Tag Archives: Small Business Owners

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Phishing Scam Targeting EIDL Loan Repayment

Attention Small Business Owners: Beware of Phishing Scam Targeting EIDL Loan Repayment

Small Business Scam Alert: Tips to Avoid EIDL Loan Repayment Scams, Tom Martin Coaching: Empowering Business Owners to prosper in business and thrive in life

Small businesses are currently under threat from a phishing scam aimed at collecting banking information and payments in exchange for a fake “SBDC Economic Injury Disaster Grant.”

This fraudulent email originates from: “apply@smallbusinessdevelopmentcenter.online” falsely claiming approval for a grant, but demanding a “tax clearance fee.” 🚨

It’s crucial to note that neither your local SBDC nor the US SBDC provides SBA grants or loans. The SBDC will never solicit your banking details or ask for payment for a grant or loan… ever!!

To safeguard your business from online threats, consider these essential tips recommended by the FTC:

✅ What to DO:

  • Obtain information regarding SBA loans directly from the official SBA website: sba.gov.
  • Seek guidance from your local UGA SBDC office if you receive a suspicious email: georgiasbdc.org/locations.

❌ What NOT to Do:

  • Pay upfront for information; all SBA grant and loan program details are freely accessible at sba.gov.
  • Provide payment in advance for a government grant or loan; no upfront payment is necessary for an SBA loan.
  • Disclose your information to unsolicited callers, emails, or texts. The SBA does not initiate contact to request information about you or your business, nor does it ask you to apply for a loan via phone, email, or text. Delete any suspicious emails or texts immediately.
  • Apply for a loan without verifying the lender’s authenticity. Only SBA-authorized lenders can offer loans, and you can verify lenders using the SBA’s tool.
  • Click on links or respond to emails or texts from unknown sources. Clicking on such links may expose your device to malware or connect you with scammers.

Stay vigilant and protect your business from potential scams by adhering to these guidelines.

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Covid-19 Relief Initiatives for Georgia Business Owners

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There seems to be optimism in the air with news of the number of coronavirus cases falling and greater access to vaccines.

Unfortunately for many people this is still a difficult time, especially a high percentage of small business owners who faced a disruption of epic proportions to their businesses. 

Here are the latest Covid-19 relief initiatives available to small business owners in Roswell Georgia and the surrounding counties. 

Roswell Georgia Business Owners… 

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During the February 22nd city council meeting, the mayor and city council members approved the COVID-19 Relief Assistance Program for residents and small business owners who have experienced financial hardships as a result of the COVID-19 pandemic.

The program will help residents in need to pay living expenses like mortgage/rent, utilities and childcare. It also supports local brick-and-mortar businesses struggling to stay afloat due to the pandemic.

The city has allocated $800,000 to this program — $400,000 is available to residents in need of assistance, and $400,000 is available to Roswell small businesses. To qualify, applicants must meet specific criteria.

These Grants Do Not Have to Be Paid Back to the City!

Residents and business owners will be able to apply during the open application periods for each program by visiting www.RoswellGov.com. 

For business owners there is a short window of time to apply. And the application period for the Small Business Relief Assistance Program will open March 8 and continue through March 22, 2021.

Metro Atlanta Counties…

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Comcast Rise is a commitment to support small businesses who have been hit the hardest by the economic impact of the pandemic. The Comcast RISE Investment Fund provides monetary grants to help Black, Indigenous and People of Color (BIPOC)-owned, small businesses grow as they navigate the challenges of the pandemic.

Open to businesses in Atlanta, GA (Cobb, Clayton, DeKalb, Fulton, and Gwinnett Counties) 100 small businesses will receive a $10,000 monetary grant. The application period is March 1-14, 2021.

More details can be found here: https://www.comcastrise.com/

Is PPP3 for Me?

In order to reach the smallest businesses, SBA will offer Paycheck Protection Program loans to businesses with fewer than 20 employees and sole proprietors only from Wednesday, February 24 through Tuesday, March 9, 2021

The latest round of Paycheck Protection Program (PPP) funding represents a marked improvement compared to the prior round.

  • The share of funding going to small businesses with fewer than ten employees is up nearly 60%
  • The share of funding going to small businesses in rural areas is up nearly 30%

Remember the deadline to apply is March 9, 2021. So, if you’re planning on moving forward here are two actions to take today!

  1. Find a lender:
  2. Identify a loan:
    • First Draw PPP Loans: If you have not received a PPP loan before, First Draw PPP Loans are available to you.
    • Second Draw PPP Loans: If you have previously received a PPP loan, certain businesses are eligible for a Second Draw PPP Loan.

Additional information, tools, and COVID-19 related resources can be found using the following links:

SBA Coronavirus Relief Options – Comprehensive list includes:

  • Payroll Protection Plan (PPP)
  • Covid-19 Economic Injury Disaster Loan (EIDL)
  • Shuttered Venue Operators Grant Program (SVO GP)
  • SBA Express Bridge Loan
  • SBA Debt Relief
  • Cross Program Eligibility

Georgia Chamber of Commerce – Scroll to the bottom of the page for a list of programs and safe workplace recommendations.

SBA Coronavirus Relief Options – Comprehensive list includes:

  • Payroll Protection Plan (PPP)
  • Covid-19 Economic Injury Disaster Loan (EIDL)
  • Shuttered Venue Operators Grant Program (SVO GP)
  • SBA Express Bridge Loan
  • SBA Debt Relief
  • Cross Program Eligibility

Georgia Chamber of Commerce – Scroll to the bottom for a list of programs and safe work place recommendations.

Well, that is it for now regarding the Covid-19 relief initiatives for small business owners.

Please feel free to reach out if you have questions or if I can help you or your business!

And don’t forget to continue to support your local small business community… it is making a difference!

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What Business Owners Now Know About Their PPP Loan Forgiveness

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On Friday, May 15, 2020, the SBA released new details on loan forgiveness for Paycheck Protection Program (PPP) loan borrowers. Also included in the release was access to the application that PPP borrowers will use to apply for loan forgiveness and detailed instructions on how PPP loan borrowers should fill out the application.

This SBA application form and instructions are designed to simplify the process from borrowers and to minimize compliance burdens. However, there are gaps. And the SBA plans to issue regulations and guidance soon to provide further help to borrowers as they fill out their applications, and to give lenders guidance on their responsibilities.

Concerns…

The forgiveness application form does help address some administrative items such as providing additional clarity around “costs incurred but not paid” during the covered period, which is aligned with a recommendation by the AICPA. However, major issues remain. In particular, small businesses need flexibility on when the 8-week period should start or need to have the covered period extended to more than 8 weeks.

It’s clear the application form and instructions provided yesterday are not enough. Some of the most pressing issues are not addressed and in other areas it appears new questions have arisen.

Erik Asgeirsson, President, and CEO of CPA.com, the AICPA’s business and technology arm.

Ultimately this is an important starting point for PPP loan borrowers to know what to expect moving forward.

A Good Start…

The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles.
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan.
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness.
  • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30.
  • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined.

I recommend business owners review the application and the instructions to ensure they understand the criteria for PPP loan forgiveness. Any areas of concern or questions should be addressed with their CPAs, bankers, and financial advisors prior to completing the application.

Additional information, tools, and resources can be found using the following links:

SBA Media Release

PPP Loan Forgiveness Application

PPP Loan Forgiveness Calculator

SBA Information and Resources

Additional Information and Resources

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The Latest Information and Resources Business Owners Need to Know During COVID-19

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The business community is reeling right now thanks to COVID-19. And while initiatives are being implemented to provide some relief, small business owners are facing unprecedented challenges.  

But the rollout of so many programs on both a federal and state level is complex and complicated. And local business owners are telling me they don’t know where to turn for up-to-date information and resources they can act on right now.

In an effort to help, I have created a COVID-19 quick reference guide for business owners. Download this interactive list of information and resources business owners can use to successfully operate their business during the coronavirus crises.

Note! Information will be updated as actionable information becomes available, so check back often.

***5:00 PM April 1, 2020*** Georgia Govenor Brian Kemp just issued statewide Shelter-in-Place order that will go into effect on April 3rd.

***Update on Friday, April 3rd*** The Georgia statewide shelter-in-place, which goes into effect today, April 3rd at 6 pm through 11:59 pm on Monday, April 13, 2020. The order mandates that residents stay home except to engage in essential services, perform necessary travel, or if they are part of the workforce for critical infrastructure. Read the Shelter in Place Handout from the Governor’s Office, which provides more details about the order.

Business Owners COVID-19 Assistance Overview

The CARES Act: Coronavirus Aid, Relief and Economic Security is a $2 trillion stimulus package that includes significant relief money for small businesses.

To be eligible, a small business must be substantially affected by COVID-19, experiencing a decrease in revenue, staffing challenges or supply-chain disruptions, for example. The business must also employ less than 500 employees.

The CARES Act provisions include:

  • Emergency grants of $10 billion that will provide up to $10,000 per small business to cover immediate operating costs.
  • Forgivable loans of $350 billion that will be allocated to the Small Business Administration to provide loans of up to $10million per business for ongoing payroll and operations costs.
  • Existing loan relief of $17 billion to cover six months of payments on existing SBA loans for small businesses that already have them.
  • Expanded unemployment insurance for workers who can’t be rehired or find other work. It also extends jobless benefits to previously ineligible groups of workers, like gig workers and freelancers.

What do business owners need to know about qualifying?

Businesses must maintain a similar number of employees as they did prior to the crisis in order to be eligible for full loan forgiveness. A reduction in loan forgiveness will be applied to those businesses that do not meet this requirement.

What can small business owners do right now?

  • Reach out to your bank to verify they can process SBA loans. Tell them you plan to apply for the EIDL or the PPP loan and inquiry how to get ready to apply. They should also be able to share how quickly the grant or loan will be available.
  • If you do not have a relationship with a banker, or yours will not process SBA loans, you should find one.
  • Start gathering all pertinent documents. The required documents will vary based on the lender, but it’s a good idea to begin gathering:
    • Payroll records for the calendar year 2019 plus the first quarter of 2020, including 1099 payouts to contractors vital to the operation of your business
    • Bank statements
    • Articles of incorporation
    • Lease agreement or deed for the place of business 
    • Business certificate or license
    • Individual and business tax returns and any financial documents that reflect your financial situation
  • Not all the necessary loan application paperwork has been finalized with the banks as of today, but is expected by Friday, April 3rd.

What to do if your business doesn’t qualify?

Businesses that do not meet the requirements for the CARES grant or forgivable loan relief may still apply for a loan via the SBA Express Bridge Loan Program or Economic Injury Disaster Loan Program. These loans will need to be repaid but could help to fill the financial gap until the coronavirus crisis is over.

You need to stay informed, here’s how:

The Small Business Administration has put together a special coronavirus page detailing existing loan information. You will also find guidance for businesses and employers along with links to local assistance. As more information is released there will be updates to this link, including details about the stimulus loans and grants.

More Business Owners COVID-19 related posts and articles can be found here.