COVID-19 Financial Resources for Business
Local Financial Resources
KANSAS DEPARTMENT OF COMMERCE CDBG-CV PROGRAM
Community Development Block Grant (CDBG) funds are an important tool in supporting small Kansas communities. Now, as communities come together in their response to COVID-19, additional CDBG resources are being made available through the CDBG-CV program.
CDBG-CV has two funding categories: Economic Development and Meal Programs.
ECONOMIC DEVELOPMENT GRANT
CDBG-CV Economic Development grants provide communities with funding to help local businesses retain jobs for low-to-moderate income people.
To be eligible to receive a CDBG-CV Economic Development grant, the recipient business must be a for-profit business and retaining jobs for low to moderate-income people. 51% or more of the full-time equivalent (FTE) jobs retained must be for persons from low to moderate-income households as defined by HUD.
CDBG-CV Economic Development grants can be used to pay for the following expenses:
- Working capital such as wages, utilities, rent, etc.
- The purchase of 60 days’ worth of inventory needed to reopen (60 days will begin on the day the business is allowed to reopen).
- Businesses with five or fewer employees (including the owner) are eligible to receive up to $25,000 per FTE job in CDBG-CV Economic Development grant funding (with a maximum of $30,000 per company).
- Businesses with between six and 50 employees are eligible to receive up to $35,000 for each FTE job in CDBG-CV Economic Development grant funding (with a maximum of $50,000 per company).
We still have $4,000 left for businesses in either Caney, or out in the county. To apply, click the link below:
National Financial Resources (updated January 2021)
This loan program provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program.
Here is a great document with Frequently Asked Questions that might be helpful:
If you received PPP in 2020, and would like to apply for funding again, you can use this application, fill it in, and bring it to an authorized lender for processing:
PPP APPLICATION - 2021 APPLICATION
Enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic.
Federal Deposit Insurance Corporation (FDIC) is working with regulated financial institutions to help them meet the needs of their customers.
SHUTTERED VENUES GRANT - OPENING SOON!!!!!
The U.S. Small Business Administration is overseeing the distribution of grants to shuttered venues and on Wednesday released details regarding eligibility and application priority for qualifying venues and related businesses.
Entities eligible to apply include:
- Live venue operators or promoters
- Theatrical producers
- Live performing arts organization operators
- Relevant museum operators, zoos and aquariums who meet specific criteria
- Motion picture theater operators
- Talent representatives, and
- Each business entity owned by an eligible entity that also meets the eligibility requirements
You can learn more details about the program here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/shuttered-venue-operators-grant#section-header-6
It is our hope that our these venues and businesses can get their necessary documents in order to submit applications as soon as possible. Top priority will go to those venues that sustained a 90% or greater revenue loss between April 2020 and December 2020.
Targeted EIDL Advance
(revised January 2021)
COVID-19 Targeted EIDL Advance was signed into law on December 27, 2020, as part of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act. The Targeted EIDL Advance provides businesses located in low-income communities with additional funds to ensure small business continuity, adaptation, and resiliency.
Advance funds of up to $10,000 will be available to applicants located in low-income communities who previously received an EIDL Advance for less than $10,000, or those who applied but received no funds due to lack of available program funding.
Applicants do not need to take any action at this time. SBA will reach out to those who qualify.
SBA will first reach out to EIDL applications that already received a partial EIDL Advance (i.e. between $1,000 - $9,000). Applicants will be contacted directly by SBA via email in the coming weeks with instructions to determine eligibility and submit documentation.
All communications from SBA will be sent from an official government email with an @sba.gov ending. Please do not send sensitive information via email to any address that does not end in @sba.gov.
Applicants may qualify if they:
- Are located in a low-income community. The definition of a “low-income community” is defined in section 45D(e) of the Internal Revenue Code. Note that the applicant must be located in a low-income community in order to qualify. Additional details on how SBA will identify low-income communities will be available soon on www.sba.gov/coronavirusrelief; AND
- Can demonstrate more than 30% reduction in revenue during an 8-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30% reduction.
Next, SBA will reach out to those who applied for EIDL assistance on or before December 27, 2020, but did not receive an EIDL Advance due to lack of program funding. These applicants will receive an email from SBA with instructions to determine eligibility and submit documentation. Applicants may qualify for a Targeted EIDL Advance if they meet the above criteria (low-income location and reduction in revenue) AND:
- Have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. Agricultural enterprises are not eligible.
All applicants may be asked to provide an IRS Form 4506-T to allow SBA to request tax return information on the applicant's behalf.
Please do not submit duplicate COVID-19 EIDL applications. Only prior applicants will be considered for the Targeted EIDL Advance.
SBA will reach out to you if you qualify!
A 30 year loan at 3.75% interest to help businesses cover 6 months of operating expenses
In response to the Coronavirus (COVID-19) pandemic, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for an Economic Injury Disaster Loan. The EIDL program is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to coronavirus (COVID-19).
- Disaster Loan Assistance Available: Economic Injury Disaster Loans (EIDLs) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
- Credit Requirements:
- Credit History – Applicants must have a credit history acceptable to SBA.
- Repayment – Applicants must show the ability to repay the loan.
- Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.
- Interest Rates:
- The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this disaster is 3.75 percent.
- Loan Terms:
- The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the financial condition of each borrower, which in turn will determine the loan term.
- Loan Amount Limit:
- The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.
- Loan Eligibility Restrictions:
- Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain required flood insurance and/or hazard insurance on previous SBA loans.
- Note: Loan applicants should check with agencies / organizations administering any grant or other assistance program under this declaration to determine how an approval of SBA disaster loan might affect their eligibility.
- Economic injury disaster loans cannot be used to refinance long term debts.
SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible.
For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail firstname.lastname@example.org.