Start free trial
Start free trial

SBA Disaster Loans Overview | Coronavirus Update March 18

SBA Disaster Loans Overview | Coronavirus Update March 18

function authorName(){var last=lastName||last_name;var first=firstName||first_name||'Housecall Pro Contributer';var authorTitle=title&&", "+title;var authorName=last?first+" "+last:""+first;return authorTitle?""+authorName+authorTitle:authorName;}

Posted by Ian H., CEO

March 19, 2020

Service companies are the backbone of the economy and Housecall Pro is committed to doing everything we can to help during the Coronavirus pandemic. 

I hope you find the resources below helpful. Please share this email with other home services companies. 

Sincerely,

Ian Heidt

CEO, Housecall Pro

Live webinar every night at 5p PT / 8p ET

Hosted by Mel Fairleigh, SVP of People at Housecall Pro

Get your employment questions answered.

Facebook group

_____________________________________________

DOWNLOAD THE SLIDE DECK -->

READ THE UPDATE --> keep scrolling

_____________________________________________

March 18, 2020 update quick update

Yesterday the World Health Organization  WHO COVID-19 Situation Report for March 17 reported 179,112 confirmed COVID-19 cases and 7,426 deaths across 160 countries/territories/areas, an increase of 11,526 cases, 475 deaths, and 8 countries from the previous day. Confirmed cases of the novel coronavirus have topped 200,000 worldwide, according to data collected by Johns Hopkins University.

Italy’s coronavirus death toll increased by 475 today (Wednesday), the largest daily increase recorded in any country.

The Johns Hopkins CSSE dashboard is reporting a total of 6,519 COVID-19 cases and 115 deaths in the United States as of 11am on March 18.

The United States and Canada have agreed to close their 5,500-mile border to “all nonessential travel” and experts around the globe warn that life will be severely disrupted for many months.

US jobs lost

A new poll found that

as a result of the coronavirus epidemic in the United States. The poll was

. In total, 18% of respondents have been laid off or had their hours reduced due to the COVID-19 pandemic. Notably, this impact was greater in respondents earning less than $50,000 per year (25%) and those living in small cities or suburban areas (23%).

The survey was conducted March 13-14, so it does not account for the recent increases in social distancing across the country

, including school closures, limiting restaurants to takeout or delivery, or the shelter in place order in the San Francisco Bay area.

Travel & movement restrictions

A number of countries, regions, and states have implemented some form or movement or travel restrictions, ranging from

border closures

to “

shelter in place

” orders to broader social distancing efforts.

Essential Business only orders.
New legislation today

The Senate on Wednesday approved a

relief bill passed by the House last week that provides free testing and paid leave for certain workers as the White House solidifies plans for an even larger package to address the fallout of the pandemic.

The Families First Coronavirus Response Act, the

includes free coronavirus testing, expanded funding for food security programs, increased funding for Medicaid and state unemployment insurance, and paid sick, family and medical leave for

workers at companies with 500 employees or fewer

. The majority of workers in the country work at companies with more than 500 employees, many of which already offer paid leave.

Here's what's included in the legislation:

  • Free coronavirus testing:

    Federal health providers such as Medicare and Medicaid, and private health insurers, are required to provide free testing.

  • Expanded funding for food security programs:

    The Special Supplemental Nutrition Program for Women Infants and Children, the Emergency Food Assistance Program and the Senior Nutrition Program will receive supplemental funding to assist Americans affected by the virus. The package also provides funding for state waivers to pay for meals for children who normally receive them at school.

  • Emergency family and sick leave:

    Employees of companies with fewer than 500 employees and government staffers may take

    up to 12 weeks of protected family and medical leave, including two weeks at full pay, with any additional weeks taken with no less than two-thirds of the employee's usual pay,

    to either quarantine or seek preventative care. Small and mid-sized businesses would receive tax credits to pay for medical and family leave of up to 100% of the wages they pay out. Employers with fewer than 500 employees are required to provide two weeks of sick leave at full pay for employees who are seeking treatment for the virus. Self-employed individuals would also receive tax credits to receive paid leave. Workers would be eligible for paid sick leave if they have a child whose school or childcare facility is closed due to the coronavirus. These employees are required to receive not less than two-thirds of their regular pay. 

  • Unemployment insurance:

    States will receive additional funding to provide unemployment insurance should there be an increase in uninsured people.

  • Medicaid funding:

    The bill would strip employment requirements for Medicaid, and increase Medicaid funding through 2021.

Congress is expected to continue considering legislation to respond to the crisis in the coming weeks.
What we should be doing

Social distancing remains the very best option for all of us. 

Additionally, continuing to lead with transparency and communication with all of your employees. Getting information from reliable sources. The CDC, OSHA, the WHO. Not forwarding unverified reports or rumors, and going straight to your county and state government websites for timely information.

Today’s daily topic

Economic Injury Disaster Loans (knows as EIDLs)

Economic Injury Disaster Loans (EIDLs) – Working capital loans to help small businesses, meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.

To begin, a county needs to be approved by the Small Business Associate (SBA) for an Economic Loss Declaration, a request submitted by the governor.

Once declared, economic injury assistance will be available to businesses within that county, as well as contiguous counties around the declared county.

Credit Requirements:

• Credit History – Applicants must have a credit history acceptable to SBA.

• Repayment – Applicants must show the ability to repay the loan.

• Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.

Interest Rates:

The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this program is 4 percent.

Loan Terms:

The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the

financial condition of each borrower, which in turn will determine the loan term.

Loan Amount Limit:

The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. 

Find more information on the SBA’s Economic Injury Disaster Loans at:

.

3-STEP PROCESS
  1. Submit an application online at disasterloan.sba.gov/ela
  2. SBA verifier will estimate your losses and a loan officer will determine eligibility. A loan officer will work with you to reach a determination. The goal is 2-3 weeks to a decision.
  3. Loan closing documents sent and an initial disbursement of $25,000 for economic injury (working capital) is made within 5 days. Your loan may be adjusted based on changing circumstances (either up or down).
To summarize:
  1. Check if you are in an “Eligible Disaster Area”

  2. Apply Online

  3. Check Application Status

 _____________________________________________

Legal disclaimer

Housecall Pro is offering the Coronavirus Evening Update for Home Service Businesses for informational purposes only and to foster thoughtful communication and discussion regarding the COVID-19 pandemic; Housecall Pro is not offering advisory services or otherwise advising or representing any members of the group invited to participate.  Housecall Pro is not offering legal, medical or other professional advice in the Coronavirus Evening Update and makes no representations or warranties regarding the content of the Coronavirus Evening Update. Participants should obtain independent advice relating to their businesses and their particular circumstances.

_____________________________________________

Let's Grow Your Business.

Get tips, tricks and trade secrets to help you build a profitable and thriving service business.

Submit

By clicking 'Submit' you agree to our Terms of Service (including the provisions of such terms that require you to arbitrate certain disputes) and you acknowledge you have read our Privacy Policy. You also consent to receive calls or SMS messages, including by automated dialer, to the number you provide, for informational and/or marketing purposes relating to our business. Consent to receive such calls or messages is not a condition to using our services.