Sparta Area Chamber of Commerce Newsletter April 2020 | Page 27

27 - The Sparta Ambassador - April 2020
1 Am I ELIGIBLE?
You are eligible if you are:
• A small business with fewer than 500 employees
• A small business that otherwise meets the SBA’s size standard
• A 501(c)(3) with fewer than 500 employees
• An individual who operates as a sole proprietor
• An individual who operates as an independent contractor
• An individual who is self-employed who regularly carries on any
trade or business
• A Tribal business concern that meets the SBA size standard
• A 501(c)(19) Veterans Organization that meets the SBA size standard
In addition, some special rules may make you eligible:
• If you are in the accommodation and food services sector (NAICS 72),
the 500-employee rule is applied on a per physical location basis
• If you are operating as a franchise or receive financial assistance
from an approved Small Business Investment Company the normal
affiliation rules do not apply
REMEMBER: The 500-employee threshold includes all employees:
full-time, part-time, and any other status.
2 What will lenders be
LOOKING FOR?
In evaluating eligibility, lenders are directed to consider whether
the borrower was in operation before February 15, 2020 and had
employees for whom they paid salaries and payroll taxes or paid
independent contractors.
What lenders will
NOT LOOK
FOR
Lenders will also ask you for a good faith certification that: • That the borrower sought and was
unable to obtain credit elsewhere.
1. The uncertainty of current economic conditions makes the loan
request necessary to support ongoing operations • A personal guarantee is not
required for the loan.
2. The borrower will use the loan proceeds to retain workers and
maintain payroll or make mortgage, lease, and utility payments • No collateral is required for the loan.
3. Borrower does not have an application pending for a loan
duplicative of the purpose and amounts applied for here
4. From Feb. 15, 2020 to Dec. 31, 2020, the borrower has not
received a loan duplicative of the purpose and amounts applied
for here (Note: There is an opportunity to fold emergency loans
made between Jan. 31, 2020 and the date this loan program
becomes available into a new loan)
If you are an independent contractor, sole proprietor, or self-employed
individual, lenders will also be looking for certain documents
(final requirements will be announced by the government) such as
payroll tax filings, Forms 1099-MISC, and income and expenses from
the sole proprietorship.
P re p ar e d by t h e U. S . CH A M B ER O F CO M M ER CE