SMALL BUSINESSES NEED CUSTOMERS! TIPS TO SUPPORT THE …€¦ · businesses and communities in the recovery process.” ~ Patrice Frey, President and CEO of the National Main Street

N C M a i n S t r e e t & R u r a l P l a n n i n g C e n t e r 4346 Mail Service Center, Raleigh, NC 27699-4346 919-814-4658

SMALL BUSINESSES NEED CUSTOMERS!

TIPS TO SUPPORT THE LOCAL ECONOMY

#SupportLocalSafely | #NCDowntownStrong | #NCSmallBizStrong

Note to Users: The references to companies mentioned herein are not intended as

endorsements of services by the NC Main Street & Rural Planning Center. However, now, more

than ever, is the time to share best practices and borrow from one another to provide resources

for our communities.

“As individuals, we have the power to change the dynamics of our local economy, by making

thoughtful choices about where we spend our money.”

~ Liz Parham, Director, NC Main Street & Rural Planning Center

Tips on What You Can Do to Help Small Businesses

➢ Stay Healthy, Wash Your Hands Often, and Follow the NC Department of

Health & Human Services Guidelines.

➢ Follow the Social Media Channels for Small Businesses in your Community.

➢ Connect Virtually with Small Businesses for Products and Services.

➢ Comment and Share Posts from Small Businesses.

➢ Shop Small/Shop Local Online or Over the Telephone.

➢ Leave 5-Star Reviews for Businesses that You LOVE.

➢ Order Take-Out from Local Restaurants, Coffee Shops, Bakeries, etc.

➢ Promote Your Positive Experiences on Social Media.

➢ Buy Gift Cards NOW and Use Them Later.

➢ Buy Items NOW for Future Pick Up or Put Them on Layaway.

➢ Tip Generously.

➢ Maintain Subscriptions to Health Clubs, Coffee Clubs, etc.

➢ Participate in Virtual Events and Activities Offered by Businesses.

➢ Help a Small Business Owner with Childcare.

➢ If You Know a Small Business Owner, Ask How You Can Help Them!

Our sincere thanks to the National Main Street Center, various state and local Main Street

organizations, and many other partners for sharing information used to create this publication.


DOWNTOWN & COMMUNITY LEADERS

TIPS & RESOURCES TO SUPPOR T TH E LOC AL ECON OMY



endorsements of services by the NC Main Street & Rural Planning Center. However, now, more

than ever, is the time to share best practices and borrow from one another to provide resources

for our communities.

“Amidst this uncertainty, however, one thing is clear: Main Street organizations have an essential

role to play in supporting businesses during this difficult period, and our Main Street leaders will

be even more important when fears about the virus subside and we are actively supporting

businesses and communities in the recovery process.”

~ Patrice Frey, President and CEO of the National Main Street Center

Tips on What You Can Do to Help Small Businesses

Communicate Health & Safety:

➢ Make sure that businesses are following the NC Department of Health and

Human Services guidelines.

➢ Make sure that you and your businesses are following the Governor’s

Executive Orders. NEW Executive Orders Added

o Statewide Stay at Home Order went into effect on 3/30/2020 at

5:00 p.m.

➢ Text 898211 and write COVIDNC to receive Coronavirus text alerts.

➢ Food banks have an urgent need for donations. Get or give food through

a food bank near you. www.feedthecarolinas.org

Provide Leadership:

➢ Be a leader in the community and set the example for supporting small

businesses.

State Resources

➢ Share resources and financial opportunities with your businesses.

o Encourage businesses to call Business Link North Carolina (BLNC) at

800.228.8443. BLNC staff are available Monday through Friday, 8:30

am – 4:00 pm. Se Habla Español. There are Spanish-speaking

counselors.

▪ Call volume in BLNC is expected to be high, and callers may

need to leave a message and await a returned call. Please

be patient.

▪ BLNC counselors will gather basic information from callers

and refer the case to the most appropriate resource – small

2 | P a g e N C M a i n S t r e e t & R u r a l P l a n n i n g C e n t e r 4346 Mail Service Center, Raleigh, NC 27699-4346 919-814-4658

business experts with the either the Small Business

Technology Development Center (SBTDC) or the state’s

Small Business Center Network (SBCN) -- for assistance.

▪ SBTDC and SBCN small business counselors will assess needs –

working, for example, to assist with the preparation of any

U.S. Small Business Administration (SBA) loan application.

o Obtain a working knowledge of Unemployment Insurance System

changes and direct businesses to the following resources:

▪ The Frequently Asked Questions (FAQs) at:

https://des.nc.gov/need-help/covid-19-information

▪ Website is www.des.nc.gov and the call center is 888-737-

0259.

o Direct Businesses to the NC COVID-19 Rapid Recovery Loan

Program

The Golden LEAF Foundation announces $15 million in funding to

launch a rapid recovery loan program in response to economic

losses related to Coronavirus (COVID-19). Golden LEAF funding will

support the NC COVID-19 Rapid Recovery Loan Program by

enabling loans to be made to eligible businesses for up to $50,000

with zero interest and no payments for six months. If not repaid in six

months, the loan will automatically convert to a term loan. The NC

COVID-19 Rapid Recovery Loan Program

(https://ncrapidrecovery.org/) is managed by the NC Rural Center,

a statewide nonprofit that has been supporting small business

owners for more than 30 years. Read press release here.

➢ Register essential industries: o Businesses designated as Essential Business and Operation are listed

in the Executive Order. If your business is not listed among essential

businesses that can remain open, you may submit a request to be

considered an essential business.

▪ Businesses should submit the form online (preferred) or

email [email protected]. If you use email

include the following:

▪ Doing Business As (D/B/A, if applicable)

▪ Sales and Use Tax Registration Number (if applicable)

▪ Address

▪ Name of Contact Person

▪ Email Address

▪ Phone Number

▪ Website

▪ Description of Business

▪ Justification: Please provide a brief explanation of why

your business should be designated as essential.

Federal Resources

o Direct businesses to Federal Disaster Loans

The U.S. Small Business Administration (SBA) is known for its flexible

and useful lending programs - especially in times of crisis. In the

wake of the coronavirus pandemic, SBA has redoubled efforts to


administer its Economic Injury Disaster Loan Program. Working with

state governors, SBA will fund low-interest loans for businesses and

non-profit organizations that have been severely impacted by the

outbreak. Loans may total up to $2 million and provide targeted,

short-term support to help borrowers compensate for revenue

losses caused by the virus. Learn more about the Disaster Loan

Program at www.sba.gov/disaster.

https://www.sba.gov/page/coronavirus-covid-19-small-business-

guidance-loan-resources

o On the Hill: Summary of Coronavirus Aid, Relief, and Economic

Security Act (CARES Act) blog post by National Trust

Preservation Leadership Forum 3/28/2020

• Senate Small Business Provisions

• Section by Section Summary of the Programs

o NEW 4/7/2020 – A Breakdown of the CARES Act - National Small

Business Town Hall by Inc. and U.S. Chamber of Commerce

➢ Communicate to businesses that the Federal Income Tax filing and

payment deadline has been extended to 7/15/2020. Other Resources

➢ A Resource Guide to Coronavirus for Government Leaders by

Government Technology Magazine

➢ Designate public on-street parking spaces for curb-side pickup for

restaurants and retailers in order to increase convenience for

customers.

➢ Dedicate a page on your website where resources can be easily

found by your downtown business owners. o Example - Information Clearinghouse – Together, the Rowan County

Chamber of Commerce, Rowan Economic Development Commission,

and Rowan County Tourism developed a website that is serving as a

clearinghouse for guidance and resources available to workers and local

businesses impacted by COVID-19. The groups are committed to keeping

the information up-to-date and easily accessible.

➢ Research business interruption insurance and disseminate information

to your businesses.

➢ Help business owners find new forms of revenue. o Example - Work with small business owners to help them identify new

needs being generated by COVID-19. Are there products or services that

are and could be in demand that existing businesses could provide, at

least in the short-term? Ask business owners to participate in brainstorming

sessions with five other businesses, for example, to discuss potential

business opportunities.

Source: Hitting the Pause Button on the Economy: Fund Small Business Relief

of COVID-19 Now

➢ Work with property owners to offer free or reduced rent for business

tenants for a specified period (or defer it). Business retention is a better

long-term economic development strategy than business recruitment.

➢ Offer some online business courses during this time when businesses

owners may be at home so that your businesses will come back

stronger when they reopen.


➢ Create a low-interest loan program that will get businesses back on

their feet.

➢ Participate in webinars and educational opportunities to help keep

businesses informed.

Communicate with Businesses:

➢ Use a multi-faceted approach to regularly communicate with businesses.

➢ Be safe but be present. That means being seen in person and virtually,

even as one engages in social distancing, not necessarily every day, but

perhaps every two to three days.

➢ Assign businesses to your downtown board and committee volunteers, in

order to check on the businesses in the district. Make sure you are

following the recommended guidelines for social distancing and taking

into consideration the board members that are in vulnerable groups.

➢ Survey small businesses to better understand their needs. o Example - https://www.surveymonkey.com/r/AvlChamber-COVID o Example - https://www.surveymonkey.com/r/TransylvaniaCOVID19

Communicate with the Community – Make it EASY to Support Local Businesses

➢ Compile (and frequently update) a list of local businesses offering online

shopping and share it widely via website(s) and social media. Ask

volunteers to help you keep this updated.

➢ Compile (and frequently update) a directory of restaurants providing

take-out and delivery services and share it widely via website(s) and social

media.

➢ Make videos to help promote takeout service offered by local restaurants. o Example - Video from Belmont, NC -

(https://www.youtube.com/watch?v=6qu0So_4n4I)

➢ Share web and social media posts from local businesses through your

social media outlets.

➢ Write and share stories about the businesses in your downtown. Create a

personal connection to encourage the community to support their

neighbors in this time of need.

➢ Share the commitment businesses are showing to protect public health

and the safety of customers, staff, etc., and the actions they are taking to

do so.

➢ Promote locally sourced products and local supply chains on web and

social media platforms.

Provide Technical Assistance

➢ Work one-on-one with businesses that may need assistance to increase

their online presence through their website, social media, email

newsletter, etc. Also, help businesses as needed update their Google My

Business profile.

➢ Work one-on-one with businesses to use technology (e.g. FaceTime,

Skype, Facebook Live, and others) to have live, face to face,

interactions/events with customers for buying/selling, responding to

inquiries, conducting meetings, etc.


➢ Work one-on-one with businesses to livestream educational programs,

fitness training, music and art lessons, gallery tours, and more.

➢ Work one-on-one with businesses to provide social activities/interactions

with and between customers (e.g. a brewery offering a virtual version of

its trivia nights or a salon previewing new trends, styles, and techniques).

➢ Work one-on-one with professional and service businesses to offer virtual

services such as telemedicine, counseling, and other

appointments/consultations.

➢ Organize a website through which interested businesses can sell their gift

cards/certificates to generate additional cash flow. o Example - #AshevilleStrong established to help western NC businesses sell

gift cards. FAQs section has a video on setting up a site in a few hours. o Example - #LoveHendo and LoveHendo.com established to support small

businesses in Hendersonville and Henderson County, NC.

Resources:

Articles

➢ Hitting the Pause Button on the Economy: Fund Small Business Relief of

COVID-19 Now – by Recast City, 03/15/2020.

➢ https://www.independentwestand.org/4-resources-small-businesses-

coping-coronavirus-outbreak/ - by Independent We Stand, 03/17/2020

➢ Marketing Your Business During Uncertainty – by Locable, 03/17/2020

➢ How to Rescue Main Street from Coronavirus Before It’s Too Late – by

Economic Innovation Group, 03/18/2020

➢ Small Business Task Force Unveils $300 Billion Emergency Coronavirus Relief

Package – by U.S. Senate Committee on Small Business &

Entrepreneurship, 03/19/2020

➢ COVID-19 Pandemic: What Small Businesses Can Do – by Institute for Local

Self Reliance, 03/19/2020

➢ Guide to Conquering A Business Crisis by SBTDC

➢ Local Government as a Lender: Emergency Loans for Small Businesses by

UNC School of Government, 3/20/2020

➢ 8 Steps for Successful Fundraising During the Coronavirus Crisis by Amy

Eisenstein

Agency Resources

➢ National Main Street Center - COVID-19 Main Street Resources - NEW

Resources Added

➢ National Main Street Center – COVID-19 Main Street Checklist

➢ NC Restaurant & Lodging Association – COVID-19 FAQ for Restaurant &

Hotels

➢ Resources for Small Businesses from Co Starters.

➢ UNC School of Government COVID-19 Resource Information

➢ Here We Grow NC by the NC League of Municipalities

➢ Best Practices for Farmers Markets – by NC State Extension

➢ COVID-19 And Food Safety FAQ by NC State Extension


➢ Downtown Happy Hour – Stir Crazy about Downtown hosted by Arnett

Muldrow, Place & Main, & Revitalize or Die – Every Thursday from 5-6 p.m.

on Facebook

➢ Nonprofits and Coronavirus, COVID-19 by the National Council of

Nonprofits – NEW Resources Added

➢ Nonprofit Pandemic Resources by NC Center for Nonprofits - NEW

Resources Added

Technology

➢ Creating a YouTube channel to talk about products, tell stories about the

business, etc.

(https://support.google.com/youtube/answer/1646861?hl=en)

➢ Microsoft – Currently offering a free version of Microsoft Teams that allows

users to schedule video calls and conferences with no limit on the number

of participants.

➢ Google – Providing free access through July 1, 2020, to its advanced

Hangouts Meet video-conferencing capabilities to all G Suite and G Suite

for Education customers.

➢ ShopLoyal™ (shoployal.com) – App that allows merchants to recognize

customer loyalty by providing a higher level of customer service, VIP

offers, personalized treatment, real time two-way messaging, and more.

Merchants register with ShopLoyal and pay a monthly subscription fee to

use it. The company offers a 60-day free trial. Shoppers can download the

app for free.

➢ Downtown Business Status Directory that can be added to your website –

from Locable


organizations, and many other partners for sharing information used to create this publication.


SMALL BUSINESS

TIPS & RESOURCES TO SUPPOR T TH E LOC AL ECON OMY



endorsements of services by the NC Main Street & Rural Planning Center. However, now,

more than ever, is the time to share best practices and borrow from one another to

provide resources for our communities.

“Small businesses are more than just job providers; they are pillars of our

communities.”

~ North Carolina Governor Roy Cooper

Tips for Small Businesses

Make Sure That Your Business Is Safe:

➢ Follow the NC Department of Health and Human Services guidelines.

➢ Follow the Governor’s Executive Orders. NEW Executive Orders Added

o Statewide Stay at Home Order went into effect on 3/30/2020 at 5:00

p.m.

➢ Text 898211 and write COVIDNC to receive Coronavirus text alerts.

➢ Food banks have an urgent need for donations. Get or give food through a

food bank near you. www.feedthecarolinas.org

Be A Leader:

➢ Tap into resources for assistance and share with your neighboring

businesses.

State Resources

o Call Business Link North Carolina (BLNC) at 800.228.8443.

BLNC staff are available Monday through Friday, 8:30 am – 4:00 pm.

Se Habla Español. There are Spanish-speaking counselors.

▪ Call volume in BLNC is expected to be high, and callers may

need to leave a message and await a returned call. Please

be patient.

▪ BLNC counselors will gather basic information from callers and

refer the case to the most appropriate resource – small

business experts with the either the Small Business Technology

Development Center (SBTDC) or the state’s Small Business

Center Network (SBCN) -- for assistance.


▪ SBTDC and SBCN small business counselors will assess needs –

working, for example, to assist with the preparation of any U.S.

Small Business Administration (SBA) loan application materials

that may be appropriate.

o Direct employees to Unemployment Insurance System to the

following resources:

▪ The Frequently Asked Questions (FAQs) at:

https://des.nc.gov/need-help/covid-19-information

▪ Website is www.des.nc.gov and the call center is 888-737-

0259.

o NC COVID-19 Rapid Recovery Loan Program

The Golden LEAF Foundation announces $15 million in funding to

launch a rapid recovery loan program in response to economic

losses related to Coronavirus (COVID-19). Golden LEAF funding will

support the NC COVID-19 Rapid Recovery Loan Program by

enabling loans to be made to eligible businesses for up to $50,000

with zero interest and no payments for six months. If not repaid in six

months, the loan will automatically convert to a term loan. The NC

COVID-19 Rapid Recovery Loan Program

(https://ncrapidrecovery.org/) is managed by the NC Rural Center, a

statewide nonprofit that has been supporting small business owners

for more than 30 years. Read press release here.

➢ UPDATED 4/7/2020 - Register essential industries: o Businesses designated as Essential Business and Operation are listed in

the Executive Order. If your business is not listed among essential

businesses that can remain open, you may submit a request to be

considered an essential business.

▪ Businesses should submit the form online (preferred) or

email [email protected]. If you use email include

the following:

▪ Doing Business As (D/B/A, if applicable)

▪ Sales and Use Tax Registration Number (if applicable)

▪ Address

▪ Name of Contact Person

▪ Email Address

▪ Phone Number

▪ Website

▪ Description of Business

▪ Justification: Please provide a brief explanation of why your

business should be designated as essential.

Federal Resources

o Federal Disaster Loans

The U.S. Small Business Administration (SBA) is known for its flexible

and useful lending programs - especially in times of crisis. In the wake

of the coronavirus pandemic, SBA has redoubled efforts to

administer its Economic Injury Disaster Loan Program. Working with

state governors, SBA will fund low-interest loans for businesses and

non-profit organizations that have been severely impacted by the


outbreak. Loans may total up to $2 million and provide targeted,

short-term support to help borrowers compensate for revenue losses

caused by the virus. Learn more about the Disaster Loan Program at

www.sba.gov/disaster.

https://www.sba.gov/page/coronavirus-covid-19-small-business-

guidance-loan-resources

o On the Hill: Summary of Coronavirus Aid, Relief, and Economic

Security Act (CARES Act) blog post by National Trust Preservation

Leadership Forum 3/28/2020

▪ Senate Small Business Provisions

▪ Section by Section Summary of the Programs

o NEW 4/7/2020 – A Breakdown of the CARES Act - National Small

Business Town Hall by Inc. and U.S. Chamber of Commerce

➢ Federal Tax Income filing and payment deadline has been extended to

7/15/2020.

Other

➢ Research business interruption insurance and apply if you qualify.

➢ Reach out to your Main Street Organization, Chamber of Commerce,

and/or Town/City Government for technical assistance, resources, and

information.

➢ Find ways to help neighboring business owners connect and build

relationships. o Example: Ask community leaders (business, government, education,

religious, neighborhood, etc.) who are already “connectors” to help. Have

each contact five business owners, for example, and talk about how they

can get to know each other. Business owners may learn that the product or

service or helping hand they need is just down the street. They may also find

businesses that are willing to trade goods and services or delay, or even

waive, payment for them.


of COVID-19 Now

➢ Work with neighboring businesses and community leaders to brainstorm

new forms of revenue. o Example: Work with small business owners to help them identify new needs

being generated by COVID-19. Are there products or services that are and

could be in demand that existing businesses could provide, at least in the

short-term? Ask business owners to participate in brainstorming sessions with

five other businesses, for example, to discuss potential business

opportunities.


of COVID-19 Now

➢ Use this time to take some additional online business courses to come back

even stronger when you reopen. Encourage a neighboring business to take

the courses with you.

➢ If you are a property owner, try to offer free or reduced rent for business

tenants for a specified period (or defer it). Business retention is a better long-

term economic development strategy than business recruitment.


Increase Your Online Presence:

➢ Tell people if your business is open. Post its status, plans, and hours

prominently on your website, social media, in an email newsletter, etc. Also

update your Google My Business profile. If you need assistance, contact

your Main Street Organization, Chamber of Commerce, Town/City

Government, or a local technology business for help.

➢ Share the business’s commitment to protecting the health and safety of

customers, staff, etc., and steps it is taking to do so.

➢ Promote existing and new product offerings, services and experiences that

are available now or will be in the future (e.g. offer bundles items, such as

books, puzzles, art supplies, etc., that could keep homebound families

busy).

➢ Develop online shopping list services. For example, many grocery stores

offer grocery pickup or delivery to customers who submit shopping lists

online.

➢ Advertise discounts and sales for online orders.

➢ Sell gift cards for future use.

➢ Cross promote your goods and services with other businesses to increase

revenue for more than one business.

➢ Share web and social media posts from local businesses through your social

media outlets.

➢ Promote locally sourced products and local supply chains on web and

social media platforms.

➢ Offer a Frequent Buyer Discount Program for 3 purchases per week.

Offer Virtual Services:

➢ Use technology (e.g. FaceTime, Skype, Facebook Live, and others). If you

need assistance, contact your Main Street Organization, Chamber of

Commerce, Town/City Government, or a local technology business for

help.

➢ Have live, face to face, interactions/events with customers for

buying/selling, responding to inquiries, conducting meetings, etc. (e.g.

personal shopper service).

➢ Livestream educational programs, fitness training, music and art lessons,

gallery tours, cooking classes, and more.

➢ Provide virtual social activities/interactions with and between customers

(e.g. a brewery offering a virtual version of its trivia nights or a salon

previewing new trends, styles, and techniques, etc.).

➢ Conduct telemedicine, counseling, and other appointments/consultations.

Increase Communication:

➢ Write stories about your business to build a personal connection between

your business and your community.

➢ Keep your Business Top of Mind by dressing up your windows.

Offer Delivery, Pickup, and Subscription Services:

Enhance or establish services to:


➢ Allow for telephone, online, text, etc., ordering and (curbside, back door, or

other location) pickup or delivery of products such as groceries, pet

supplies, meals, etc.

➢ Partner with local delivery services or use those offered by larger businesses

such as Door Dash, Grub Hub, Uber Eats, etc.

➢ Offer free shipping for retail items as a means of increasing online sales.

➢ Become a personal shopper and offer to do the shopping for your

customers.

➢ Offer subscriptions for customers to order and have products such as meals,

produce, fresh-roasted coffee, etc., delivered according to a schedule

(e.g. “subscribe and save” discounts; coffee of the month; etc.).

Resources:

Articles

➢ Hitting the Pause Button on the Economy: Fund Small Business Relief of

COVID-19 Now – by Recast City, 03/15/2020.

➢ https://www.independentwestand.org/4-resources-small-businesses-coping-

coronavirus-outbreak/ - by Independent We Stand, 03/17/2020

➢ Marketing Your Business During Uncertainty – by Locable, 03/17/2020

➢ How to Rescue Main Street from Coronavirus Before It’s Too Late – by

Economic Innovation Group, 03/18/2020

➢ Small Business Task Force Unveils $300 Billion Emergency Coronavirus Relief

Package – by U.S. Senate Committee on Small Business & Entrepreneurship,

03/19/2020

➢ COVID-19 Pandemic: What Small Businesses Can Do – by Institute for Local

Self Reliance, 03/19/2020

➢ Online Strategies for Retailers during COVID-19 by Arnett Muldrow &

Associates

➢ Not “Business as Usual” by Buxton Co.

➢ Beyond the Coronavirus: Prepare Now by Bain & Company, 2/10/20

Agency Resources

➢ National Main Street Center - COVID-19 Main Street Resources - NEW

Resources Added

➢ National Main Street Center – COVID-19 Main Street Checklist

➢ NC Restaurant & Lodging Association – COVID-19 FAQ for Restaurant &

Hotels

➢ Resources for Small Businesses from Co Starters.

➢ Here We Grow NC by the NC League of Municipalities

➢ Best Practices for Farmers Markets – by NC State Extension

➢ COVID-19 And Food Safety FAQ by NC State Extension

➢ Guide to Conquering A Business Crisis by SBTDC

Technology

➢ Creating a YouTube channel to talk about products, tell stories about the

business, etc.

(https://support.google.com/youtube/answer/1646861?hl=en)


➢ Microsoft – Currently offering a free version of Microsoft Teams that allows

users to schedule video calls and conferences with no limit on the number

of participants.

➢ Google – Providing free access through July 1, 2020, to its advanced

Hangouts Meet video-conferencing capabilities to all G Suite and G Suite

for Education customers.

➢ ShopLoyal™ (shoployal.com) – App that allows merchants to recognize

customer loyalty by providing a higher level of customer service, VIP offers,

personalized treatment, real time two-way messaging, and more.

Merchants register with ShopLoyal and pay a monthly subscription fee to

use it. The company offers a 60-day free trial. Shoppers can download the

app for free.

➢ WooCommerce – eCommerce site that works with Wordpress to get online

sales up fast!

➢ Kabbage – Small Businesses can sign up to sell gift certificates online and

consumers can purchase them through the same site.


organizations, and many other partners for sharing information used to create this

publication.

SBA’s Disaster Declaration Makes Loans Available Due to the Coronavirus (COVID-19)

Administrator Jovita Carranza

The U.S. Small Business Administration (SBA) is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).

Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provide by the Coronavirus Preparedness and Response Supplement Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration.

U.S. Small Business -Office of Disaster Assistance-Field Operations Center - East2

What businesses are eligible to apply?SBA’s Economic Injury Disaster Loans (or working capital loans) are available to small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations

This includes:• Businesses directly affected by the disaster• Businesses that offer services directly related to the businesses

in the declaration• Other businesses indirectly related to the industry that are likely

to be harmed by losses in their community(Example: Manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product.

3

SBA’s Economic Injury Disaster Loan Basics

3U.S. Small Business -Office of Disaster Assistance-Field Operations Center - East

4

What is the criteria for a loan approval?

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

Repayment –SBA must determine that the applicant business has the ability to repay the SBA loan.

Eligibility- The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.


U.S. Small Business -Office of Disaster Assistance-Field Operations Center - East

5

How much can I borrow?

Eligible entities may qualify for loans up to $2 million.

The interest rates for this disaster are 3.75 percent for small businesses and2.75 percent for nonprofit organizations with terms up to 30 years.

Eligibility for these working capital loans are based on the size (must be asmall business) and type of business and its financial resources.

How can I use the loan funds?

These working capital loans may be used to pay fixed debts, payroll,accounts payable, and other bills that could have been paid had the disasternot occurred. The loans are not intended to replace lost sales or profits orfor expansion.

SBA’s Economic Injury Disaster Loan Terms


What are the collateral requirements?

•Economic Injury Disaster Loans over $25,000 require collateral.

•SBA takes real estate as collateral when it is available.

•SBA will not decline a loan for lack of collateral, but requires borrowers to pledge what is available.

6

Economic Injury Disaster Loan Terms


7

What kinds of small businesses can apply?

Examples of eligible industries include but are not limited to the following: hotels, recreational facilities, charter boats, manufacturers, sports vendors, owners of rental property, restaurants, retailers, souvenir shops, travel agencies, and wholesalers.


What other criteria is involved?

The applicant business must have a physical presence in the declared disaster area. An applicant’s economic presence alone in a declared area does not meet this requirement. The physical presence must be tangible and significant. Merely having a P.O. Box in the disaster area would not qualify as a physical presence.


8

SBA’s Economic Injury Disaster Loan (EIDLs) funds come directly from the U.S. Treasury.

Applicants do not go through a bank to apply. Instead apply directly to SBA’s Disaster Assistance Program at: DisasterLoan.sba.gov

There is no cost to apply.

There is no obligation to take the loan if offered.

The maximum unsecured loan amount is $25,000.

Applicants can have an existing SBA Disaster Loan and still qualify for an EIDL for this disaster, but the loans cannot be consolidated.

SBA’s Working Capital Loans are Different from Other SBA Loans


Basic Filing Requirements

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• Completed SBA loan application (SBA Form 5 or SBA Form 5C for sole proprietorships.)

• Tax Information Authorization (IRS Form 4506T)

for the applicant, principals and affiliates.

• Complete copies of the most recent Federal Income Tax Return.

• Schedule of Liabilities (SBA Form 2202).

• Personal Financial Statement (SBA Form 413).

Other Information may also be requested.

*Although a paper application and forms are acceptable, filing electronically is easier, faster and more accurate.


Additional Filing Requirements

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Other information that may be requested:• Complete copy, including all schedules, of the most recent Federal

income tax return for principals, general partners or managing member, and affiliates (see filing requirements for more information).

• If the most recent Federal income tax return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year .

• A current year-to-date profit-and-loss statement .

• Additional Filing Requirements (SBA Form 1368) providing monthly sales figures. (This is especially important for Economic Injury Disaster Loans.)



Private Non-Profit Organizations

Examples of Non-Profit Organizations: Nursing homes, food kitchens,museums, educational facilities, senior citizen centers, daycare centers,playhouses, community centers, shelters, rescue organizations, associations,etc.

An eligible private non-profit organization is a non-governmental agency orentity that currently has:(1) An effective ruling letter from the U.S. Internal Revenue Service, grantingtax exemption under sections 501(c), (d), or (e) of the Internal Revenue Codeof 1954, or(2) Satisfactory evidence from the State that the non-revenue producingorganization or entity is a non-profit one organized or doing business underState law.


Private Non-Profit Organizations

1. Articles of Incorporation* 2. By-Laws 3. Charter, if applicable 4. Board of Directors Resolution giving approval to apply to the SBA for disaster loan. (This requirement may be provided subsequent to the offer of a loan). 5. Complete copies of the organization’s most recent non-profit tax returns OR a copy of the organization’s IRS tax-exempt certification and complete copies of the organization’s three most recent years operating results. 6. A current Balance Sheet and Operating Statement dated within 90 days of the application. 7. Name and address of all officers, trustees, and directors 8. Organization affiliation, if any. 9. Name, address, and phone numbers of all insurance companies providing coverage at the date of the disaster along with all policy numbers, copies of policy coverage pages and recovery settlements to date, if any 10. Specifics of all disaster related grants and/or funds received from FEMA

*If incorporated Additional Information needed for Churches 1. Complete copies of organization’s most recent non-profit tax returns (or a copy of the exempt filing form showing 501(c)(3) status) and complete copies of the organization’s three most recent year’s income statements.

Additional Information for Condo and Other Owner Associations 1. Complete copy of any Declaration of Condominium, Association, or Easement 2. Complete copy of association Conditions, Covenants, and Restrictions (CC&R’s) 3. Master deed for common areas containing area legal description unless legal description is included within above documents4. List of names and addresses for all unit owners 5. Complete copy of the master insurance policies in effect as of the date of the disaster along with copies of recovery settlement information received to date. 6. Documentation of any special assessments approved by the organization related to disaster repairs.

SBA DISASTER LOAN DOCUMENTATION REQUIREMENTS Non-Profit Organizations, Churches and Associations

Ineligible EntitiesWhat are some of the businesses that are ineligible for an Economic Injury Disaster Loan?

• Agricultural Enterprises -If the primary activity of the business (including its affiliates) is as defined in Section 18(b)(1) of the Small Business Act, neither the business nor its affiliates are eligible for EIDL assistance.

• Religious Organizations

• Charitable Organizations, businesses considered hobbies, government-owned concerns.

• Gambling Concerns (Ex: Concerns that derive more that 1/3 of their annual gross revenue from legal gambling activities)

• Casinos & Racetracks (Ex: Businesses whose purpose for being is gambling (e.g., casinos, racetracks, poker parlors, etc.) are not eligible for EIDL assistance regardless of 1/3 criteria above.

• Real estate developers-establishments primarily engaged in subdividing real property into lots and developing it for resale on their own account.


How to Apply

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• Applicants may apply online using the Electronic Loan Application (ELA) viaSBA’s secure website at https://disasterloan.sba.gov/ela.

• Paper loan applications can be downloaded from www.sba.gov/disaster.Completed applications should be mailed to: U.S. Small BusinessAdministration, Processing and Disbursement Center, 14925 KingsportRoad, Fort Worth, TX 76155.

• Disaster loan information and application forms may also be obtained bycalling the SBA’s Customer Service Center at 800-659-2955(800-877-8339 for the deaf and hard-of-hearing) or by sending an email [email protected].


SBA’s Customer Service Representatives are ready to serve.

How to Apply

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Enclosed are the application forms and the NC Economic Injury Disaster Loan (EIDL) Fact Sheet for basic information about the program. Please start with the fact sheet (last enclosure) to familiarize yourself with the program. All forms requiring a signature must be signed and dated. Incomplete applications will not be accepted. When complete, you may send your application by opting for one of the following:

Email to: [email protected]

Fax to: 202-481-1505

Mail hard copies to:U.S. Small Business AdministrationProcessing and Disbursement Center14925 Kingsport Rd.Ft. Worth, TX 76155-2243

For application questions, please call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] .


SBA’s Customer Service Representatives are ready to serve.

Assistance From SBA Partners

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Free assistance with reconstructing financial records, preparingfinancial statements and submitting the loan application is availablefrom any of SBA’s partners: Small Business Development Centers(SBDCs), SCORE, Women’s Business Centers (WBC), and Veteran’sBusiness Outreach Centers and local Chambers of Commerce.

For the nearest office, visit: https://www.sba.gov/local-assistance


Assistance From SBA Partners

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The following SBA backed organizations provide assistance to small businesses in the state of North Carolina; email and phone counseling are available.

Small Business and Technology and Development Center (SBTDC): http://www.sbtdc.org/

SCORE: https://www.score.org/

Veterans Business Outreach Center: https://www.fsuvboc.com/

Women’s Business Centers:

Asheville area: https://www.wwbcnc.org/Charlotte area: https://theinstitutenc.org/programs/wbcc/Fayetteville area: https://www.wbcfay.org/Raleigh-Durham area: https://theinstitutenc.org/programs/womens-business-center-of-north-carolina/


For Help Filling out the SBA Disaster Loan Application

Submit Your Application As Soon As Possible

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Recheck the filing requirements to ensure that all the neededinformation is submitted.

The biggest reason for delays in processing is due to missinginformation. Make sure to complete all filing requirements beforesubmitting the application and forms.

If more funds are needed, applicants can submit supportingdocuments and a request for an increase. If less funds areneeded, applicants can request a reduction in the loan amount.

If the loan request is denied, the applicant will be given up to sixmonths in which to provide new information and submit a writtenrequest for reconsideration.


Any Questions?

More information concerningSBA and its programs visit our website at:

www.sba.gov/disaster19


As of April 6, 2020

PAYCHECK PROTECTION PROGRAM LOANS Frequently Asked Questions (FAQs)

The Small Business Administration (SBA), in consultation with the Department of the Treasury, intends to provide timely additional guidance to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP), established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). This document will be updated on a regular basis. Borrowers and lenders may rely on the guidance provided in this document as SBA’s interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rule (“PPP Interim Final Rule”) (link). The U.S. government will not challenge lender PPP actions that conform to this guidance,1 and to the PPP Interim Final Rule and any subsequent rulemaking in effect at the time.

1. Question: Paragraph 3.b.iii of the Paycheck Protection Program Interim Final Rule states that lenders must “[c]onfirm the dollar amount of average monthly payroll costs for the preceding calendar year by reviewing the payroll documentation submitted with the borrower’s application.” Does that require that the lender replicate every borrower’s calculations? Answer: No. Providing an accurate calculation of payroll costs is the responsibility of the borrower, and the borrower must attest to the accuracy of those calculations. Lenders are expected to perform a good faith review, in a reasonable time, of the borrower’s calculations and supporting documents concerning average monthly payroll cost. The level of diligence by a lender should be informed by the quality of supporting documents supplied by the borrower. Minimal review of calculations based on a payroll report by a recognized third-party payroll processor, for example, would be reasonable.

If lenders identify errors in the borrower’s calculation or material lack of substantiation in the borrower’s supporting documents, the lender should work with the borrower to remedy the error.

2. Question: Are small business concerns (as defined in section 3 of the Small Business Act, 15 U.S.C. 632) required to have 500 or fewer employees to be eligible borrowers in the PPP?

Answer: No. Small business concerns can be eligible borrowers even if they have more than 500 employees, as long as they satisfy the existing statutory and regulatory definition of a “small business concern” under section 3 of the Small Business Act, 15 U.S.C. 632. A business can qualify if it meets the SBA employee-based or revenue-

1 This document does not carry the force and effect of law independent of the statute and regulations on which it is based.

As of April 6, 2020

based size standard corresponding to its primary industry. Go to www.sba.gov/size for the industry size standards.

Additionally, a business can qualify for the Paycheck Protection Program as a small business concern if it met both tests in SBA’s “alternative size standard” as of March 27, 2020: (1) maximum tangible net worth of the business is not more than $15 million; and (2) the average net income after Federal income taxes (excluding any carry-over losses) of the business for the two full fiscal years before the date of the application is not more than $5 million.

A business that qualifies as a small business concern under section 3 of the Small Business Act, 15 U.S.C. 632, may truthfully attest to its eligibility for PPP loans on the Borrower Application Form, unless otherwise ineligible.

3. Question: Does my business have to qualify as a small business concern (as defined in section 3 of the Small Business Act, 15 U.S.C. 632) in order to participate in the PPP? Answer: No. In addition to small business concerns, a business is eligible for a PPP loan if the business has 500 or fewer employees whose principal place of residence is in the United States, or the business meets the SBA employee-based size standards for the industry in which it operates (if applicable). Similarly, PPP loans are also available for qualifying tax-exempt nonprofit organizations described in section 501(c)(3) of the Internal Revenue Code (IRC), tax-exempt veterans organization described in section 501(c)(19) of the IRC, and Tribal business concerns described in section 31(b)(2)(C) of the Small Business Act that have 500 or fewer employees whose principal place of residence is in the United States, or meet the SBA employee-based size standards for the industry in which they operate.

4. Question: Are lenders required to make an independent determination regarding applicability of affiliation rules under 13 C.F.R. 121.301(f) to borrowers? Answer: No. It is the responsibility of the borrower to determine which entities (if any) are its affiliates and determine the employee headcount of the borrower and its affiliates. Lenders are permitted to rely on borrowers’ certifications.

5. Question: Are borrowers required to apply SBA’s affiliation rules under 13 C.F.R. 121.301(f)? Answer: Yes. Borrowers must apply the affiliation rules set forth in SBA’s Interim Final Rule on Affiliation. A borrower must certify on the Borrower Application Form that the borrower is eligible to receive a PPP loan, and that certification means that the borrower is a small business concern as defined in section 3 of the Small Business Act (15 U.S.C. 632), meets the applicable SBA employee-based or revenue-based size standard, or meets the tests in SBA’s alternative size standard, after applying the affiliation rules, if applicable. SBA’s existing affiliation exclusions apply to the PPP, including, for example the exclusions under 13 CFR 121.103(b)(2).

As of April 6, 2020

6. Question: The affiliation rule based on ownership (13 C.F.R. 121.301(f)(1)) states that

SBA will deem a minority shareholder in a business to control the business if the shareholder has the right to prevent a quorum or otherwise block action by the board of directors or shareholders. If a minority shareholder irrevocably gives up those rights, is it still considered to be an affiliate of the business? Answer: No. If a minority shareholder in a business irrevocably waives or relinquishes any existing rights specified in 13 C.F.R. 121.301(f)(1), the minority shareholder would no longer be an affiliate of the business (assuming no other relationship that triggers the affiliation rules).

7. Question: The CARES Act excludes from the definition of payroll costs any employee compensation in excess of an annual salary of $100,000. Does that exclusion apply to all employee benefits of monetary value? Answer: No. The exclusion of compensation in excess of $100,000 annually applies only to cash compensation, not to non-cash benefits, including:

employer contributions to defined-benefit or defined-contribution retirement plans;

payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums; and

payment of state and local taxes assessed on compensation of employees.

8. Question: Do PPP loans cover paid sick leave? Answer: Yes. PPP loans covers payroll costs, including costs for employee vacation, parental, family, medical, and sick leave. However, the CARES Act excludes qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127). Learn more about the Paid Sick Leave Refundable Credit here.

9. Question: My small business is a seasonal business whose activity increases from April to June. Considering activity from that period would be a more accurate reflection of my business’s operations. However, my small business was not fully ramped up on February 15, 2020. Am I still eligible?

Answer: In evaluating a borrower’s eligibility, a lender may consider whether a seasonal borrower was in operation on February 15, 2020 or for an 8-week period between February 15, 2019 and June 30, 2019.

10. Question: What if an eligible borrower contracts with a third-party payer such as a payroll provider or a Professional Employer Organization (PEO) to process payroll and report payroll taxes?

Answer: SBA recognizes that eligible borrowers that use PEOs or similar payroll providers are required under some state registration laws to report wage and other data on

As of April 6, 2020

the Employer Identification Number (EIN) of the PEO or other payroll provider. In these cases, payroll documentation provided by the payroll provider that indicates the amount of wages and payroll taxes reported to the IRS by the payroll provider for the borrower’s employees will be considered acceptable PPP loan payroll documentation. Relevant information from a Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers, attached to the PEO’s or other payroll provider’s Form 941, Employer’s Quarterly Federal Tax Return, should be used if it is available; otherwise, the eligible borrower should obtain a statement from the payroll provider documenting the amount of wages and payroll taxes. In addition, employees of the eligible borrower will not be considered employees of the eligible borrower’s payroll provider or PEO.

11. Question: May lenders accept signatures from a single individual who is authorized to sign on behalf of the borrower?

Answer: Yes. However, the borrower should bear in mind that, as the Borrower Application Form indicates, only an authorized representative of the business seeking a loan may sign on behalf of the business. An individual’s signature as an “Authorized Representative of Applicant” is a representation to the lender and to the U.S. government that the signer is authorized to make the certifications, including with respect to the applicant and each owner of 20% or more of the applicant’s equity, contained in the Borrower Application Form. Lenders may rely on that representation and accept a single individual’s signature on that basis.

12. Question: I need to request a loan to support my small business operations in light of current economic uncertainty. However, I pleaded guilty to a felony crime a very long time ago. Am I still eligible for the PPP? Answer: Yes. Businesses are only ineligible if an owner of 20 percent or more of the equity of the applicant is presently incarcerated, on probation, on parole; subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or, within the last five years, for any felony, has been convicted; pleaded guilty; pleaded nolo contendere; been placed on pretrial diversion; or been placed on any form of parole or probation (including probation before judgment).

13. Question: Are lenders permitted to use their own online portals and an electronic form that they create to collect the same information and certifications as in the Borrower Application Form, in order to complete implementation of their online portals?

Answer: Yes. Lenders may use their own online systems and a form they establish that asks for the same information (using the same language) as the Borrower Application Form. Lenders are still required to send the data to SBA using SBA’s interface.

14. Question: What time period should borrowers use to determine their number of employees and payroll costs to calculate their maximum loan amounts?

As of April 6, 2020

Answer: In general, borrowers can calculate their aggregate payroll costs using data either from the previous 12 months or from calendar year 2019. For seasonal businesses, the applicant may use average monthly payroll for the period between February 15, 2019, or March 1, 2019, and June 30, 2019. An applicant that was not in business from February 15, 2019 to June 30, 2019 may use the average monthly payroll costs for the period January 1, 2020 through February 29, 2020.

Borrowers may use their average employment over the same time periods to determine their number of employees, for the purposes of applying an employee-based size standard. Alternatively, borrowers may elect to use SBA’s usual calculation: the average number of employees per pay period in the 12 completed calendar months prior to the date of the loan application (or the average number of employees for each of the pay periods that the business has been operational, if it has not been operational for 12 months).

15. Question: Should payments that an eligible borrower made to an independent contractor or sole proprietor be included in calculations of the eligible borrower’s payroll costs?

Answer: No. Any amounts that an eligible borrower has paid to an independent contractor or sole proprietor should be excluded from the eligible business’s payroll costs. However, an independent contractor or sole proprietor will itself be eligible for a loan under the PPP, if it satisfies the applicable requirements.

16. Question: How should a borrower account for federal taxes when determining its payroll costs for purposes of the maximum loan amount, allowable uses of a PPP loan, and the amount of a loan that may be forgiven?

Answer: Under the Act, payroll costs are calculated on a gross basis without regard to (i.e., not including subtractions or additions based on) federal taxes imposed or withheld, such as the employee’s and employer’s share of Federal Insurance Contributions Act (FICA) and income taxes required to be withheld from employees. As a result, payroll costs are not reduced by taxes imposed on an employee and required to be withheld by the employer, but payroll costs do not include the employer’s share of payroll tax. For example, an employee who earned $4,000 per month in gross wages, from which $500 in federal taxes was withheld, would count as $4,000 in payroll costs. The employee would receive $3,500, and $500 would be paid to the federal government. However, the employer-side federal payroll taxes imposed on the $4,000 in wages are excluded from payroll costs under the statute.2

2 The definition of “payroll costs” in the CARES Act, 15 U.S.C. 636(a)(36)(A)(viii), excludes “taxes imposed or withheld under chapters 21, 22, or 24 of the Internal Revenue Code of 1986 during the covered period,” defined as February 15, 2020, to June 30, 2020. As described above, the SBA interprets this statutory exclusion to mean that payroll costs are calculated on a gross basis, without subtracting federal taxes that are imposed on the employee or withheld from employee wages. Unlike employer-side payroll taxes, such employee-side taxes are ordinarily expressed as a reduction in employee take-home pay; their exclusion from the definition of payroll costs means payroll costs should not be reduced based on taxes imposed on the employee or withheld from employee wages. This interpretation is consistent with the text of the statute and advances the legislative purpose of ensuring workers

As of April 6, 2020

17. Question: I filed or approved a loan application based on the version of the PPP Interim Final Rule published on April 2, 2020. Do I need to take any action based on the updated guidance in these FAQs?

Answer: No. Borrowers and lenders may rely on the laws, rules, and guidance available at the time of the relevant application. However, borrowers whose previously submitted loan applications have not yet been processed may revise their applications based on clarifications reflected in these FAQs.

18. Question: Are PPP loans for existing customers considered new accounts for FinCEN Rule CDD purposes? Are lenders required to collect, certify, or verify beneficial ownership information in accordance with the rule requirements for existing customers? Answer: If the PPP loan is being made to an existing customer and the necessary information was previously verified, you do not need to re-verify the information. Furthermore, if federally insured depository institutions and federally insured credit unions eligible to participate in the PPP program have not yet collected beneficial ownership information on existing customers, such institutions do not need to collect and verify beneficial ownership information for those customers applying for new PPP loans, unless otherwise indicated by the lender’s risk-based approach to BSA compliance.

remain paid and employed. Further, because the reference period for determining a borrower’s maximum loan amount will largely or entirely precede the period from February 15, 2020, to June 30, 2020, and the period during which borrowers will be subject to the restrictions on allowable uses of the loans may extend beyond that period, for purposes of the determination of allowable uses of loans and the amount of loan forgiveness, this statutory exclusion will apply with respect to such taxes imposed or withheld at any time, not only during such period.

SMALL BUSINESSES NEED CUSTOMERS! TIPS TO SUPPORT THE …€¦ · businesses and communities in the recovery process.” ~ Patrice Frey, President and CEO of the National Main Street

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