COVID-19 Business Assistance
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 >
On March 27, 2020, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security or CARES Act to provide financial assistance to individuals and businesses. The CARES Act represents more than $376 billion in relief for struggling small businesses. Under this program, approved lenders, can provide 100% federally guaranteed loans to small businesses that maintain their payroll.
It is a complex piece of legislation, but the most important step you can take as a small business is to quickly educate yourself about the different programs and initiatives available for assistance and relief. The CARES Act established several new temporary programs to address the COVID-19 outbreak. Click below to learn about each program and to determine which program fits your business needs.
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.
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.
Non-Federal Funding Assistance Webinar is the fourth webinar led by the Town of Sahuarita. In this webinar, business owners learn about different non-federal funding options. Experts Lesli Pintor and Brian Quijada go over microloans available for small businesses and nonprofits.
A Q&A on the Paycheck Protection program is the third webinar led by the Town of Sahuarita. In this webinar, business owners learn about the Paycheck Protection Program. Experts Eliezer Asunsolo and Doug Christy cover topics such as eligibility requirements, application trends, and answer frequently asked questions about the PPP.
INSTILLATION OF HOPE: COPING WITH COVID-19 (April 14)
In this webinar, business owners learn about different strategies to stay mentally sharp during these unprecedented times. Expert Dr. Sherry Cain covers topics such as how your thoughts create feelings that drive behavior, taking ownership, and learning to take time to be healthy..
COVID-19: Resources Available for Small Businesses is the first webinar led by the Town of Sahuarita. In this webinar business owners learned about the primary resources of funds available to help businesses during these uncertain times. Expert Ellen Kirton covers topics such as the Paycheck Protection Program, CARES Act, and Disaster Recovery Loans.
Ensuring Business Continuity is the first webinar in an educational series led by the Arizona Commerce Authority. Business owners learned the application process, eligibility and provisions for the CARES Act, Paycheck Protection Program, Economic Injury Disaster Loan and Small Business Debt Relief Program. Information includes tactics involving operational considerations, including leadership strategies, employment and labor laws, real estate and mitigating business risk.
Workforce Continuity & Strategy is the second webinar in an educational series led by the Arizona Commerce Authority. This session provides guidance to business owners and HR executives on workforce solutions during this challenging time, including employment alternatives and available training programs.
Paycheck Protection Program
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% federally guaranteed loans to employers to pay up to eights weeks of payroll costs including benefits. The money can be used for payroll, rent, mortgage interest, or utilities. 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. We encourage interested businesses to apply soon.
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 ARE THE LOAN TERM, INTEREST RATE, AND FEES?
For any amounts not forgiven, the maximum term is 10 years, the maximum interest rate is 4%, zero loan fees, zero prepayment fee.
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.
WHERE SHOULD I GO GET A PPP LOAN FROM?
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.
HOW SHOULD I APPLY?
Directly through an eligible lender. 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. Visit the SBA PPP page for more information.
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.
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.