In a time of uncertainty and constant change, we want our local business community to know the Town of Sahuarita is committed to providing relevant resources and information as we navigate these unprecedented times together. This page provides key information and resources, including links to relevant webinars for affected businesses.
We are here to help you navigate the information and advise you on next steps. Please contact us at 520-822-8817 or firstname.lastname@example.org to schedule an appointment for a live, video conference call with our economic development staff.
In addition, the Green Valley Sahuarita Chamber of Commerce is another great resource for you and your business. GVS Leads is a Business Retention & Expansion Program designed to strengthen the business climate in the Green Valley & Sahuarita area. Click on the following link to access the Chamber’s GVS Leads Program to learn about the available local professional services that can assist you with your needs: GVS Leads >
Below are a variety of federal and state financial programs for small businesses.
Active SBA Lenders Located in Arizona
This list includes conventional banks, credit unions, lending companies, SBA funded microlenders, certified development companies (504 loans), and out-of-state banks or credit unions with a loan production office in Arizona that have provided referral information.
These loans and loan advances will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. See FAQs below.
The Small Business Debt Relief Program provides immediate relief to small businesses with non-disaster SBA loans. The relief is also available to new borrowers who take out loans within six months of the President signing the bill into law. See FAQs below.
SAFEST OUTSIDE RESTAURANT ASSISTANCE PROGRAM
THIS PROGRAM HAS REOPENED.
The State of Arizona created the Safest Outside Restaurant Assistance Program, which is designed to assist bars and restaurants with funding for the infrastructure needed to expand their premises. With $2 million total in the fund, businesses may apply for up to $10,000 to cover expenditures for items restaurants need to extend their premises to approved outdoor spaces such as outdoor furniture, barriers, patio heaters, or parklets.
Applications are accepted on a rolling basis
and will close on March 5, 2021.
PAYCHECK PROTECTION PROGRAM (second round)
The Emergency Coronavirus Relief Act of 2020 was signed into law on December 27, 2020 providing $284 billion to the Small Business Administration (SBA) for additional loans. Small businesses impacted by COVID-19 may apply to receive a second PPP loan starting on Wednesday, January 13, 2021. First draw PPP loan applications open Monday, January 11, 2021. Below is a breakdown of important information for small businesses interested in applying for another loan.
The American Rescue Plan Act (ARP) was signed into law March 12, 2021, adding $7.25 billion to the program. Application deadline is May 31, 2021.
WHO IS ELIGIBLE TO APPLY FOR A SECOND DRAW PPP LOAN?
- 300 or fewer employees
- 25 percent drop in revenues during the first, second or third quarter of 2020 compared to the same quarter in 2019
- 501(c)(6) organizations with 150 or fewer employees are now eligible; nonprofit organizations are also eligible to apply
WHAT ARE THE LOAN TERMS?
- Borrowers may defer principal and interest payments until the SBA compensates lenders for any forgiven amounts, instead of the previous six month deferral period. Borrowers must apply for loan forgiveness within 10 months of the end of the covered period.
- Loan amount cannot exceed $2 million (previously $10 million).
- Loan duration period is five years.
HOW CAN THE FUNDS BE USED?
- Loans may be spent over a 24-week or 8-week period following disbursement.
- Sixty percent of loan proceeds must go towards payroll costs, leaving 40 percent of the loan to non-payroll expenses such as rent and utilities. Round two of PPP also covers additional expenditures such as personal protective equipment for workers, accounting needs, and more.
IS THERE LOAN FORGIVENESS FOR SECOND DRAW PPP LOANS?
- Small businesses can have PPP loans fully forgiven if the funds are spent for the proper purposes. The Small Business Administration (SBA) released the EZ Loan Forgiveness Application to support small businesses by making the PPP loan forgiveness application more borrower-friendly. EZ Forgiveness Application.
WHAT IF I AM A FIRST-TIME PPP BORROWER?
- First-time qualified borrowers are able to apply for PPP loans. PPP loans for first-time qualified borrowers follow the same terms as the original PPP loans.
HOW DO I APPLY FOR PPP?
- You can apply directly through an eligible lender. Find a PPP Lender.
- ACA Paycheck Protection Program Loan Forgiveness Calculator
- CARES Act Readiness Program for Small Businesses
- SBA COVID-19 Resources
- Interim Final Rule on Second Draw PPP Loans
Paycheck Protection Program (First round)
Under the CARES Act, the Paycheck Protection Program (PPP) provides a direct incentive for small businesses to keep their workers on payroll. The program would provide cash-flow assistance through 100 percent federally guaranteed loans to employers to pay up to eights weeks of payroll costs including benefits. Small businesses and other eligible entities can apply if they were harmed by COVID-19 between February 15, 2020 and June 30, 2020. The application went live on April 3, 2020.
WHO IS ELIGIBLE TO APPLY?
Small and medium sized businesses up to 500 employees including non-profits, independent contractors, and the self-employed. Businesses and entities must have been in operation on February 15, 2020 to be eligible to apply.
WHAT IS THE MAXIMUM LOAN AMOUNT AVAILABLE?
Up to 2.5 times the borrower’s average monthly payroll costs, not to exceed $10,000,000.
WHAT ARE THE ALLOWABLE USES OF LOAN PROCEEDS?
- Payroll costs
- Costs related to the continuation of group health care benefits during periods of sick, medical, or family leave, and insurance premiums
- Employee salaries, commissions, or similar compensations (exclusions apply)
- Payments of interest on any mortgage obligation
- Interest on other debt obligations that were incurred before the covered period
WHAT COSTS ARE ELIGIBLE FOR PAYROLL?
Payroll costs include salary, wages, commission, paid leave, allowance for dismissals, benefits, and state or local taxes or similar compensation, payment of cash tip or equivalent. However, payroll costs exclude compensation to any single employee in excess of $100,000 annually and any payments to persons that are not U.S. residents, and taxes imposed or withheld under chapters 21, 22, and 24 of the IRS code.
CAN THE LOAN BE FORGIVEN?
Yes, up to 100% can be forgiven if the proceeds are used for the approved purposes during the covered period. For purpose of loan forgiveness, however, the borrower will have to document the proceeds used for payroll costs in order to determine the amount of forgiveness. Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities.
WHAT HAPPENS IF SOME OF THE LOAN IS NOT FORGIVEN?
Any amount not forgiven will convert into a five-year loan, at a one percent interest rate.
WHAT ARE SBA’s LENDING CRITERIA?
SBA will allow lenders to rely on certifications of the borrower in order to determine eligibility of the borrower and use of loan proceeds and to rely on specified documents provided by the borrower to determine qualifying loan amount and eligibility for loan forgiveness.
HOW LONG DOES THE PROGRAM LAST?
The program is open until June 30, 2020, as it is intended for immediate payroll relief to ensure businesses do not do mass layoffs during this crisis.
HOW SHOULD I APPLY?
You can apply for the PPP through any existing SBA lender or through any federally insured depository institutions, federally insured credit union, and Farm Credit System institution that is participating. Click on the following link to find a lender: Active SBA Lenders in Arizona. You can download a copy of the PPP Borrower Application Form to see the information that will be requested when you apply with a lender.
Economic Injury Disaster Loan & Loan Advance
The Small Business Administration approved an Economic Injury Disaster Loan (EIDL) to serve small businesses in Arizona that have suffered substantial economic distress due to the COVID-19 response. The EIDL can provide for up to $2 million per loan for necessary working capital to help businesses experiencing a temporary loss of revenue.
Under the CARES Act, small businesses can apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. This loan advance does not have to be repaid. The EIDL Loan Advance is no longer available. Program closed on July 11, 2020.
WHO IS ELIGIBLE TO APPLY FOR AN EIDL?
This program is for any small business with less than 500 employees including non-profits, independent contractors, and the self-employed.
WHAT IS AN EIDL AND WHAT IS IT USED FOR?
EIDLs are lower interest loans of up to $2 million, with principal and interest deferment at the Administrator’s discretion, that are available to pay for expenses that could have been met had the disaster not occurred, this includes payroll and other operating expenses.
WHO IS ELIGIBLE FOR THE LOAN ADVANCE?
Small businesses eligible for an EIDL and who have been in operation since January 31, 2020, when the public health crisis was announced.
HOW DO I APPLY FOR AN EIDL?
You can apply for an EIDL online. Visit Economic Injury Disaster Loan to access the application form. If you need help with the application process, contact your local Small Business Development Center.
HOW DO I APPLY FOR THE LOAN ADVANCE?
To access the advance, you first need to apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance.
AM I STILL ELIGIBLE TO GET A PPP LOAN IF I GET AN EIDL?
If you have already received an EIDL unrelated to COVID-19 or you receive a COVID-19 related EIDL between January 31, 2020 and June 30, 2020, you may also apply for a PPP loan. However, you cannot use your EIDL for the same purpose as your PPP loan.
Small Business Administration Debt Relief Program
The Small Business Debt Relief Program provides immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under this program, SBA will cover all loan payments one these SBA loans, including principal, interest, and fees, for six months. The relief is also 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 PPP, 504 loans, and microloans. Disaster loans are not eligible.
HOW LONG IS THE DEFERMENT PERIOD?
The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
HOW DO I KNOW IF I AM ELIGIBLE FOR A 7(A), 504, OR MICROLOAN?
Businesses must meet size standards, be based in the U.S., be able to repay, and have a sound business purpose. Each loan program has different requirements, visit SBA Program Loans for more details.
WILL INTEREST CONTINUE TO ACCRUE DURING THE DEFERMENT PERIOD?
Yes, interest will continue to accrue. If borrowers prefer making regular payments during the deferment period, they may continue remitting payments during the deferment period. SBA will apply those payments normally as if there was no deferment.
WHAT HAPPENS AFTER THE DEFERMENT PERIOD?
Borrowers will be required to resume making regular principal and interest payments. Borrowers that cancelled recurring payments will need to reestablish the recurring payment.
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.