Slide 1: Title Slide Image: LSN Partners Logo 3 interlocking horseshoe shapes in red, blue, and gray. Text reads, “LSN Partners, Local, State, National” SBA Relief Programs for Small Businesses Coping with the COVID-19 Crisis Slide 2: Important Notices This webinar is provided as a general information service to clients and friends of LSN Partners, LLC. It should not be construed as, and does not constitute, legal advice on any specific matter, nor does this message create an attorney-client relationship. Information on the response to COVID-19 is changing frequently, sometimes daily. The information provided in this webinar is current as of April 8, 2020. If you are watching this webinar as a recording after the original recording date, please visit the SBA and U.S. Treasury websites for the most up to date information and guidance. Slide 3: LSN Partners, Guest Speakers Image: Cissy Proctor professional headshot CISSY PROCTOR, MANAGING PARTNER TALLAHASSEE OFFICE Image: Hector Barreto professional headshot HECTOR BARRETO, FORMER ADMINISTRATOR OF THE SBA LSN PARTNERS SENIOR ADVISOR Slide 4: Objectives Insight: Providing insight into two SBA loan programs: * Expanded Economic Injury Disaster Loan * Paycheck Protection Program Application: Understanding the application processes Questions: Answering Your Questions Slide 5: Economic Injury Disaster Loan – Who is eligible? Small businesses that have suffered substantial economic injury, that were in existence on January 31, 2020 and that fall into any of these categories: * Businesses, cooperatives, ESOPs and tribal small businesses with not more than 500 employees * Sole proprietors (with or without employees) * Independent contractors * Most private nonprofits and small agriculture cooperatives There are exceptions for other businesses. See https://www.sba.gov/federal-contracting/contracting- guide/size-standards for additional information. Slide 6: Economic Injury Disaster Loan – What are the parameters? Administrator: Small Business Administration Loan Amount: Up to $2 Million Interest rate: For-Profit 3.75% Nonprofit: 2.75% Term: Up to 30 years Deferral: 12 months *interest continues to accrue during deferment Guarantee: Personal guarantee waived for loans under $200,000 Collateral: If available, will be taken on loans above $25,000 Allowed uses: Funds can be used as working capital to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred Slide 7: Economic Injury Disaster Loan – What is the $10,000 grant? According to the SBA: * In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. * This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. * Funds will be made available following a successful application. * This loan advance will not have to be repaid. Slide 8: Economic Injury Disaster Loan – How do I apply for the loan and the $10,000 grant? How can I use the grant? The EIDL application is online, as is the grant request: https://covid19relief.sba.gov/#/ The grant funds can be used to: * Provide paid sick leave to employees; * Maintain payroll; * Meet increased costs to obtain materials; * Make rent or mortgage payments; or * Repay obligations that cannot be met due to revenue losses. Slide 9: Paycheck Protection Program – Who is Eligible? Small businesses that were in operation on February 15, 2020 with fewer than 500 employees, in addition to: * Sole proprietors, independent contractors and eligible self-employed individuals * 501(c)(3) nonprofit organizations * 501(c)(19) veterans organizations * Tribal small business concerns Affiliation rules have been relaxed for the PPP Slide 10: Paycheck Protection Program – What are the parameters? Administrator: Financial Institutions including Banks, Credit Unions Loan Amount: Lesser of $10 million or 2.5 times average monthly payroll costs Interest Rate: 1% Term: Up to two years Deferral: 6 months *interest continues to accrue during deferment Guarantee: None Collateral: None Prepayment: Allowed Allowed Uses: Payroll costs, benefits (such as health and sick), mortgage interest payments, interest on debts incurred before February 15, 2020, rent, utilities and refinancing of an EIDL loan Slide 11: Paycheck Protection Program – How do I apply? PPP loans are available through financial institutions, such as banks and credit unions, not the SBA. However, not all banks are currently participating in this program. Reach out to banks and lending institutions with which you have an existing relationship and let them know you want to apply through this program. Ask for a list of documents they are requiring. If you anticipate applying, fill out the application and pull together needed financial information as soon as possible while funds are still available. The application and additional guidance is available from the U.S. Treasury, at https://home.treasury.gov/policy-issues/top- priorities/cares-act/assistance-for-small-businesses. Slide 12: Paycheck Protection Program – How do I get my loan forgiven? According to the SBA Guidance: * The borrower will not be responsible for any loan payment (or accrued interest) if the borrower uses all the loan proceeds for forgivable purposes and employee and compensation levels are maintained. * The actual amount of loan forgiveness will depend, in part, on the total amount of: * Payroll costs * If incurred and/or dated before February 15, 2020: * mortgage interest obligations * rent payments on leases * utility payments under service agreements * If incurred over the 8-week period following the loan date * Forgiveness of non-payroll allowable expenses is limited to 25% of total forgiveness. * Borrowers must document use of loan proceeds to apply for forgiveness. Slide 13: Questions and Answers If you have additional questions, please email us at sbaquestions@lsnpartners.com Image: LSN Partners Logo 3 interlocking horseshoe shapes in red, blue, and gray. Text reads, “LSN Partners, Local, State, National”