Please contact your financial institution to discuss solutions for commercial and/or home mortgage loans and remedies. In a recent poll, we are told that virtually all lending institutions are willing to work with individual customers to develop custom repayment solutions. Strategies have included:
- Loan Forbearance
- Interest-Only Payments
- Rate Restructuring
- Waiving Late Fees
- Bridge Loans
- Pausing Credit Reporting
- Unsecured Lines of Credit with No Origination Fee
Again, not all institutions offer every remedy, so please reach out to your lender directly.
For businesses interested in the Paycheck Protection Program described in an earlier update, we continue to reach out to financial institutions to identify eligible lenders. To date, we have confirmed:
- 1st Security Bank
- Olympia Federal Savings
- Washington Business Bank
- US Bank
We’ve been hearing feedback from some businesses that SBA loans aren’t applicable to them, don’t provide enough funding and other resistance. Please take a few moments to acquaint yourself with the SBA loan programs including the Paycheck Protection Program Protection Program (which offers loans up to $10 million for impacted businesses and can, in some cases, be forgiven and converted to a grant), and the Economic Injury Disaster Loan. The Kaufman Foundation summarizes some other differences below.
“Congress has authorized $349B in small business lending with two goals:
- Help small businesses cover their near-term operating expenses during the crisis.
- Provide cash incentives for entrepreneurs to keep their employees.
This program is intended to help you replace your revenue during this period of severe disruption. In short, there are three major benefits:
- Larger loans than typical SBA loans. The maximum loan size for businesses is equivalent to 250 percent of the employer’s average monthly payroll costs (e.g., roughly 10 weeks of payroll expenses) or $10 million, whichever is less.
- You are eligible for loan forgiveness equivalent to major expenses (staff, rent, utilities, and more) during the eight-week period under which the loan is originated.
- Since many businesses have already been forced to lay off or furlough employees, the program also includes a clause that allows you to qualify for loan forgiveness, up to $10,000 per employee, if you re-hire back to your staffing level pre-crisis (February 1, 2020) by June 30, 2020.
The bottom line: if you keep your doors open as a business and keep your staff employed, your SBA loan converts to a grant.”
When in doubt, apply for the SBA loan. The sooner you get your business in the line, the sooner you may get relief.
Thurston EDC Executive Director, Michael Cade and Thurston Chamber CEO/President, David Schaffert, along with various guests, will provide up-to-date information on business resources, state, federal and local actions, COVID-19 status and advocacy efforts for our community.
This is a virtual talk show that will take place every Thursday at 2:15 p.m.
- Thursday, April 2. Register here: https://zoom.us/webinar/register/WN_27hSMbfMSoOkkPzAV1TtCQ
- Thursday, April 9. Register here: https://zoom.us/webinar/register/WN_r3nd8CgVQvqzI17Cl37H2w
- Thursday, April 16. Register here: https://zoom.us/webinar/register/WN_VJttnCpnTYq1lHVpok1Xxg
- Thursday, April 23. Register here: https://zoom.us/webinar/register/WN_igmFqInFSgy4Rd2q-bqIgg
- Thursday, April 30. Register here: https://zoom.us/webinar/register/WN_k5q99T-hRZaGE8IMVlKndw
Where: This webinar will be hosted on Zoom. Click on the registration links above to attend the Zoom session of your choice.
While we’re doing our best to keep up to changes (and expansions) in unemployment benefits, things continue to evolve every day. To keep fresh, consider subscribing to the Employment Security Department’s updates roster: https://public.govdelivery.com/accounts/WAESD/signup/15249.
Recent updates regarding temporary business shut downs, standby and partial employment options is available here: https://esd.wa.gov/newsroom/covid-19-employer-information?utm_medium=email&utm_source=govdelivery#Temp_shutdowns.
If you or someone you know is concerned about mortgage payments or even the potential for foreclosures, the Washington State Department of Financial Institutions has developed several resources that can help and has also issued guidelines for lending institutions during this pandemic. For more information: https://dfi.wa.gov/homeownership?utm_medium=email&utm_source=govdelivery
The Thurston Economic Development Council is processing an average of 40 calls per days from impacted businesses. The average call length is currently 30-minutes. Whether you have business questions about operating in challenging circumstances or accessing resources to get through the next several months, the Hotline is your first stop:
HOTLINE HOURS: MONDAY-FRIDAY, 9:30 AM-3:30 PM
The Washington Tourism Alliance has set up this new platform for support small business: showWAlove.com.
Businesses with fewer than 500 employees are eligible for an SBA loan, as are self-employed individuals, independent contractors, and sole proprietors. These loans, which are eligible for forgiveness, will be made by banks, credit unions and other lenders. Local businesses can learn more by visiting the SBA website at https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources.
Here’s a shortcut to SBA loan/grant application: https://covid19relief.sba.gov/#/
If you are a business considering one of these options, review this particularly helpful fact sheet to find out whether you qualify and understand how funds can be used: Small Business Fact Sheet.
*Please note, the forgivable loans offered through the Paycheck Protection Program are offered for up to $10 Million for qualifying businesses who maintain certain levels of employment.