Covid-19 Information
Covid-19
Information
Paycheck Protection Program
An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
The Paycheck Protection Program (PPP) provides loans to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. SBA is currently offering:
- PPP First Draw Loans are an SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
- PPP Second Draw Loans are beginning January 13, 2021 for eligible businesses who have previously received a PPP loan.
To promote access for smaller lenders and their customers, SBA is currently only accepting loan applications from participating community financial institutions (CFIs). Lender Match can help you find a participating CFI.
SBA also offers additional Coronavirus relief.
PPP Loan Forgiveness has information for borrowers who may be eligible for loan forgiveness.
Small Business Grants and Loans
Mississippi Legislature Creates Small Business Grant Program
COVID-19 Relief Payment Fund (DFA) — $60 million in $2,000 grants to small businesses that were forced to close in response to the pandemic.
- $2,000 direct payments to qualifying businesses that were subject to a COVID-19 business closure requirement
- No application required
- For small businesses with no more than 50 employees and are not a subsidiary of a larger company with more than 50 employees
- Businesses that fall within several NAICS codes are eligible, including but not limited to: retail, barber/beauty salons, restaurants, movie theaters, golf courses, marinas, gyms
- Must have been in business before March 1, 2020 and filed taxes in 2018 or 2019 unless created since January 1
Back to Business Mississippi Grant Fund (MDA) — $240 million
- For-profit companies in Mississippi as of March 1, 2020 and filed taxes in 2018 or 2019 unless created since January 1
- Must have customers or employees coming to its physical premises
- For small businesses with no more than 50 employees and are not a subsidiary of a larger company with more than 50 employees
- Ineligible if they worked with a lobbyist in 2020 or lobbied state or federal officials themselves
- Funds can be used to cover eligible expenses of mortgage interest, rent, payroll and utilities, or “other COVID-19-related expenses allowed by law” for no more than 2 months
- For the first 21 days of the program, MDA should focus on small businesses that did not get a PPP or EIDL from SBA, other federal assistance, or business interruption insurance
- After that initial period, any eligible business can apply
- Base payment of $1,500 but grant could be up to $25,000
- Companies can elect to either submit line item expenses or request $500 per employee
- The total payment shall be reduced, up to half, by the amount of PPP, EIDL, or business interruption insurance they received
- Grant funds are not taxable
- There is $40 million set aside for minority business enterprises certified by MDA
- MDA will issue further procedures and hire an administrator to assist with application review and approval
SBA Disaster Loan
Businesses can apply for the SBA Disaster Loan online HERE, but please read on BEFORE applying!
Items to collect before beginning the application process:
- Business EIN number
- Accountant contact information
- Insurance agent’s contact information and policy number
- Most recent federal tax return (preferably electronic format)
- 2019 year-end profit and loss statement
- Monthly break-down of sales and expense figures (pre-March 10th)
SBA Economic Injury Disaster Loan – EIDL
NOTE: The online system is busy, so if you decide to use online application, our greatest advice is get everything ready before applying. Print out the paperwork first, and fill it out, so when you DO apply online, there will be less chance for “timing out” and having to start over. Have all your items listed above collected and ready to go.
Since the system is busy, it is recommended to apply during off-peak hours, if necessary, which are 7:00 PM- 7:00 AM.
If you need further assistance or have additional questions, please contact the Disaster Customer Service Center at 1-800-659-2955 or, for people with speech or hearing impairments, call 1-800-877-8339 (Monday through Friday from 8:00 am to 8:00 pm Eastern Time) or email us at: disastercustomerservice@sba.gov.
Forms Needed
- SBA Counseling Information Form (SBA Form 641)
- SBA Disaster Business Loan Application (SBA Form 5)
- Things You Need to Apply
- Schedule of Liabilities (SBA Form 2202)
- Monthly Sales Figures (SBA Form 1368) —
- Personal Finance Statement SBA Form 413D)
- Fee Disclosure Form / Compensation Agreement (SBA Form 159D)
- Request for Transcript of Tax Return (Form 4506-T)
Tips on How to Apply for the EIDL from SBA
Industry Size Standards for Small Businesses
The CARES Act said the new forgivable loan program is for companies of up to 500 employees or industry standard size. The table linked below is the industry size standards for small business and as you can see many of them can be over 500 employees to qualify.
Back To Business Mississippi Grant Program
For more information, visit https://www.backtobusinessms.org/ Please note that MDA will never ask for credit card information. There is no fee to submit an application
What is the program?
Mississippi Development Authority is now accepting applications for the Back To Business Mississippi Grant Program signed into law by Governor Tate Reeves. The grants will be used to help businesses in Mississippi with 50 or fewer employees recover from the economic impact of COVID-19, including operating expenses and salaries.
Who is eligible?
- Must be a for-profit corporation, limited liability company, a partnership or a sole proprietorship
- Was domestic as of March 1, 2020
- Is in good standing with the Mississippi Secretary of State, if applicable
- Suffered an interruption of business
- Has a controlling interest owned by one or more Mississippi residents, whether individual resident citizens or Mississippi domestic business entities
- Filed Mississippi taxes for tax year 2018 or 2019, or, for an eligible business formed on or after January 1, 2020, intends to file Mississippi taxes for tax year 2020, unless exempt under Section 27-7-29, Section 27-13-63 or other applicable provision of law
- Has customers or employees coming to its physical premises, conducts business on customer premises, or has an owner who is an active participant in the day-to-day operations of the business
- Had no more than 50 full-time equivalent (FTE) employees as of March 1, 2020
- Is not a subsidiary of a business with more than 50 FTEs; is not part of a larger business enterprise with more than 50 FTEs and is not owned by a business with more than 50 FTEs
- Does not exist for the purpose of advancing partisan political activities, does not directly lobby federal or state officials as provided in Sections 5-8-1 through 5-8-23, and has not employed or otherwise worked with a lobbyist as defined in Section 5-8-3 in any way at any point during 2020
- Does not derive income from passive investments without active participation in business operations
What are eligible expenses?
- Payroll
- Rent
- Utilities
- Mortgage Interest Payments
- Other Eligible Expenses Incurred During COVID-19 Outbreak
For more information, visit https://www.backtobusinessms.org/ Please note that MDA will never ask for credit card information. There is no fee to submit an application
