Other Programs and General FAQ

General FAQ

What is Gorge Business Resources?
Jen Hackett, Anna Cavaleri, and Melissa Tokstad are local attorneys and business owners who wanted to find a way to use their skills to assist small business owners in the Gorge during this time of uncertainty and upheaval.  These types of volunteer legal and business services are now being rolled out in cities all throughout the United States, but we wanted to make sure that the Gorge business owners got local attention from professionals who live here.  We built a team of local professionals (and are always happy to have more) to volunteer to answer your questions and help you work through issues as they arise.  We want nothing more than to see your businesses succeed and the Gorge to thrive again.

Where should I start?
-Discuss SBA loans with your board of directors, if applicable.
-Begin completing the PPP loan application in preparation for submission on April 3rd. 
-Contact your bank to confirm whether it is an SBA lender and to confirm the process for submitting your application. (If you don’t have a banker, try to use Lender Match to find one, or contact us for recommendations.) 
-Consider applying directly to the SBA for a Disaster Loan. (The SBA website has been overloaded, so you may be required to do this one on paper.)

Landlord/Vendor Issues

Have Oregon and Washington issued rent or eviction moratoriums due to the COVID-19 pandemic?
Oregon has issued a moratorium on residential evictions due to nonpayment of rent for 90 days.  There is currently no such moratorium on commercial property.  Washington issued a similar moratorium on March 18th for 30 days, which likely will be extended.

What should I do if I cannot pay my rent?
There may be a number of options available to you.  We suggest that you contact your landlord as soon as possible to try to make alternate or deferred payment arrangements.  You also may be able to use money obtained as part of an SBA loan under the CARES Act to pay your rent.  Depending on the terms of your lease and the status of your business, you may be eligible for rent abatement.

Small Business Debt Relief Program

This program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law.

Which SBA loans are eligible for debt relief under this program?
7(a) loans not made under the Paycheck Protection Program (PPP), 504 loans, and microloans. Disaster loans are not eligible (see p. 7 for more information on these).

How does debt relief under this program work with a PPP loan?
Borrowers may separately apply for and take out a PPP loan, but debt relief under this program will not apply to a PPP loan.

How do I know if I’m eligible for a 7(a), 504, or microloan?
In general, businesses must meet size standards, be based in the U.S., be able to repay, and have a sound business purpose. To check whether your business is considered small, you will need your business’s 6-digit North American Industry Classification System (NAICS) code and 3-year average annual revenue. Each program has different requirements, see https://www.sba.gov/fundingprograms/loans for more details.

What is a 7(a) loan and how do I apply?
7(a) loans are an affordable loan product of up to $5 million for borrowers who lack credit elsewhere and need access to versatile financing, providing short-term or long-term working capital and to purchase an existing business, refinance current business debt, or purchase furniture, fixtures and supplies. In the program, banks share a portion of the risk of the loan with SBA. There are many different types of 7(a) loans, you can visit this site to find the one that’s best for you. You apply for a 7(a) loan with a bank or a mission-based lender. SBA has a free referral service tool called Lender Match to help find a lender near you.

What is a 504 loan and how do I apply?
The 504 Loan Program provides loans of up to $5.5 million to approved small businesses with longterm, fixed-rate financing used to acquire fixed assets for expansion or modernization. It is a good option if you need to purchase real estate, buildings, and machinery. You apply through a Certified Development Company, which is a nonprofit corporation that promotes economic development. SBA has a free referral service tool called Lender Match to help find a lender near you.

What is a microloan and how do I apply?
The Microloan Program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers to start up and expand. The average microloan is about $13,000. These loans are delivered through mission-based lenders who are also able to provide business counseling. SBA has a free referral service tool called Lender Match to help find a microlender near you.

I am unfamiliar with SBA loans, can anyone help me apply?
Yes, SBA resource partners are available to help guide you through the loan application process. You can find your nearest Small Business Development Center (SBDC) or Women’s Business Center.

Small Business Tax Provisions

Employee Retention Credit for Employers Subject to Closure or Experiencing Economic Hardship
This provision would provide a refundable payroll tax credit for 50 percent of wages paid by eligible employers to certain employees during the COVID-19 crisis. The credit is available to employers, including non-profits, whose operations have been fully or partially suspended as a result of a government order limiting commerce, travel or group meetings. The credit is also provided to employers who have experienced a greater than 50 percent reduction in quarterly receipts, measured on a year-over-year basis.

Wages of employees who are furloughed or face reduced hours as a result of their employer’s closure or economic hardship are eligible for the credit. For employers with 100 or fewer fulltime employees, all employee wages are eligible, regardless of whether an employee is furloughed. The credit is provided for wages and compensation, including health benefits, and is provided for the first $10,000 in wages and compensation paid by the employer to an eligible employee. Wages do not include those taken into account for purposes of the payroll credits for required paid sick leave or required paid family leave, nor for wages taken into account for the employer credit for paid family and medical leave (IRC sec. 45S).
• The credit is not available to employers receiving assistance through the Paycheck Protection Program. The credit is provided through December 31, 2020.

Delay of Payment of Employer Payroll Taxes
This provision would allow taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022. Payroll taxes that can be deferred include the employer portion of FICA taxes, the employer and employee representative portion of Railroad Retirement taxes (that are attributable to the employer FICA rate), and half of SECA tax liability.
• Deferral is not provided to employers receiving assistance through the Paycheck Protection Program.

Source: sbc.senate.gov