Delaware SBDC Disaster Assistance

Welcome to Disaster Assistance

We are here to help you navigate the complex maze of relief resources. Check the information below and meet with an SBDC advisor to go over financing options and resiliency strategies.

WHAT SHOULD I DO NOW?

Meet with an SBDC Advisor

Navigating the complex maze of relief resources can be overwhelming. Meet with an SBDC advisor to go over financing options and resiliency strategies. We are here working remotely 8:30 a.m. to 4:30 p.m. Monday through Friday.

Request free and confidential advising by clicking HERE
Remote Office Hours: Monday through Friday – 8:30 AM to 4:30 PM
Telephone: 302-831-1555
Email: Delaware-sbdc@udel.edu

Stay calm, do your research

If you are experiencing difficulty paying bills, reach out to your creditors, suppliers, and landlord to find out if they can enact their own relief measures to help. Some entities may offer deferred payment options, waive certain fees, or work with you to address your specific needs. Also, take a look at your insurance policy to understand the details of your business interruption coverage. Depending on the scope of your coverage, certain losses may be covered.

Be aware of scams and fraud schemes

Be on the lookout for grant fraud, loan fraud, and phishing.

Scams and Fraud Schemes

Grants

SBA does not initiate contact on either 7a or Disaster loans or grants. If you are proactively contacted by someone claiming to be from the SBA, suspect fraud.

Loans

If you are contacted by someone promising to get approval of an SBA loan, but requires any payment up front or offers a high interest bridge loan in the interim, suspect fraud.
SBA limits the fees a broker can charge a borrower to 3% for loans $50,000 or less and 2% for loans $50,000 to $1,000,000 with an additional ¼% on amounts over $1,000,000. Any attempt to charge more than these fees is inappropriate.
If you have a question about getting a SBA disaster loan, call 800-659-2955 or send an email to disastercustomerservice@sba.gov.
If you have questions about other SBA lending products, call SBA’s Answer Desk at 800-827-5722 or send an email to answerdesk@sba.gov.

Phishing

If you are in the process of applying for an SBA loan and receive email correspondence asking for PII, ensure that the referenced application number is consistent with the actual application number.
Look out for phishing attacks/scams utilizing the SBA logo. These may be attempts to obtain your personally identifiable information (PII),to obtain personal banking access, or to install ransomware/malware on your computer.
Any email communication from SBA will come from accounts ending with sba.gov.
The presence of an SBA logo on a webpage does not guaranty the information is accurate or endorsed by SBA. Please cross-reference any information you receive with information available at www.sba.gov.

Report Fraud

Report any suspected fraud to OIG’s Hotline at 800-767-0385 or online at, https://www.sba.gov/about-sba/oversight-advocacy/office-inspector-general/office-inspector-general-hotline.

Speical Consideration: Accounting, Legal, & Human Resources

REOPENING GUIDES & RECOVERY RESOURCES

Check out our Business Recovery Handbook here!

1. REOPENING ASSESSMENT – Is Reopening the Best Decision For Your Business?

Personal Assessment

As business restrictions begin to be lifted, it is important to assess your individual desires about your business. The SBDC is here to help you get back up and running, but it is important for you to know if that is your main goal. The questions below are a great way to start thinking about your personal goals and the main value to receive from being a business owner.

Were you satisfied running the business before the crisis?
Were you making the profit you wanted and distributing the funds to yourself that you needed?
Did you prefer being your own boss?
Have you considered other opportunities?
Do you have a desire to reopen the business?
Are you ready to potentially change your business model to meet the demands of the post-COVID marketplace?
Were you able to manage the risks of your business in a sustainable way?
Are you prepared for the extra demands that recovering your business will place on you, both personally and financially?

If you answer no to any of the questions, please click HERE to schedule a confidential, one-on-one session with an advisor. There are several important items to prepare if you consider closing your business. Click HERE to find more.

Once you are ready to move to the next step, click the button below.

NEXT STEP

Business Assessment

It is important to look at the impact COVID-19 has had on your business and if you are prepared to move forward.

Have you fully considered whether to reopen, close, or sell/merge your business?
Are you willing to change your current business model to make it more sustainable in the long-term?
Will there still be a demand for your product/service during and after the current crisis?
Have you investigated the potential liability in reopening?
Are you willing to change your business practices and procedures to accommodate COVID-19 safety concerns in the short-term?

Once you are ready to move to the next step, click the button below.

NEXT STEP

Cash Flow Assessment

Cash is the lifeblood of your business. Understanding your current cash flow is an incredibly important factor in assessing your business’s financial health. Begin by reviewing the questions below and then the topic-specific resources.

Have you determined how much cash your business currently has available by creating a cash flow statement?
Have you created a balance sheet and a profit and loss statement from the beginning of the current fiscal/calendar year?
Have you spoken to your landlord about securing more favorable rent or mortgage terms?
Have you spoken to your lender to determine if existing loan terms can be renegotiated?
Have you evaluated where you can reduce or eliminate costs?
Can you afford to reopen your business? If you cannot afford your recovery plan, have you considered exiting the business?
Do you have unused assets that should be sold?

Below is a list of finance-related resource links:

SBA – Manage Your Finances

Once you are ready to move to the next step, click the button below.

NEXT STEP

Financial Future Assessment

New financial projections and assessments must be put together based on the current situation. Begin by reviewing the questions below and then the topic-specific resources.

Have you completed a cash flow forecast?
Have you done financial projections that incorporate the current situation? Will you be able to afford current debt payments?
Will you be able to reopen using existing financial resources (from the business or your own)?
Will you need to look for additional financial resources from investors, banks, lenders, or a mix?
If you are seeking debt financing, have you determined for what reason you are seeking the money (i.e. to replace inventory or buy equipment), the length of the loan term, and how much you will need?
For existing debt financing arrangements, have these been reviewed to ensure that the finance facility and structure fit the new needs of the business? Can any term be renegotiated?
Have you used these forecasts to run “what if” scenarios to measure how your cash flow will be impacted by further unexpected events or limited revenue?
Using these financial tools, have you analyzed the business’s financial health? After reopening, how long will current financial resources last if revenue is slow?

Below is a list of finance-related resource links:

PPP Loan Forgiveness Application

FTC – Avoid Coronavirus Scams

SBA – Loan Resources

State Government – Enhanced Reimbursement Application for childcare providers

Delaware Alliance for Nonprofit Advancement – Emergency Funding for Nonprofits

Once you are ready to move to the next step, click the button below.

NEXT STEP

Reopening Assessment

After looking at the entire picture, it is important to put all pieces together and make an informed decision about moving forward.

After all your considerations, should you reopen your business?
If you feel you should consider closing your business, please click HERE to schedule a no-cost, confidential, one-on-one session with an advisor. You can also click HERE and review the closing considerations to prepare for that meeting.
If you are ready to reopen your business, continue to the next section.

Once you are ready to move to the next step, click the button below.

NEXT STEP

2. REOPENING PLAN – CONSIDERATIONS TO SUCCESSFULLY REOPEN

Reopening Plan

With the decision to reopen made, a detailed plan must be in place to account for the current situation. Because of the changes COVID-19 has brought about, it is important to not only think about reopening your business, but how to reimagine your business. Begin by reviewing the questions below and then the topic-specific resources.

Is attempting to reopen without any changes possible? If not, what will need to change?
Have you familiarized yourself with health/governmental COVID reopening regulations? Do you have well-articulated protocols to keep your staff and customers safe?
Have you developed your reopening plan that reflects the current situation? Will you need to reopen in phases – ramping up staffing, inventory, etc.? Have you developed a timeline?
Are your inventory, supplies, and equipment adequate? Do you have a sufficient, resilient supply chain in place to operate? Do you need to cancel/postpone current orders or delay purchasing new supply/inventory? Can you get better terms on previous/new orders?
Will you be able to provide adequate staffing when you reopen? Will they be properly trained on current safety and health requirements?
If other businesses in your area have closed, have you determined how that may impact you?
Given the change in market conditions, does your business still need a physical location? Do you have an online presence in addition to a physical location?
Is the size of your facility too large or small given the future potential of the business? What changes will you have to make to your physical location in order to open?

Below is a list of government reopening links:

Delaware Governor’s Office – Delaware’s Economic Reopening

Delaware Governor’s Office – Reopening Guidance

CDC – Reopening Guidance for Cleaning and Disinfecting For a PDF version click HERE

CDC – Reopening Decision Tree for Businesses and Workplaces For a PDF version click HERE

CDC – Reopening Decision Tree for Restaurants and Bars For a PDF version click HERE

CDC – Reopening Decision Tree for Child Care For a PDF version click HERE

Below is a list of reopening best practices:

America’s SBDC health and safety-related resources

Once you are ready to move to the next step, click the button below.

NEXT STEP

Staffing

Being able to reopen may depend heavily on your ability to have the staff available to meet demand. Begin by reviewing the questions below and then the topic-specific resources.

Have you created a staffing plan to reopen? Will it need to be set in phases?
Will you need to lay anyone off?
Will your staff be able to work fully or partially on a remote basis?
Have you communicated with your employees about the plan?
Have you considered what your new staffing model means in terms of your obligations, e.g., insurance, taxes, benefits, etc.?
Do you have a plan to train your staff on new procedures – including safety and health procedures?

Below is a list of staffing-related resource links:

Department of Labor – Coronavirus Resources: Includes workplace safety and unemployment insurance flexibility, as well as several other topics.

Once you are ready to move to the next step, click the button below.

NEXT STEP

Vendors and Suppliers

Understanding your supply chain is a critical factor in reopening and ensuring you can meet the demands of your customers. Begin by reviewing the questions below and then the topic-specific resources.

Have you connected with each vendor, supplier, and member of your supply chain?
Do you have a clear picture of each link in your mission-critical supply chain?
Have you clearly communicated your needs and expectations to your suppliers?
Is there a need to renegotiate pricing or payment terms with those in your supply chain?
Do you have defined alternatives if one or more of your suppliers is unable to meet your needs?
Is there a plan in place for continuously analyzing the performance of your supply chain?

Below is a list of resource links on the supply chain topic:

FEMA – Supply Chain Resilience Guide

Once you are ready to move to the next step, click the button below.

NEXT STEP

Inventory

Understanding your inventory is a critical factor in reopening and ensuring you can meet the demands of your customers. Begin by reviewing the questions below and then the topic-specific resources.

Have you analyzed the potential demand for your products/services for the next 6 to 12 months?
For inventory identified as slow-moving, have you considered removing it from your product lineup?
Have you assessed whether new market conditions will impact customer buying patterns?
Have you asked your customers how they prefer to buy your product/service in this new environment?

Below is a list of resource links on the inventory topic:

Square – Inventory Management 101: How to Manage Small Business Inventory

Shopify: You’re Losing Money By Not Using These 8 Inventory Management Techniques

Once you are ready to move to the next step, click the button below.

NEXT STEP

Pricing

It is important to look at what the impact of the current situation will have on your pricing. You will need to assess how to set pricing that meets your needs, while also avoiding gouging. Begin by reviewing the questions below and then the topic-specific resources.

Have you done an evaluation on what pricing the new market will tolerate/bear?
Have you compared your pricing to your competitors?
Do you need to reevaluate your payment terms?
Have you undertaken a break-even analysis to determine whether the prices you charge are making the profit you want and need to achieve?

Below is a list of resources on the pricing topic:

ASBDC – Guide to Setting Pricing

SBA – Introduction to Pricing

SBA – Pricing Models for a Successful Business

Once you are ready to move to the next step, click the button below.

NEXT STEP

3. RECOVERY PLAN – CONSIDERATIONS FOR A FUTURE RECOVERY PLAN

Marketing and Communications

Marketing and communications are just as important now – if not more – than ever before. Begin by reviewing the questions below and then the topic-specific resources.

How do you intend to advertise that your business has re-opened? What is your communication plan?
Have you analyzed your local, regional, and/or national competition?
Have you identified your target customer and how to best reach them?
Have you identified the key stakeholders and customers to target?
What items and practices should be added to your existing marketing strategy?
If customer orders have been lost or you simply cannot support them on time, have you informed those customers?
Have you re-evaluated what your customer is willing and able to pay for in this new environment?
Have the changes in society and business that occurred during the pandemic created a new or different need that you can serve?

Below is a list of marketing-related resource links:

COMING SOON

Below is a list of communication-related resource links:

COMING SOON

Once you are ready to move to the next step, click the button below.

NEXT STEP

Recordkeeping

Recordkeeping is always important, but current factors – like loan forgiveness – make it that much more important to stay on top of. Begin by reviewing the questions below and then the topic-specific resources.

Have you considered what accounting system you are going to use to continue to keep your financial records up to date? Do you need to upgrade to QuickBooks or a similar platform?
If you have accepted either a grant or forgivable loan funding, do you have a full understanding of the documentation and reporting guidelines associated with those funds?
Do you have an offsite back-up of all your records and important documents/information?

Below is a list of recordkeeping-related resource links:

SBA – Guide to Recordkeeping

Once you are ready to move to the next step, click the button below.

NEXT STEP

Technology

No matter how much your technology needs have changed (or will change) because of COVID-19, it is important to know what you need to move forward. Begin by reviewing the questions below and then the topic-specific resources.

Will you need to adopt or add any new technologies or processes?
Is your point of sale system adequate for moving forward?
Have you reviewed if any cybersecurity improvements need to be made?

Below is a list of cybersecurity-related resource links:

Delaware SBDC cybersecurity resources

America’s SBDC cybersecurity resources

Below is a list of other technology resource links:

COMING SOON

Once you are ready to move to the next step, click the button below.

NEXT STEP

New Ideas for Moving Forward

As businesses reopen, several considerations must be made related to how you do business. Begin by reviewing the questions below and then the topic-specific resources.

Have you documented lessons learned from your business recovery?
Have you reviewed your insurance coverage to see whether it is adequate and whether there are any gaps in your coverage?
Will you need to change your business model, either in the short-term or permanently?
Are there new distribution channels you should consider?
Are there new products or services you can offer to diversify your business?
What are the sources of risk to your business that you now understand? Which of those can and should be proactively managed and how?

Below is a list of innovation-related resource links:

COMING SOON

Below is a list of business model-related resource links:

COMING SOON

Once you are ready to move to the next step, click the button below.

NEXT STEP

What If?

No one can predict the future, so it is vitally important – especially now – to be prepared for what may come next. Begin by reviewing the questions below and then the topic-specific resources.

Are you prepared if COVID-19 or any other factors require businesses to close again?
Have you considered creating a business continuity plan in case you go through another crisis?

Below is a list of planning-related resource links:

Ready.gov – Business Continuity Planning Resource

America’s SBDC – Small Business Resiliency Resource

4. GUIDANCE FOR SPECIFIC INDUSTRIES

Restaurants

Restaurants have several industry-specific issues that need to be addressed as businesses reopen and/or return to serving customers on-site. It is important to understand the official government guidelines you will be required to follow and industry best practices for implementing those guidelines.

Reopening Guidelines Links

Delaware Governor’s Office – Reopening Guidance – See page 16 for Food and Drink Establishments

Delaware Division of Small Business – General and Industry Guidance: General and industry-specific guidance applicable to all individuals and businesses.

FDA – Best Practices for Food & Beverage Businesses During the COVID-19 Pandemic: A good, authoritative source on health guidelines for Food & Beverage employers and workers

OSHA – Takeout and Curbside Pickup Guidance: These are being continuously updated, so this link is to OSHA’s Publications page where the latest document can be found.

CDC – Considerations for Restaurants and Bars: As bars and restaurants phase back into operations, the CDC has issued a series of guidelines and best practices, which they stress “are meant to supplement—not replace—any state, local, territorial, or tribal health and safety laws, rules, and regulations with which businesses must comply”

Best Practices from Leading Industry Organizations Links

National Restaurant Association – COVID-19 Reopening Guidance: An in-depth review of best practices for all aspects of restaurant operations. Always look to official regulators for specific health-related guidance.

Delaware Restaurant Association – Restaurant Reopening Toolkit: A comprehensive, all-in-one document including operator information and guidance from all state agencies, plus a master checklist of critical steps needed to take before restaurant reopening can occur.

National Restaurant Association – ServSafe Coronavirus Primer: A thorough document with specific information on food safety issues (Bilingual document English and Spanish)

RestaurantOwner.com – Surviving the Coronavirus Crisis: This site covers a wide range of restaurant-specific resources, including a comeback webinar series

Retail

Below is a compilation of resources from the Delaware Governor’s Office, leading industry organizations, and others:

Reopening Guidelines Links

Delaware Governor’s Office – Reopening Guidance – See page 17 for Retail Establishments.

Delaware Division of Small Business – General and Industry Guidance: General and industry-specific guidance applicable to all individuals and businesses.

OSHA – Retail Workers Guidance: These are being continuously updated, so this link is to OSHA’s Publications page where the latest document can be found.

Best Practices from Leading Industry Organizations Links

National Retail Federation (NRF) – Coronvirus Resources for Retailers

National Retail Federation (NRF) – Operation Open Doors: A compilation of resources that includes an Operation Open Doors Checklist

Salons and Barber Shops

Below is a compilation of resources from the Delaware Governor’s Office, leading industry organizations, and others:

Reopening Guidelines Links

Delaware Governor’s Office – Reopening Guidance – See page 18 for Hair Salons and Barber Shops.

Delaware Division of Small Business – General and Industry Guidance: General and industry-specific guidance applicable to all individuals and businesses.

Best Practices from Leading Industry Organizations Links

American Barbers Association – Guidelines for Restarting a Barbershop or Salon

National Barber Board – Suggested Guidelines for Reopening Barbershops and Barber Schools

Professional Beauty Association – Back-to-Work Guidelines

Fitness Centers

Below is a compilation of resources from the Delaware Governor’s Office, leading industry organizations, and others:

Reopening Guidelines Links

Delaware Governor’s Office – Reopening Guidance – See page 19 for Training Salons and Exercise Facilities.

Delaware Division of Small Business – General and Industry Guidance: General and industry-specific guidance applicable to all individuals and businesses.

Best Practices from Leading Industry Organizations Links

International Health, Racquet & Sportsclub Association (IHRSA) – 18 Safety Considerations for Your Health Club Reopening Plan

Childcare

Below is a compilation of resources from the Delaware Governor’s Office, leading industry organizations, and others:

Reopening Guidelines Links

Delaware Governor’s Office – Reopening Guidance – See page 22 for Childcare Facilities.

Delaware Division of Small Business – General and Industry Guidance: General and industry-specific guidance applicable to all individuals and businesses.

State Government – Enhanced Reimbursement Application for childcare providers

Entertainment Venues

Below is a compilation of resources from the Delaware Governor’s Office, leading industry organizations, and others:

Reopening Guidelines Links

Delaware Governor’s Office – Reopening Guidance – See page 15 for Arts and Cultural, Museums, Galleries, and Historical Attractions.

Delaware Division of Small Business – General and Industry Guidance: General and industry-specific guidance applicable to all individuals and businesses.

Best Practices from Leading Industry Organizations Links

American Alliance of Museums – Reopening Considerations

Other Industries

Below is a compilation of resources from the Delaware Governor’s Office, leading industry organizations, and others:

Reopening Guidelines Links

Delaware Governor’s Office – Reopening Guidance – See page 23 for Other Industries Guidance.

Delaware Division of Small Business – General and Industry Guidance: General and industry-specific guidance applicable to all individuals and businesses.

Best Practices from Leading Industry Organizations Links

Tattoo Industry: Alliance of Professional Tattooists – COVID-19 Guidance

Construction Industry: Guidance for Employees and Employers & Exposure Control Plan

National Association of Realtors: Virtual Showing Guidance & Commercial Real Estate Guidance

Lodging Industry: Enhanced Hotel Cleaning Standards from the American Hotel & Lodging Association

5. CLOSING YOUR BUSINESS – CONSIDERATIONS FOR EXIT STRATEGIES

Exit Strategy/Plan

If you are considering closing your business, there are several important areas to review and address. Below is a framework to get you started.

Have you evaluated and ruled out each option available?
Have you drafted a timeline with anticipated deadlines for each action?
Have you spoken to your tax professional and/or accountant?
Have you evaluated all legal and regulatory issues that will need to be addressed on the local, state, and federal levels?

Once you are ready to move to the next step, click the button below.

NEXT STEP

Action Items

Have you created a list of any creditors, landlord, banker, and/or employees that would need to be notified?
Do you have a plan to collect or sell all outstanding receivables?
Do you have a plan to sell off any remaining inventory?
How will you notify your customers?
When will you submit your final payroll forms and taxes?
How will you distribute all remaining cash and assets?

Once you are ready to move to the next step, click the button below.

NEXT STEP

Cease Operations

How and where will you store your records?

Once you have thought about the items above, we recommend scheduling a no-cost, confidential one-on-one meeting with a local SBDC Advisor. Please click HERE to schedule an appointment.

DISASTER LOANS AND GRANTS

credit, investment or fundraising financial concept, money to start business project startup

State of Delaware Relief Grants

The State of Delaware Relief Grants are a joint effort between the State and New Castle County to assist Delaware small businesses and nonprofits impacted by the COVID-19 pandemic. The funds for the program come from the federal CARES Act.

All small businesses, based on the SBA definition, and many non-profits are eligible for a DE Relief Grant. All grants issued to for-profit businesses must be closed out in 2021. In order to close out the grant, a business must submit proof of all relevant expenditures along with federal tax returns for calendar year 2020 that show at least a 7.5 percent revenue decrease relative to 2019. If a decrease in this amount is not shown, the grant must be paid back to the state with interest applied.

The grant can be used for the following:

Equipment purchased to make business suitable for COVID-19 safety (PPE, plexiglass, air purifiers, etc)
Refinancing of debt incurred due to COVID-19 (including state of Delaware HELP loans)
Technological enhancements undertaken in order to adapt business model for COVID-19
Advertising efforts undertaken as a result of COVID-19
Fixed expenses the applicant accrued during COVID-19 (e.g. rent, mortgage, utilities, insurance, etc.)

For more information, such as deadlines and qualifications, visit the website or view the webinar presented by the Division of Small Business: https://youtu.be/WNBMFeYAp7s

Read the FAQs at the website: https://business.delaware.gov/relief/

SBA - Economic Injury Disaster Loan (EIDL)

LAST UPDATE: 10/11/2021

Delaware was approved for an Economic Injury Disaster Loan program by the U.S. Small Business Administration. These loans assist small businesses, nonprofits and more, in meeting ordinary and necessary financial obligations that cannot be met as the result of COVID-19.

Loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. It does not cover lost sales.

SBA - Paycheck Protection Program (PPP)

LAST UPDATE: 09/14/2020

Notice: Paycheck Protection Program closed August 8, 2020

Current law dictates that the Paycheck Protection Program (PPP) close at the end of August 8, 2020. As such, SBA is no longer accepting PPP applications from participating lenders.

Loan Details and Forgiveness

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll).

Frequently Asked Questions about PPP Loan Forgiveness (08-11-2020)

PPP loans have an interest rate of 1%.
Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.
Loan payments will be deferred for six months.
No collateral or personal guarantees are required.
Neither the government nor lenders will charge small businesses any fees.

Loan Forgiveness

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. The loan forgiveness 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 24-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

- MORE DETAILS:
  - US Treasury official information: CLICK HERE
  - SBA official information: CLICK HERE
  - PPP FAQs: CLICK HERE
  - PPP LOAN FORGIVENESS Guidelines: CLICK HERE

Delaware Nonprofits Can Access Paycheck Protection Program Loan through NDC & Stepping Stones

When the SBA Paycheck Protection Program (PPP) relaunches, Delaware nonprofits will have exclusive access to $12 million in funds designated by the National Development Council (NDC), thanks to the generous underwriting of Longwood Foundation, Welfare Foundation, the Jessie Ball duPont Fund and with support from Discover Bank.

Delaware nonprofits will be able to apply for specifically designated funds through the NDC, a Community Development Financial Institution which has worked with Delaware nonprofits and foundations to increase the flow of capital to low-income communities. The NDC is partnering with Stepping Stones Community Federal Credit Union, a Delaware financial institution dedicated to serving limited income communities in Wilmington, to help Delaware nonprofits access the SBA PPP loan.

Nonprofits are encouraged to prepare their applications by watching this detailed webinar (found here) that NDC created. Applications will not be processed unless they are completed correctly with all necessary signatures and documentation. The loan application will be available for nonprofits to apply on DANA’s website.

Who can apply? Any Delaware 501c3 which is eligible to apply for the SBA PPP loan and has not yet received confirmation that it was approved by another financial institution. Note, the SBA will only offer one loan per organization. Because this funding is set aside for Delaware nonprofits, there is a smaller waiting list to the SBA. We do encourage nonprofits that if they find out they received an SBA approval through another lending institution, they notify NDC (and vice versa). Additionally, nonprofits are encouraged to apply to NDC, but also to continue to seek PPP funding at their banking institution.

Need help with your application? NDC has provided a pre-recorded training webinar (41mins), a wage calculator and the SBA loan application which can be found here: https://delawarenonprofit.org/covid-19-related-funding/

Please see step-by step instructions here:

Step 1:

Use this LINK or go on DANA website to input your agency eligibility questionnaire. It’s a 3 part questionnaire that does not require that you upload anything yet.

Step 2:

You will then receive an email from NDC saying “Your Grow America Fund Inc Pre-Qualification Form Has Been Submitted.”
Next, you will get an email saying, “You’ve been invited to join”. Within that email, there will be a link to set up your account. The link expires in 5 days. The link references the Grow America Fund (don’t be alarmed. That’s okay!)

Step 3:

Once you set up your account, you can enter the full application portal and begin uploading their information.

DANA, the Delaware Alliance for Nonprofit Advancement, is offering support to nonprofits in the form of volunteers who will answer questions and walk nonprofits through filling out loan application. To request volunteer help, click here or visit the DANA website at https://delawarenonprofit.org/covid-19-related-funding/

See full press release HERE.

APPLY HERE

SBA - Debt Relief

LAST UPDATE: 04/24/2020

The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic

Eligibility: 7(a) loans not made under the Paycheck Protection Program (PPP), 504 loans, and microloans. Disaster loans are not eligible
Lender: Borrower’s current SBA-certified lender
How to apply: Debt relief is automatic, but you should check in with your lender
Term: SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months
Amount: n/a
Interest rate: n/a
Collateral requirements: n/a
Personal guarantee: n/a
First payment due: n/a
Application processing time: n/a
Forgiveness: The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
Application fees: n/a
Loan availability period: Through September 27, 2020
Usage: Support the survival and/or reopening of the business
Restrictions: n/a
Loan Interactions: Borrower may separately apply for and take out a PPP loan, but debt relief will not apply to a PPP loan
Notes: n/a
- MORE DETAILS:
  - SBA official information: CLICK HERE

SBA - Express Bridge Pilot Loan Program

LAST UPDATE: 04/24/2020

This pilot program allows SBA Express Lenders authority to deliver expedited SBA-guaranteed financing on an emergency basis for disaster-related purposes to eligible small businesses, while the small businesses apply for and await long-term financing.

Eligibility: Any business in operation before March 13, 2020, that has fewer than 500 employees or otherwise meets the SBA’s existing Size Standard (predicated or NAICS code and annual revenue)
Lender: SBA-certified Bank/Credit Union
How to apply: SBA-certified lender that has an existing banking relationship with applicant as of 03/13/2020
Term: Maximum of 7 years. Must be structured as a term loan, not a revolving LOC
Amount: up to $25,000
Interest rate: Not to exceed Prime + 6.5%, fixed or variable
Collateral requirements: None
Personal guarantee: n/a
First payment due: n/a
Application processing time: within 45 days of approval, and no later than 90 days
Forgiveness: May be repaid in full or in part by proceeds from an EIDL
Fees: To be determined by the SBA and lender
Loan Availability Period: March 13, 2020 – September 13, 2020
Usage: Working capital to be used to cover operational expenses to support the survival, or the reopening of the business
Restrictions: Borrower may obtain only one EBL
Loan Interactions: Will be repaid in full or in part by proceeds from the EIDL loan
Notes: n/a
- MORE DETAILS:
  - SBA official information: CLICK HERE

STATE - H.E.L.P Loan (Hospitality & Personal Care Industries)

The Hospitality Emergency Loan Program (HELP) provides financial relief for restaurants, bars and other hospitality industry businesses, as well as barbers, salons, etc. that employ thousands of Delawareans. See below NAICS codes that apply:

o 7225 Restaurants and Other Eating Places
o 7224 Drinking Places (Alcoholic Beverages)
o 7223 Special Food Services
o 7211 Traveler Accommodations
o 7139 Other Amusement and Recreation
o 7131 Amusement Parks & Arcades
o 7121 Museums and Historical Sites
o 7113 Promoters of Performing Arts
o 7112 Spectator Sports
o 7111 Performing Arts Companies
o 4855 Charter Bus Industry
o 4879 Scenic and Sightseeing Transportation, Other
o 4872 Scenic and Sightseeing Transportation, Water
o 4871 Scenic and Sightseeing Transportation, Land
o 3121 Beverage Manufacturing
o 3118 Bakeries and Tortilla Manufacturing
o 8121 Personal Care

The no-interest loans are capped at $10,000 per business per month. The money can cover rent, utilities and other unavoidable bills but cannot be used for personnel costs. The loans have a 10-year term with payments deferred for nine months. Eligible businesses must have been in operation for at least a year, have annual revenue below $2.5 million and be in certain hospitality or personal care industries. Restaurants are now eligible for assistance if they have annual revenue under $15 million. Other eligibility guidelines apply. Email business@delaware.gov to learn if you qualify or call 302-739-4271 with additional questions.

MORE DETAILS:
- Application form: CLICK HERE
- State official information: CLICK HERE

UNEMPLOYMENT AND CHILDCARE

Look at updated unemployment policies

If you need to reduce your workforce, or your staff is unable to report to work as a result of COVID-19 (i.e. medical issues, child care issues, etc.), help your staff understand how the Delaware Department of Labor (DOL) can help. Unemployment insurance guidelines are being adjusted to respond to this crisis, and new parameters may help with eligibility for benefits.

Although DOL offices will be closed to public access during this state of emergency, the department remains operational and offers the ability for Delawareans to file for unemployment benefits online at the following link: https://ui.delawareworks.com/. Questions can be answered via email at uiclaims@delaware.gov, via at 302-761-8446, or TEXT “UIFACTS” to 555888.

Here are the steps self-employed & independent contractors should take to apply for Pandemic Unemployment Assistance (PUA). Follow this link: https://dol.delaware.gov/uifaqs/apply-for-pua.php

Find additional information HERE

Unemployment policies for self-employed and independent contractors

Updated 4/17/2020

The Coronavirus Aid, Relief, and Economic Security (CARES) provides unemployment assistance to independent contractors and those self-employed who have been affected by the Coronavirus.

Most state’s unemployment systems determine eligibility and process payments for workers whose wages are reported by their employers and verified through the Division of Unemployment Insurance (DUI). In order to begin processing claims for this new category of eligible individuals and prevent fraud, abuse and identity theft, the Federal US Department of Labor requires that states design new systems to pay benefits to independent contractors/self-employed and ensure the validity of their claims.

Delaware Department of Labor (DOL) is currently working with a vendor to design and test new technologies that will integrate with existing benefits claims system. This technology will allow the Division of Unemployment Insurance (DUI) to verify earnings reported to the IRS and determine the eligibility of independent contractors and the self-employed to apply for benefits under the (CARES) Act.

We anticipate that these workers will be able to apply through this new system within 3-6 weeks. Please look for updates on the Delaware DOL website HERE.

See the official news release from DE DOL HERE.

Emergency Child Care Application

On March 30th, 2020, Governor Carney modified the State of Emergency declaration, which, beginning April 6 and continuing until the State of Emergency is lifted, limits child care programs to only those designated as emergency child care sites. After April 6, child care may only be provided by child care centers and homes that have been designated as “Emergency Child Care Sites” by the Department of Services for Children, Youth & Their Families (DSCYF).

In order to be a emergency child care site, child care centers and child care homes must certify that they are only providing child care to the children of personnel working for essential businesses (as defined by Governor Carney’s State of Emergency) and cannot work from home.

APPLY HERE

CARES ACT OVERVIEW

CARES Act Overview

The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was just passed by Congress are intended to assist business owners with whatever needs they have right now. When implemented, there will be many new resources available for small businesses, as well as certain nonprofits and other employers.

The CARES Act includes:

See more information HERE

Faith Based Organizations

The SBA issued guidance clarifying that all faith-based organizations impacted by Coronavirus (COVID-19) are eligible to participate in the Paycheck Protection Program and the Economic Injury Disaster Loan program, without restrictions based on their religious identity or activities, to the extent they meet the eligibility criteria outlined in the CARES Act that was passed.

To find out more, CLICK HERE.

Research Retirement Clause

The Act contains a few key provisions designed to assist retirement plan participants who are struggling financially during these unprecedented times. Here is a quick summary of these key provisions. REMEMBER to check with your financial advisors, plan administrators or accountants before making any decisions.

Hardship Distributions
The CARES Act waives the Code Section 72(t) additional 10% penalty tax on early (pre-age 59 ½) withdrawals up to $100,000 from a retirement plan or IRA for an individual who:

Is diagnosed with COVID-19
Whose spouse or dependent is diagnosed with COVID-19
Who experiences adverse financial consequences as a result of being quarantined, furloughed, laid off, having work hours reduced, being unable to work due to lack of child care due to COVID-19, closing or reducing hours of a business owned or operated by the individual due to COVID-19, other factors as determined by the Treasury Secretary.

A coronavirus-related distribution under the Act can be included proportionally in the qualified individual’s taxable income over a three-year period, unless the individual elects to have it taxed in the year of distribution. In addition, the distribution will not be treated as eligible rollover distributions, so the mandatory 20% withholding does not apply.

The Act also allows a qualified individual who takes a coronavirus-related distribution to repay that amount tax-free back into the plan within three years of taking the distribution. Such repayment would be treated as a rollover contribution and not subject to annual maximum contribution limits.

Plan Loans
For individuals who qualify for a coronavirus-related distribution, the CARES Act also doubles the current retirement plan loan limit to the lesser of $100,000 or 100% of the participant’s vested account balance in the plan. This increased loan amount is available for loans made during the 180-day period beginning on the date of enactment. In addition, the Act extends the due date of any qualified individual’s loan repayment that would otherwise be due during 2020 (but on or after the date of enactment) to one year after the otherwise applicable due date.

Plan Amendments
Retirement plans may choose (but are not required) to adopt these rules immediately, even if the plan does not currently allow for hardship distributions or loans. The plan amendment deadline for adopting these new rules would be no earlier than the last day of the first plan year beginning on or after Jan.1, 2022 (Jan. 1, 2024 for governmental plans), or later as prescribed by the Treasury Secretary.

See CARES Act Section 2202 for full details HERE.

ASISTENCIA DE DISASTRE EN ESPANOL

Asistencia de CARES Act y SBA en Respuesta al Coronavirus (SBA resources in Spanish)

Los funcionarios de salud y gubernamentales están trabajando conjuntamente para mantener la seguridad, protección y salud del público. Se alienta a las pequeñas empresas a poner de su parte para mantener saludables a sus empleados y clientes.

COVID-19 Webinars en Español para Pequeños Negocios (Webinars in Spanish)

Como parte de la emergencia ocasionada por el Coronavirus (COVID-19), el SBTDC de Perto Rico ha realizado varios Webinars, de temas de ayuda para los pequeños y medianos negocios. www.prsbtdc.org

OTHER RESOURCES

International Business Regulations

If you are selling your product internationally or expecting a shipment for a foreign country, please click the below link to see how the COVID-19 Pandemic will effect your business.

https://www.cbp.gov/newsroom/coronavirus

Ad Credits for Google

Google wants to help alleviate some of the cost for small and medium-sized businesses (SMBs) to stay in touch with their customers during this challenging time. They are giving SMBs worldwide $340 million in ad credits, which can be used at any point until the end of 2020 across Google Ads platforms. SMBs who have been active advertisers since the beginning of 2019 will see a credit notification appear in their Google Ads account in the coming months. This is part of a larger commitment from Google to support SMBs, health organizations and governments, and health workers on the frontline of this global pandemic.

This page provides additional information and will be periodically updated. As an additional resource to help you manage your business through uncertainty please visit the Google for Small Business site.

Social Mogul Blog Provides Marketing Advice

Miss Social Mogul, a Delaware small business, is constantly updating her blog on ways to market in the current COVID-19. See general and industry-specific tips to keep on top of marketing during this time.