SBA (SMALL BUSINESS ADMINISTRATION) DISASTER LOANS
The Small Business Interruption Loans (SBIL)
If your business has been or will be substantially affected by the COVID-19 crisis it is important to consider all available avenues to sustain the business now and for the future.  Key provisions of the proposed CARES ACT may offer much needed financial assistance.  The Small Business Interruption Loan (SBIL) as provided for in the CARES Act draft as of March 21, 2020 will piggyback off of the disaster loan assistance program already in place.  It is important to know that  the language is proposed legislation and continues to develop. Consistent with an offensive approach, it is also important that you are ready to act when the final version of the CARES ACT is passed.  As of now:

Who Qualifies

  • For profit Business
  • Private Non-profit
  • Public Non-Profit
  • 500 employees or less

Loan Terms

  • Formula based on average total monthly payments during the prior year for payroll, mortgage, rents and other liabilities multiplied by 4
  • Maximum loan is $10,000,000
  • Repayment up to 30 years
  • May qualify for loan forgiveness
    • Forgiveness = cost of maintaining payroll 3/1/20-6/30/20
    • Formula driven based on several metrics
    • Will require documentation

3 Step Application Process

  • Step 1 – Apply for the loan
  • Step 2 – Property verified and Loan Processing Decision Made
  • Step 3 – Loan Closed and Funds Disbursed

Information Needed

  • Personal Information such as name, address, email, etc.
  • Social Security numbers or EIN of applicants
  • Financial Information (e.g. income, account balances, and monthly expenses)
  • Disaster Request for Transcript of Tax Return (Form 4506-T)
  • Complete copies of the most recent Federal income return or financial statements
  • Personal Financial Statement (Form 413) for each principal owning 20% or more and each general partner or managing member
  • Schedule of Liabilities (Form 2202)
  • Additional information may be requested; applicant has 7 days to submit. Examples of such additional information are:
    • Completed information for affiliated businesses
    • 2019 financial statements and current year to date financial statements
    • Monthly income and expenses (Form 1368)

As you know, the situation is rapidly changing and new information is being made available constantly. We are committed to keeping you informed. On behalf of the entire Somerset team, thank you for your continued support and loyal business as we all navigate these unique circumstances. Please feel free to reach out directly to your advisor or  with any questions or concerns. As always, we are here and ready to help.