From:                                             Alabama SBDC, The University of Alabama <asbdc@ua.edu>

Sent:                                               Monday, April 27, 2020 12:15 PM

To:                                                  Sean Magers

Subject:                                         PPP Resumes; No Word on EIDL

 

Better access for underserved & rural communities, if you act fast

 

 

 

 

Alabama Small Business Development Center Network

 

PPP Applications Resume

This morning, SBA began accepting PPP applications from lenders once again. Several lenders we spoke with confirmed that the SBA portal was overwhelmed with applications; they were having difficulties with uploading loan data. If you have not already submitted any application to your lender, you are encouraged to do so immediately. While there is talk of a "Round 3" of funding, nothing is certain.

·    SBA Approved Lenders

·    Lenders Accepting Applications from Non-Customers

 

 

UPDATED GUIDANCE

 

Housing stipends; principal residence in US; Ag producer, farmer, rancher eligibility 

 

 

UNDERSERVED & DISADVANTAGED BUSINESSES:

The new law provides $60 billion for smaller lenders, including community banks and CDFIs, which serve lower income and disadvantaged communities. The $60 billion will be split evenly between institutions with less than $10 billion in assets and those with between $10 billion and $50 billion. To be clear, it does not set aside any funds for underserved or disadvantaged businesses; it only sets aside funds for the lending institutions that serve these markets. These businesses must still apply and get in line.

 

SBA ECONOMIC INJURY DISASTER LOAN (EIDL)

·    SBA has issued 14,433 "forgivable advances" in Alabama, valued at $63,107,000. The average advance was $4,095. (As of Friday 4/24)

·    SBA has approved 336 Disaster Loans in Alabama, valued at $63,376,000. The average disaster loan is currently $188,619. (As of Friday 4/24)

The additional $60 billion for the EIDL program provides $10 billion for grants and $50 billion for loans. With the additional funding provided by the new COVID-19 relief package, SBA will resume processing EIDL Loan and Advance applications that are already in the queue on a first come, first-served basis. There is a chance that they may wait to reopen the application portal until they have finished processing and funding the existing application queue, to ensure that adequate funds are available.

 

·    They are not currently accepting new applications.

·    Official word from SBA is "the opening date/time for EIDL resumption will be announced 'later'”. 

 

Need to check on the status of your Disaster Loan application? Scroll down for instructions.

 

 

 

After a 10-15 minute update, we will focus on questions from participants.

 

Select a Date & Register Here

 

 

Disaster Recovery: We Will Make it Through This

 

Today we pause for a moment to remember the lives that were lost nine years ago.

 

We should also remember the way that the entire state came together to help our neighbors. Like then, we are all in this together.

 

 

While we'd like for disasters to come one at a time (and preferably spaced years apart), we know that might not be the case. Please "Prepare to Stay in Business."

Dust off - or start writing- your Business Continuity / Disaster Plan.

 

Discounting & The Bottom Line

Everyone is looking forward to reopening their business. Are you tempted to cut your prices to generate sales? A word of caution... don’t discount your prices unless you can achieve the same or better gross profit margin. It may require large increases in sales to generate the same amount in gross profit.

 

A much better approach is to deliver the discount through, for example, an add-on product. This should deliver more dollars of gross profit to the business. See the effect of discounting on gross profit below. This is one of the many items we cover in our GrowSmart class, and in our one-on-one advising meetings.

 

 

 

Disaster Loan Status?

"No one has contacted me."

"I have not received any calls or emails."

 

How can you check on the status of your SBA Disaster Loan?

 

1.  Email SBA, with your application number. disastercustomerservice@sba.gov

2.  Call the help line, but be prepared to wait. Call 1-800-659-2955

 

 

Suggestion: Check your personal credit report.

When you application is being reviewed by a loan officer, they will check your credit. If you see that your credit was pulled, it likely means that SBA is working your application.

 

Reminder: SBA has instructed all business owners that applied before the evening of March 29th to submit another application through the new portal. Companies that applied on March 30/31 were being contacted just last week. The current delay is 3-4 weeks. SBA is not currently accepting additional EIDL applications.

 

Also, please don't shoot the messenger.

 

 

Recorded Webinars

 

Upcoming SBDC Webinars

 

The Alabama Procurement Technical Assistance Center (PTAC) has offices that are co-located with the Alabama SBDC. Procurement Specialists help companies compete for government contracts. The AL-PTAC offers the state's only no-cost bid-matching service.

 

·    5/6: Writing a GSA Proposal

AITC has teamed with IBT Online and SIDO to share experiences and expertise on how online business development tools can help companies reach global markets during these times of social distancing.

 

·    4/30: International Online Marketing

 

·    5/7: International E-Commerce

 

 

 

The Alabama SBDC is funded in part through a cooperative agreement with the US Small Business Administration. Hosted by the University of Alabama - Office for Research & Economic Development.

Accredited by the Association of SBDC's.

 

 

 

Alabama SBDC Network | ASBDC.org

 

Alabama SBDC, The University of Alabama | 621 Greensboro Ave, Tuscaloosa, AL 35401-1761