ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
Hawaii IPA
2
COVID 19 Financial Resource Guide
3
Updated 1/21/2021
4
5
Source of ReliefApplication Start Date
6
Name of Program
Urgency
DistributorAmountTermsStructureCollateral/FeesDocumentation RequiredEligibilityOther Conditions/termsOther Notes
7
Second Round of PPP LoanSBALocal banks/SBA Lenders
Recommended to use bank you received first PPP and/or bank you currently have an account with
2.5 - 3.5x average monthly payroll cost not to exceed caps below
* If this PPP is your first PPP loan: $10M cap
* For second PPP loans: $2M cap, not to exceed $10M when combined with first loan taken
* Like round one, borrower must spend at least 60% of funds on payroll; 40% on other eligible costs like rent, PPE, etc.
* Still need to personally attest that you need the loan to sustain business; even if meet decrease in revenue requirements
All applications processedOpenNone*2019 and 2020 Financial statements (e.g., 4 quarters of 941s, third-party payroll processor report). Note: for existing PPP loan customers, you will be required to submit financial information even if you provided it for your first PPP loan.
* Gross excise tax payments should be current
* Your business name should match the legal business name as it is registered with the Hawaii State Department of Consumer and Commerce Affairs (DCCA)
* In compliance and good standing for your business registration with the DCCA
* In compliance and good standing with the U.S. Department of Treasury
* <300 employees
* Show a 25% reduction in gross receipts in at least one quarter of 2020 (compared to 2019) or a 25% decrease in entire year
* Businesses: profits or non-profits; self-employed
* Loans are now tax deductible
* Your choice in covered period: 8-24 weeks
If you haven’t applied yet for forgiveness for the first round, you can still apply for the second round; the two will be treated separately aside from the caps
8
Economic Injury Disaster LoanSBAMaximum: $15,000 (recent change as of 4/9/2020)Terms are determined on a case-by-case basis, based upon borrower’s ability to repay
*Interest rate is 3.75% for small businesses
*Interest rate for non-profits is 2.75%
*First payment deferred a year
All applications processedOpenLoans of less than $200k do not require personal guaranteeTax return, schedule of liabilities, forecasted impact on business operations501(c)(3) with over 500 employees are NOT eligible. Business with over $12m in receipts NOT eligibleIf applying for Paycheck Protection Program, make sure and specific that these EIDL funds are to be used for different purposes than the PPP funds (avoiding “duplicative purpose” loans)Can receive an advance (See Economic Injury Disaster Advance Loan)
9
Debt Relief ProgramSBASBAAll loan payments on SBA loans issued prior to Sept 27th, 2020Applies to SBA 7(a), 504, and Microloan programsAll applications processedOpenNoneDocumentation of existing SBA loansRequires existing SBA loanDoes not apply to PPP. Useful for those that already have existing loans with SBA only.
10
Express Bridge LoanSBALocal banks and lenders with valid SBA Form 2424, as SBA Express Lenders, or “Supplemental Loan Guaranty Agreement SBA Express Program”Maximum $25,000Up to 6.5% over Prime rate, regardless of maturityAll applications processedOpenNo collateral, up to 5% late payment fee, lender may charge a 2% application fee or $250, whichever is greaterLenders need only consider:
*Credit score
*Tax transcripts
*Existing banking relationship
501(c)(3) with over 500 employees are NOT eligible. Business with over $12m in receipts NOT eligible*Loan must be “to support survival/reopening of business”
*Lender may require EBL borrower to pay the loan in part or full if borrower is approved for long-term disaster financing (including an SBA Disaster Loan)
*Demonstrate an operating business as of March 13, and adverse impact
These loans can be used as a stop-gap while you wait for larger Economic Injury Disaster Loans (EIDL), which can then be used to repay the EBL. Because EIDL Advance has been expedited, perhaps these are LOW PRIORITY
11
SBA 7(a)SBALocal banks/SBA lendersUp to $5mAll applications processedOpen501(c)(3) with over 500 employees are NOT eligible. Business with over $12m in receipts NOT eligible*Existing loan program upon which PPP is structured (and supersedes)
*Combine with Debt Relief Program for PPP lookalike, if partner already has this loan
12
PPP Loan Forgiveness Application SBALocal PPP lendersFull amout of PPP loan.Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. Open until maturity date for PPP loanNoneDocumentation of PPP loanBusinesses with with PPP loans not yet matured.Application instructions and application form
13
Tax Credits Available
14
Employee Retention CreditTax Creditrefundable credit for 50% of qualifying wages up to $10,000 per employee; businesses who had operations fully or partially suspended due to a COVID-19 related shutdown order or experience a 50% drop in gross receipts relative to the same quarter last year may qualify.
15
Delay of payment of employer payroll taxesTax Creditallows employers to defer payment of the employer share of the Social Security tax they otherwise are responsible for paying with respect to their employees. The deferred tax must be paid over the following two years.
16
Net Operating LossesTax CreditNOL arising in tax years 2018, 2019, 2020 will be able to be carried back five years and can fully offset income. These changes will allow companies to utilize losses and amend prior year returns, which will provide critical cash flow and liquidity
17
Delay for Single Employer Pension PlansTax CreditSingle employer pension plans are allowed to delay quarterly contributions for 2020 until the end of the year. Employers may also use 2019 funded status for the purposes of determining funding-based limits on plan benefits for the plan years that include 2020.
18
NO LONGER ACTIVE
19
Kokua Maui Recovery & Relief FundHighReimbursement ProgramLocal FCUs: Maui County, Maui, Valley Isle, Kahului, Wailuku, Maui TeachersMaximum $7,500. $3,750 for those who received Maui Chamber of Commerce Micro Business Loans.This is a REIMBURSEMENT program; proof of payment required: receipts, cancelled check, or other proof of payment needed (an unpaid invoice is not proof of payment and does not qualify; taxes other than sales tax on purchases are not reimbursableAll applications processed8/3/20 - 10/31/20, based on availability of funds
closed
NoneHI GET number, active business name registered with the DCCA, 2019 tax returns or 2019 annual GET reconcilation, completed expense workbook:
* Rent/lease reimbursement - copy of lease agreement & cancelled checks (front & bac)
*Utility reimbursement - copy of statements and proof of payment
*COVID-19 safety precautions - itemized workbook with supporting documents
* W-9
*Attestation form
Maui commercial/industrial businesses. Active registered Business Name. Business established prior to 3/20/19. Business with $2 million or less in annual gross revenue.ONE TIME reimbursementApplications must be complete online. You cannot walk into the FCU's to apply. The fund covers reimbursable business expenses limited to rent/lease payments, utility payments and COVID-19-related safety precautions at the place of business.
20
Small Business Relief and Recovery Fund (SBRRF)HighReimbursement ProgramLocal Oahu FCUs:
Aloha Pacific: 531-3711
Hawaiian Financial: 322-8700
HawaiiUSA: 844-8995
Up to $20,000 for gross annual revenue <$2M. Up to $30,000 for annual revenue $2M-$3M. Up to $40,000 for annual revenue $3M-$4M. Up to $50,000 for annual revenue $4M-$5M. Businesses that received grants under this program previously can reapply for up to the total eligible amount, minus the amount previously recieved.This is a REIMBURSEMENT program; proof of payment required: receipts, cancelled check, or other proof of payment needed (an unpaid invoice is not proof of payment and does not qualify; taxes other than sales tax on purchases are not reimbursableAll applications processedclosedNoneActive business name registered with the DCCA, address, Tax ID, registered owner name, contact info, detailed description of buisness, revenue level for 2019 including 2019 tax return or 2019 Schedule C or annual GET reconciliation, detailed statement on how business affected by COVID, W-9, amount of funds requested with clear copies of receipt/proof of paymentEligible business types:
a. Businesses registered with the Hawaii Department of Commerce and Consumer Affairs and sole proprietors
b. Non-profit organizations registered with the Hawaii Department of Commerce and Consumer Affairs and designated as tax-exempt under section 501(c)(3) or 501(c)(19) c. Must have physical commercial space.
ONE TIME reimbursementYou can apply with the credit union according to your last four digits of your GE number. The business must certify that if it received CARES Act funds such as the Paycheck Protection Program (PPP) or the Economic Injury Disaster Loan Program (EIDL), these funds were not used for expenses in this grant application. Applications for small businesses with between $2 million and $5 million in annual revenue will open Thursday, October 1.
21
Small Business Relief and Recovery Fund (SBRRF) Additional FundsReimbursement ProgramLocal Oahu FCUs:
Aloha Pacific: 531-3711
Hawaiian Financial: 322-8700
HawaiiUSA: 844-8995
Up to $20,000. Businesses that received grants under this program previously can reapply for up to $20,000, less the
amount previously received
This is a REIMBURSEMENT program; proof of payment required: receipts, cancelled check, or other proof of payment needed (an unpaid invoice is not proof of payment and does not qualify; taxes other than sales tax on purchases are not reimbursableAll applications processedclosedNoneActive business name registered with the DCCA, address, Tax ID, registered owner name, contact info, detailed description of buisness, revenue level for 2019 including 2019 tax return or 2019 Schedule C or annual GET reconciliation, detailed statement on how business affected by COVID, W-9, amount of funds requested with clear copies of receipt/proof of payment$2 million-$5 million in annual revenue. Eligible business types:
a. Businesses registered with the Hawaii Department of Commerce and Consumer Affairs and sole proprietors
b. Non-profit organizations registered with the Hawaii Department of Commerce and Consumer Affairs and designated as tax-exempt under section 501(c)(3) or 501(c)(19)
ONE TIME reimbursementYou can apply with the credit union according to your last four digits of your GE number. The business must certify that if it received CARES Act funds such as the Paycheck Protection Program (PPP) or the Economic Injury Disaster Loan Program (EIDL), these funds were not used for expenses in this grant application.
22
Hawaii Business Pivot GrantHighReimbursement ProgramChamber of Congress HawaiiGrants of up to $10,000, business with less than 100 employees, that have been in business prior to March 20, 2020. This is a REIMBURSEMENT program; proof of payment required. Expenses related to pivoting or adjusting the company, its operations, products, services, or related items to meet the new economic environment. The expenses must be directly related to, and necessary for, the purposes of the Hawaii Business Pivot Grant programFirst come, first serve10/22/20 - 11/23/20
closed
NoneW-9, Certificate of Good Standing or General Excise License, Form 941 or the most recent payroll register, if an owned business space- property tax bill, if leased business space- business address AND the signature page(s) of your lease, voided check, and receipts, paid invoice, or credit card statement and verification of payment for all submitted expensePhysically based Hawaii business with less than 100 employees, that have been in business prior to March 20, 2020.ONE TIME reimbursementGrant also provides: technical assistance, workshops and training, and an online marketplace to access products and services to assist in transforming operations. For more info: https://www.hawaiibizpivot.org/apply/
23
Economic Injury Disaster Advance LoanHighSBASBAMaximum: $10kNone, if used for business expenses such as payrollAll applications processed. Expect delays due to volume - apply ASAPNo longer availableNoneGross revenue and cost of goods sold for 12 months prior to Jan 31, compensation from other sources for COVID 19501(c)(3) with over 500 employees are NOT eligible. Business with over $12m in receipts NOT eligibleNoneDo not have to qualify for EIDL to receive this loan under these conditions. A "loan advance" that does not have to be repaid.
24
Paycheck Protection ProgramHighSBALocal banks/SBA lendersMaximum loan is 2.5x year 2019 average monthly payroll cost, up to $10m. Include physician pay (if can substatiate via payroll, 1099s, or sole proprietor tax forms; excludes company draws). Recommend requesting full loan amount. Unforgiven loan amounts become conventional loans with a 1% fixed interest rate, with payments deferred for 6 monthsFirst-come, first-serveApplications open again with new round of funding, processing already submitted apps first; 4/3/2020, 1099 applications begin 4/10/20, closed 8/8/20NoneIRS Form 941 Employers Quarterly Tax Returns for 2019
IRS Form 1099 MISC: 2019
If you do not have the above; other payroll documentation including payroll schedule or reports from CPA, bookkeeper, or payroll provider for last 15 months
501(c)(3) with over 500 employees are NOT eligible. Business with over $12m in receipts NOT eligible*Loan forgiveness for $ spent in first 8 weeks on payroll, rent, mortgage interest, utilities
*Any portion of the loan not forgiven will turn into a conventional loan with a 1% fixed interest rate, with payments deferred for 6 months
Must be no reduction in staffing and wages above 25%. Leverage existing relationships with bankers to get access to loans, as they are in very high demand.
25
Public Health and Social Services Emergency Fund
If you received these funds, please ensure you submitted your attesation at https://covid19.linkhealth.com/#/step/1
HighCARESCMSBased on Medicare FFS SpendingGrant format; do not need to repayDeposited direct to bank account if you have direct deposit set up with Medicare; otherwise will need to submit a registration form which has not yet been released as of 4/10/2020Funds being disbursed starting 4/9/2020
closed
Grant formatImportant: healthcare providers should continue to quantify and monitor all COVID-10 expenses and retain copies of all relevant documents and reports, including records related to treatment of uninsured individuals for COVID-19 in case there are additional opportuntiies. Useful to start estimating lost revenue from: cancelling elective procedures across all patient care venues; clearing the schedule for a surge and/or minimizing community spread. Consider not only lost revenue from downtime/lower volumes while getting ready, but also lost revenue/operating margin impact (even if full to overflowing due to surge) from replacing higher margin service lines with lower margin services. Be prepared to project, track and ID various components.Hospitals and providersTBD
26
Second Round of PHSSEF Fund; ACTION REQUIRED
See above re: attestation
HighCARESCMSSee Application Guide4/24/2020
closed
Grant formatSee applicationHealthcare Providers
27
Accelerated Medicare Payments
This program has been suspended and is no longer accepting applications
HighCMSCMSUp to 100% of the Medicare
payment amount for a three-month period
CMS has extended the repayment of these accelerated/ advance payments to begin 120 days after the date of issuance of the paymentclosedAccelerated/Advance Payment Request forms vary by contractor and can be found on each individual MAC’s websiteHospitals (6mo rather than 3) and providers. Up to 125% for Critical Access HospitalsProviders paid within 7 days. Expediting payments that will be owed. No new money, revenue will decline after 120 days to repay. Note this may expose partner to cash flow risk if COVID 19 worsens next fall
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100