do not have anything to do with the national emergency we are facing.
  • Interest rates will likely be 3.75% for businesses and 2.75% for non-profits.
  • Loan applications will be evaluated by SBA loan officers. Criteria include:
    • Credit history acceptable to the SBA
    • Repayment abilities
    • Eligibility – businesses in a declared state/county, suffered working capital losses due to the declared disaster (not a general downturn in business due to the economy or other reasons.)

2. Process Overview

To get an overview of the three-step process, you can go here – Overview).

Note – we recommend filing electronically, but are providing links to the forms so that you can get your information ready to go. You can file with paper, but we expect that will take longer.

3. Required Documents

For Businesses – documents you need to complete an application:

  • Business Loan Application (SBA Form 5) completed and signed by business applicant.
  • Request for Transcript of Tax Return (IRS Form 4506-T) completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).
  • Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.
  • Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.
  • Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).

For Businesses – additional documents you may need to submit

  • Complete copies, including all schedules, of the most recent Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
  • If the most recent Federal income tax return has not been filed, a year-end profit and loss statement and balance sheet for that tax year is acceptable.
  • A current year-to-date profit and loss statement.
  • Additional Filing Requirements (SBA Form 1368) providing monthly sales figures.

80+ Businesses Resources for Coronavirus

http://www.tsepcoronavirus.com – updated 12:50 am, 3/26/2020.

COVID-19

Updates include:

  • New post – “8 Employer Resources to share with people laid off” in Section 5, Workforce Resources.
  • Several new small business and entrepreneurial resources in Section 6, Resources for Industry, Retail, and Small Business.

1. Business Resource Text Alerts – Simply text coronavirus to 474747, and you will be added to the list to receive updates on business resources and any new developments and events. More than 120 have signed up so far.

2. State Resources

  • Ohio Stay At Home Guidelines – What businesses and work is “essential” We have consolidated all of our information on this topic into one postread more here. (14 resources)
  • JobsOhio COVID-19 Resources.
  • Ohio Department of Health Coronavirus Site (Governor’s Executive Orders), Screening Employees. Coronavirus Hotline – 833-427-5634 or 833-4-ASK ODH.
  • Governor DeWine Press ConferencesOhio Channel (Governor’s Press Conferences, daily at 2 pm)
  • HeritageOhio Downtown Main Street Coronavirus Resources.

3. Federal Resources

4. Local Resources – here are some local initiatives and resources. (8 recommendations and resources):

  • Open Letter to Businesses from Seneca County Health Commissioner Beth Schweizer – provides guidance on how to operate. (5 recommendations)
  • Seneca County Health DistrictCoronavirus Update page
  • Health District Live Updates – Health District & Commissioner Facebook (press conferences, MWF at 10:30 am) – see release.
  • Personal Protective Equipment (PPE) initative by EMA – facilitating finding, storing and distribution of PPE where it’s needed most (e.g., healthcare facilities).

5. Workforce Programs

  • 8 Employer Resources to share with people laid off – put together by Seneca County JFS, this Employer Resource List (and Video) provides a number of great resources to help laid off employees through this difficult time.
  • SharedWork Ohio is a voluntary layoff aversion program. It allows workers to remain employed and employers to retain trained staff during times of reduced business activity. The participating employee works the reduced hours each week, and the Ohio Department of Job and Family Services (ODJFS) provides eligible individuals an unemployment insurance benefit proportionate to their reduced hours. 
  • Unemployment Benefits & Layoff Procedures – employees and employers may require resources for mass layoff procedures and short-term unemployment benefits. Find out more.
  • Finding Temporary Workers – If you have any temporary job opportunities you wish to promote, please contact Carol Kern at 419.680.3041 (mobile) and by email at Carol.Owen@jfs.ohio.gov. She can put your job openings on the state system as well as on the Jobs Seneca County Facebook page for free. Businesses have already successfully filled temporary vacancies this way.
  • Available Jobs – A current list of available jobs for employees who have to be laid off or sent home as of last Friday (3/20/2020) has been put together and is available here (with links). You can also go to ohiomeansjobs.com.
  • Workforce Consulting – For employer assistance with any of these benefits, you can contact Carol Kern with OhioMeansJobs Seneca County at 419.680.3041 (mobile) and by email at Carol.Owen@jfs.ohio.gov.

6. Resources for Industry, Retail & Small Business

7. Remote Working Solutions & Other Online Resources

  • LogMeIn (GoToMeeting) – The remote working company LogMeIn is offering a remote working toolkit for free for three months.
  • Google Google Hangouts Meet Premium is now available for free through July 1, 2020. You can have up to 250 people on at one time, record and save to Google drive, and livestream up to 100,000 people within a domain.

8. Bank & Financing Assistance

Here are some links to banks and financing institutions operating in Tiffin and Seneca County and their programs and procedures for their customers regarding the coronavirus, including safety and in some cases, hardship relief programs.

9. Mental Health Resources

  • Crisis Text Line – The Mental Health Recovery Services Board of Sandusky, Seneca and Wyandot Counties announced it that people can text 4hope to 741741 to reach crisis counselor to deal with feelings like anxiety and isolation in these trying times.
  • Higher Ground Counseling Center – free, 30-45 counseling sessions to help those (including business owners and their employees) whose financial stability has been affected by mandated closures. Call 567.220.6055 or email owner Lea Frank at lfrank@highergroundcc.com.