Midwest Partnership is closely monitoring the impacts of COVID-19 to the region.  For additional resources to navigate assistance and information, refer to the Greater Des Moines Partnership COVID-19 Hub for the most up-to-date information. 

 

Greater Des Moines Partnership COVID-19 Hub

 

CARES Act (Coronavirus Aid, Relief, and Economic Security)


Small Business Guide and Checklist

Summary of Bipartisan Agreement of Cares Act 

Small Business Owner's Guide to the Cares Act

Cares Act for Assistance for Small Businesses

Press Release- SBA and Treasury Mobilization Effort to Distribute Funds

 

Below is an updated list discussing the main resources for Iowa Small Businesses combating COVID-19 impacts (as of 4/2). These details represent a brief overview of each program and be subject to change:

Paycheck Protection Program Loans, aka "PPP" (This is separate from the EIDL program.)

  • On April 3rd: Existing SBA Lenders* may choose to start processing loan applications for Small Businesses and Sole Proprietors.
  • On April 10th: Existing SBA Lenders* may choose to start processing applications for Independent Contractors and Self-Employed Individuals.
  • Loan Amount: Applicants may apply for loan funds of up to 2.5x the borrowers' average monthly** payroll costs, not exceeding $10 million.
  • Terms (Recent Change): 1% interest, 2yr maturity, loan payments will be deferred for six months, 100% guarantee by SBA, no collateral, no personal guarantee, no borrower or lender fees payable to SBA.
  • Loan Forgiveness: Loan amounts will be forgiven if the loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and employee and compensation levels are maintained. 
  • PPP vs EIDL: "If you received an SBA EIDL loan prior to April 3, 2020, you can apply for a PPP loan. If your EIDL loan was not used for payroll costs, it does not affect your eligibility for a PPP loan.  If your EIDL loan was used for payroll costs, your PPP loan must be used to refinance your EIDL loan. Proceeds from any advance up to $10,000 on the EIDL loan will be deducted from the loan forgiveness amount on the PPP loan."
  • Where do you apply?: At an SBA Approved lender* (not online like the Disaster Loans) 
  • What you'll need to apply: Payroll Documentation (such as tax documents or payroll processor records) and a completed Paycheck Protection Program Loan Application.
  • Non-profits: Most are eligible to apply.
  • Sources: https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf and https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp#section-header-2

*Applicants will need to consult with their local lender to see if they are participating in the PPP. Lenders must be approved and enrolled in the SBA program to participate.

**Monthly average from past 12 months

SBA Economic Injury Disaster Loan (EIDL Program)

  • Low interest, long term Economic Injury Disaster Loans for up to $25k unsecured, up to $2 million secured: The first payment is deferred for 12 months. The application has been simplified and can be completed online through the improved web portal at www.sba.gov/disaster. This is an updated application process, you do not need to upload any documents through the new system.
  • Applicants may now request an advance (grant) of up to $10,000 through the application portal.
    • The advance may be available even if an application was denied or is still pending. The advance will be forgiven.
    • New Applicants: Submit one application to apply for the grant funds and the loan. Click the checkbox towards the end of the application titled, "I would like to be considered for an advance of up to $10,000".
    • If applicants have already completed an application prior to the addition of the grant component: they need to submit a new application through the new online portal. This will not interfere with their "spot in line" or their original application, but it will make them eligible for the $10K advance.
  • The SBA Office of Disaster Assistance continues to urge people to apply, even if they aren’t sure they’re going to take the loan once approved (say, for example, a better solution becomes available to them).
  • By applying, businesses essentially "get in line" to see what they are eligible for. If approved, they'll know the amount of the loan, and then they may decide to take it or not.
  • Not all applicants will receive loan approval or receive the grant/advance.

 Iowa Workforce Unemployment COVID-19 Benefits

  • If employees are laid off due to COVID-19 or have to stay home to self-isolate, care for family members or due to illness related to COVID-19, they can receive unemployment benefits, provided several eligibility requirements are met.
  • Claims that are filed and identified as a direct or indirect result of COVID-19, will not be charged to employers.
  • https://www.iowaworkforcedevelopment.gov/updates-and-resources-about-covid-19

Iowa Target Small Business Sole Operator Fund: https://www.iowaeconomicdevelopment.com/programDetails?pid=137&ppid=26

Closed: Iowa Small Business Relief Fund and Tax Deferral - no longer accepting applications

 

 

 

 

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