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SBA Relief Efforts for Small Businesses Affected by Coronavirus Pandemic

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SBA Relief Efforts for Small Businesses Affected by Coronavirus Pandemic

SBA Help for Coronavirus Outbreak:  SBA Programs Available for Small Businesses as Domino Effect Begins to Unfold within the Next 4-8 Weeks

Unfortunately, the Coronavirus (aka COVID-19) has breached our borders so prevention is no longer a viable remedy. Travel blockades and restrictions will not be effective.  Now that the virus is in the U.S., the primary objective is to contain “community spread.”

There are options available to try to stem the tide and deter “community spread.”  The 4 major options are discussed in an interesting Washington Post article, which can be accessed here:  https://www.washingtonpost.com/graphics/2020/world/corona-simulator/?utm_source=pocket-newtab

Whatever measures are implemented, it should be noted that this public health crisis will impact our economy – definitely in the short term (hopefully, not in the long term) – as containment of “community spread’ is the only viable response at this point – especially since we will not be able to conjure up an anti-viral drug or vaccine within the next 2 months to either cure or prevent the disease.  The objective is to prevent a systemic failure to our health care system, which occurred in Italy where arguably unethical decisions were made for triage purposes to care for those individuals with a better survival rate than those who’s odds are worse.  This translates into discriminatory health care – a selection process that does not bode well for the elderly (age discrimination) and for minorities (race-based due to preconceived notions of underlying health conditions).

So, what is the federal government’s plan for small businesses currently or about to be affected by measures implemented to date to stem “community spread’ from the Coronavirus Outbreak?

As of March 12, 2020, President Trump proposed the following ideas:

  • Increase SBA Funding by $50B in Response to Coronavirus Outbreak
  • Opportunity Zones
  • Legislation Passes for SBA COVID-19 Emergency Funding
  • Deferments on SBA 7(a) and 504 Business Loans and Microloans
  • Payroll Taxes 0%

For current small business affected by federal, state and local restrictions with SBA 504, 7(a) or Micro Loans, deferment or forbearance options may be one of your options.  Information relating to deferment options are available in the following links:

TI Memo 15-20

SBA Information Notice 5000-20004

President Trump announced Friday, March 13, 2020, the Small Business Administration is "stacked" with money to help small businesses during the Coronavirus outbreak.  See https://youtu.be/he83H_yI7RA.  A national emergency has been declared, freeing up additional federal funding.

President Trump announced earlier this week his intent to help the U.S. economy during the Coronavirus outbreak by increasing SBA funding by an unprecedented $50 billion.

More information will be released as the rules are published.

On March 13, 2020, the Coronavirus Preparedness and Response Supplemental Appropriations Act (H.R. 6074) was signed by the President and became law. The legislation provides $8.3 billion in new funding to support public health services and businesses negatively impacted by the COVID-19 outbreak. In addition to providing public health agencies with $950 million, the new appropriations are estimated to allow the SBA to provide $7 billion in loans to small businesses.

"For many American small businesses, the outbreak of coronavirus means fewer customers, gaps in supply chains, and workforce reductions," says House Small Business Committee Chairwoman, Nydia M. Velázquez. "That is why [...] the House acted to open critical economic injury loans to small businesses dealing with the consequences of the coronavirus outbreak. These low-interest loans will inject much-needed capital into Main Street businesses as they recover from the hardship of operating during a public health crisis."

https://www.sba-attorneys.com/wp-content/uploads/2020/03/sba-help-for-coronavirus-outbreak-sba-programs-available-for-small-businesses-as-domino-effect-begins-to-unfold-within-the-next-4-8-weeks.mp4

"I'm grateful that this bill includes a provision [...] to deal with some of the economic impacts of this." U.S. Representative Derek Kilmer said in a press release last week. "I've already heard some export-dependent manufacturers have been negatively impacted by this situation. It's important for the federal government to have the backs of our small businesses by providing this assistance."

Review the following sources here:

H.R. 6074

The House Committee on Small Business - Press Release

SBA Disaster Loan Program

The SBA website has not yet been updated with specific information about the loans and lending plans available for coronavirus-related small business recoveries.  However, it is likely that the SBA will offer the low-interest loans as part of its established Small Business Disaster Loan program.

If you are facing inevitable issues and problems with your SBA loan either with your SBA 7(A) lender, your Certified Development Corporation (CDC) regarding your SBA 504 loan or Disaster Loan (i.e., EIDL, Home or Business Disaster Loan), contact us today for a FREE initial case evaluation with an experienced SBA attorney at 1-888-756-9969

We can analyze your SBA challenges, issues and problems stemming from the Coronavirus health scare and advise you on a range of potential solutions in light of the current legislation, federal rules and regulations.

Why Hire Us to Help You with Your Treasury or SBA Debt Problems?

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Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure

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Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements

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Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.

$750,000 SBA 504 LOAN - NEGOTIATED TERM REPAYMENT AGREEMENT

$750,000 SBA 504 LOAN - NEGOTIATED TERM REPAYMENT AGREEMENT

Clients personally guaranteed SBA 504 loan balance of $750,000.  Clients also pledged the business’s equipment/inventory and their home as additional collateral.  Clients had agreed to a voluntary sale of their home to pay down the balance.  We intervened and rejected the proposed home sale.  Instead, we negotiated an acceptable term repayment agreement and release of lien on the home.

$375,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

$375,000 SBA 504 LOAN - SBA OIC CASH SETTLEMENT

Client personally guaranteed SBA 504 loan balance of $375,000.  Debt had been cross-referred to Treasury at the time we got involved with the case.  We successfully had debt recalled to the SBA where we then presented an SBA OIC that was accepted for $58,000.

$220,000 SBA 7A LOAN -DOT WAIVER OF ADMINISTRATIVE FEES & COSTS

$220,000 SBA 7A LOAN -DOT WAIVER OF ADMINISTRATIVE FEES & COSTS

Clients personally guaranteed an SBA 7(a) loan that was referred to the Department of Treasury for collection.  Treasury claimed our clients owed over $220,000 once it added its statutory collection fees and interest.  We were able to negotiate a significant reduction of the total claimed amount from $220,000 to $119,000, saving the clients over $100,000 by arguing for a waiver of the statutory 28%-30% administrative fees and costs.

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