Tips on COVID-19 Relief - Chamber of Commerce
SCORE: 10 Tips to small business in filing for emergency federal coronavirus crisis relief
1. Stay persistent and relentless in seeking the federal relief through the PPP and EIDL programs. Now is no time to give up or slow down this pursuit.
2. Keep calm. Don’t panic. Recognize that the SBA, the banks and the rest of the governmental agencies are experiencing immediate tremendous demands on their resources that are unprecedented and unforeseen.
3. Things will improve. The SBA is daily adding participating banks to the PPP. The Federal Reserve is buying already approved PPP loans from banks to give them incentive to ramp up their participation in this program. There is growing political support to expand the funding of both the PPP and EIDL programs.
4. To file a PPP application, contact your primary banking relationship first. If you have an existing outstanding business loan with them, they have the most incentive to support your application to increase the security of their loan to you.
5. After filing the PPP application, don’t stop. Also, file the EIDL Loan and EIDL Loan grant applications with the SBA. This increases your chances of getting financial relief. If you get both PPP and EIDL loans that exceed your needs, you can reject the EIDL without penalty.
6. Make sure that the PPP and EIDL applications that you file are accurate and complete. Any incomplete or inaccurate filings will be sent back to you after delay for correction.
7. Since the PPP and EIDL applications require you to submit specific financial data about your business, contact your CPA or tax preparer for help, if needed, to ensure your applications are complete and correct.
8. Keep in close contact with your creditors. Let them know that you are pursuing this emergency federal relief. If possible, make partial payments to them as a sign of your good faith. They generally have incentive to work with you on deferred payment terms, since the alternative to them is normally worse.
9. If applicable, stay especially close to your landlord for your business property. Although there is a temporary moratorium in Denton County on court evictions, your underlying rent obligations will very likely continue, although you should check your lease terms to be sure. If the landlord is your most important creditor affecting your ability to continue in business, give him/her priority attention in negotiating payment terms. Business owners with mortgages on their business properties should contact and work with their lenders for the same reasons.
10. Follow information releases closely from the SBA. SCORE, the FM Chamber of Commerce and your SBA supported bank. Things are changing rapidly in the details and administration of the federal emergency relief programs.