NWBDA’s Response to the COVID-19 Outbreak
In response to COVID-19 outbreak and the financial impact it is having on our borrowers, we have put together some options for your consideration. Please review and let us know if we can be of further assistance to you.
SCORE mentors are rising to meet the many challenges faced by small business owners during this time of recovery from the coronavirus pandemic. SCORE is also offering a new real-time mentoring platform in addition to scheduled phone, video, and email options.
Navigating this unprecedented crisis is new for small business owners, so it helps to have trusted mentors who can provide guidance along the way. And SCORE knows you need advice quickly. This new method of mentoring shortens the time a client connects with a SCORE mentor from days to minutes.
SBA Disaster Assistance
Learn about SBA’s Disaster assistance and loans.
Please be advised that this is not a loan product NWBDA can assist you with.
Taxes – CARES Act 1112 Section Payments
On January 28, 2021, SBA released an Information Notice to all SBA Lenders and Certified Development Companies regarding the CARES Act Section 1112 payments.
This Notice states that the Internal Revenue Service, effective December 27, 2020, has enacted Section 278(c) of the COVID-related Tax Relief Act of 2020 which provides that “any payment described in section 1112(c) of the CARES Act shall not be included in the gross income of the person on whose behalf such payment is made”.
Based on this update, a MISC-1099 will not be issued to our SBA 504 borrowers for any CARES Act payment received in 2020 as well as any paid in 2021. This IRS update relates to your Federal Income Taxes only.
Your 2020 annual interest and loan fee statements were mailed out in late January. In the event you have not received, email us at email@example.com and we will get you a copy. This annual statement breaks down all interest and fees paid by the borrower and the SBA separately.
Should you have any questions regarding this matter, please seek advice from your tax advisor or accountant.
Small Business Paycheck Protection Program (under the CARES Act)
SBA has officially closed the Paycheck Protection Protection.
Forgiveness Application and Instructions: CLICK HERE
WA State Resources
The Governor’s Office for the State of Washington has put together a list of resources to support Washington businesses impacted by COVID-19. The guidance provided offers information related to financial, export, employer and employee, and insurance assistance for businesses. See More
SBA 504 Loan – Payment Deferral Information
SBA may agree to defer payments on a 504 SBA loan for up to 6 months and will adjust future payment amounts to allow the Borrower to catch up. The catch up period will depend on various factors including loan amount, loan term and borrower’s ability to repay.
Checklist for deferral request
Borrower must provide the following information in order for NWBDA to process the loan payment deferral request:
- Written Statement outlining the reason(s) for the cash flow problem. This explanation should be specific and relay why the Borrower’s cash flow problems are a short term issue.
- Contact information – Provide the best email and phone number where you can be reached. Prior to submitting to SBA, we will be calling you to ask a few business related questions.
- Correspondence (email is sufficient) from the Bank who holds your first trust deed loan that outlines the relief/deferment or modification they will be providing on your loan.
- Current financial information consisting of:
- Current financial statements (form 770) for all guarantors
- 2019 & 2020 Personal Tax Returns or copy of extension(s) for all guarantors
- 2020 year-end business financial statement
- Current interim financial statement (within last 90 days)
- If Borrower has any affiliates, a current consolidated financial statement
- 2019 & 2020 Business Tax Returns or copy of the extension
We ask that you send all the above information at one time versus multiple submissions/emails. You can securely upload your documents at https://www.nwbusiness.org/upload-deferment/ or email them to firstname.lastname@example.org.
CARES Act Fraud
Fraudsters have already begun targeting small business owners during these economically difficult times. Be on the lookout for grant fraud, loan fraud, and phishing.
Read more: HERE
NWBDA Client Highlight:
Chinook Enterprises, Eddyline Kayaks and Skagit Rotary have come together to deliver hundreds of desperately-needed face shields to local hospitals, elderly care facilities and others across Skagit County. HERE