Business Resources
Starting a business can be exciting, but let’s face it: you’re going to need help at some point. Here, we’ll collect links to resources, both paid and free that can help you get off the ground.
Paycheck Protection Program Flexibility Act (PPPFA) on June 5th, 2020
The PPPFA modifies the PPP to allow businesses whose PPP loans are forgiven to continue to defer Social Security taxes through the end of 2020. Prior to the passage of the PPPFA, PPP loan recipients were required to stop deferring Social Security taxes as soon as any portion of their PPP loan was forgiven.
The PPPFA also includes other provisions that expand the time periods to spend PPP loans and provides increased flexibility to spend PPP funds on expenses other than payroll costs. Some of the other key provisions include:
Reduction of the percentage of loan proceeds that must be spent on payroll costs from 75% to 60%;
Extension of the “covered period” for use of funds from eight weeks to 24 weeks (or 12/31/2020, if earlier);
Extension of the period of time for employers to reverse decreases in employment and/or wage levels that occurred between February 15 and April 26, 2020 from June 30, 2020 to December 31, 2020;
Lengthening the period of loan maturity from two years to five years; and
Permission for borrowers to defer payment until loan forgiveness is determined, instead of six months after loan disbursement.
Employers that received PPP loans prior to June 5, 2020, may elect to retain the original eight-week covered period to spend loan proceeds. Those that use the longer covered period of up to 24 weeks may need to demonstrate compliance with the requirements to maintain employment levels through the entire 24-week period or to restore wage and full-time equivalent employee levels by December 31, 2020.
COVID-19 Resources
Both the federal government and the state of Minnesota have passed legislation regarding the current outbreak of coronavirus. On the federal side, businesses can apply for disaster relief loans (EIDL) or a payroll protection loan (PPP) that includes a grant of up to $10,000. Minnesota also has a loan program (DEED) designed for businesses directly affected by the current stay-at-home order. Below, you’ll find more specific guidance on each program.
Our analysis has been that the EIDL is the easiest loan to qualify for with the least stringent terms, but generally least favorable terms. The Payroll Protection Program has significantly better terms, but will apply to fewer businesses. The Minnesota DEED loan program will be the most favorable for some businesses, but is only available to those that don’t qualify for another loan.
Economic Injury Disaster Loan: EXPIRES DECEMBER 31, 2021
3.75% API
30 Years Loan
Deferment of first payment up to a year
Loans for up to $2,000,000 based on working capital needs
Can be approved without collateral on only credit score if loan is less than $200,000
A portion may be forgivable based on loan terms
Apply at: www.SBA.gov/disaster
Payroll Protection Program: 2nd rounD EXPIRES 3/31/2021
Up to 4% API
10 Years
Up to 2.5 times average monthly payroll for employees making up to $100,000
NEW Rules Apply
Up to $10,000 is forgivable if used on payroll, rent, mortgage interest or costs relating to supply chain disruption
Apply with your local lender
Minnesota DEED Loan: EXPIRED
0% API
5 Years
Deferment of first payment up to 6 months
Loans for $2,500-$35,000
See eligibility at mn.gov/deed/business/financing-business/deed
Documents to have ready
This list isn’t exhaustive nor applicable to all lending institutions, these are items our partners and clients have requested in relation to these loan programs.
Payroll reports from any period since 1/1/2019
Tax returns for 2018-2019
Individual lender's calculator for loan amounts and forgivable amounts
Income Comparison statements for 2019 comparing to 2020
The lender's application
Balance of existing SBA Loan
Articles of Incorporation/Organization
Bylaws/Operating agreement for organization
940/941s since 1/1/2019
Bank statements for payroll bank account(s)
1099s (for independent contractors seeking a loan)
Services We Offer
Business Registration
Bookkeeping
Payroll
Tax Preparation & Planning
