April, 21 2019

If You Are a Small Business, What You Should Do Now (PLAN C)

Millions of jobs and small businesses were lost due to COVID-19. You can avoid the subsequent economic crisis by being proactive. In my workshops, I stress that "Cash" is king and gets you through very tough times. PLAN "C" gets you needed cash, and it comes from your government.The Small Business Administration (SBA) and Congress are using the SBA loan program to help America's businesses, accessing the program, but it can be confusing and challenging for entrepreneurs. Many small business owners are not aware these resources exist. There are funds available, but the regulations can be complicated, and SBA has been overwhelmed with inquiries, and many banks have given out all the funds. So, what are you going to do?Together, let's focus on helping those business owners who are most vulnerable right now, to get them through this troubling time. Many businesses who already filed, moved to quickly and did not complete their forms correctly. Well, more than likely, they will go to the back of the line. So, I am going to give you some tips to move to the front of the line.The following are two emergency Local loan programs: One is SBA Disaster Loan program, and the other is Los Angeles City Small Business Emergency Microloan Program. However, this loan program is only for businesses that are in the City of Los Angeles. The Federal program I will cover later in this article.SBA Disaster Loan programs: borrowers can borrow up to two million dollars with fixed 3.75%. The great news that part of this loan is forgiven up to $10,000 by meeting some requirements.These disaster assistance loans are made directly by the SBA through the federal government. The disaster program has approved certain counties in the State of California and is working with the State to add additional counties. For up to date information visit the links Disaster Center contact phone is 800-659-2955 or email

Los Angeles City Small Business Emergency Micro-loan Program. The Los Angeles city a Micro-loan Program up to $20,000 with 0%-3% interest rate with three options. One: 0% for a term of up to 18 months, with repayment deferred for up to 6 monthsOption Two: 3% for a term of up to 5 years, with repayment deferred for up to 12 months (for-profit businesses)Option Three: 2% for a term of up to 5 years, with repayment deferred for up to 12 months (for tax-exempt businesses)For specific help completing these forms, you can contact a nonprofit financial organization called PACE Business Development Center, (213) 353-9400, or at their website

Federal Grants and Loans:Congress has authorized $349 billion in small business lending with two goals:

  • Help small businesses cover their near-term operating expenses during the crisis.
  • Provide cash incentives for entrepreneurs to keep their employees.

PPP Payment Protection Program loan program: PPP funded by and authorized by SBA lenders. These lenders are also overwhelmed with requests for cash. There are many qualifications you will have to meet and have approved by the SBA and their lenders.The maximum amount available to borrow is up to $10 million. The loan fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (at least 75% of the forgiven amount must be used for payroll).These Loan payments will also be deferred for six months. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness is reduced if full-time headcount declines or if salaries and wages decrease. This loan has a maturity of 2 years, and the unforgiven part interest will be 1% on the balance. Some qualifications and criteria have to be met."Our country's highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus," Fed Chair Jerome Powell said in the statement. "The Fed's role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible."There is a great webinar how to access all of these government programs, see below:To learn more 1:00 PM – 2:30 PM PDT, go to

Add to Calendar:

By Robert McKim iMBA, MS, CIPP, CISAMcKim Business ConsultingDigital Marketing, Business Analytics, Planning, Privacyrcmckim@gmail.com