Are you a small business affected by the COVID-19 pandemic? Sanford Area Growth Alliance-Chamber of Commerce Board Chair, Kelly Klug, and SAGA Existing Industry Manager, Jimmy Randolph, developed a guide to help you prepare for applying for the loan.
If your business is affected, you may be eligible to apply for a Small Business Administration loan of up to $2 million.
To apply for these loans, it is essential you gather critical information related to your business. This includes your federal Employment Identification Number, or Social Security number if you are a sole proprietor without an EIN. You will also need the date your business was established, business address and contact information for all management personnel — name, title, address,
phone number, date of
birth and SSN.
In addition to the basic information list above, you will need copies of your three most recent federal income tax returns, including all schedules. If you have not filed three, gather the ones you have filed. If you do not have this information, you
can complete IRS form 4506-T, a one-page form that can be found at www.irs.gov. You will also need to provide the SBA with a current balance sheet, dated within 90 days of your application. Additionally, a current personal financial statement (dated within 90 days) for each owner having a 20% or greater interest in the business is required. You may use SBA form 413 as a template, and SBA form 2202 as a liability worksheet. Both of these forms can be found at www.sba.gov. A copy of the most recent Federal Income Tax Return (including all schedules) for each owner having a 20% or greater interest in the business, and each affiliate (parent business, subsidiary, etc.). A signed copy of IRS Form 8821 for each owner and each affiliate (signed by authorized individual for the affiliate) is also required. And if your insurance policy covers part of your loss, include the name and telephone number of your agent, the policy number and the name of the insurance company.
For assistance, there are several place you can turn. The SBA Customer Service Email is email@example.com, and the SBA customer service number is 800-659-2955. Others willing to assist you are Senior Core of Retired Executives, the Small Business Technology Development Center, and the Women’s Business Center of North Carolina. If you need contact information for any of these organizations, please email me at firstname.lastname@example.org.
For the safety of our staff members, chamber members and other
visitors to the Sanford Area Growth Alliance, staff will be working from home. But we are still working for you! Please email or call if you need assistance. We are checking voicemails and emails as usual.
What can you do while you wait for an SBA loan to be approved?
We have five things we are encouraging you to do:
• First, call your local banker. They may be able to help you.
• Second, keep excellent records of all expenses related to COVID-19, as they may be needed for pandemic relief.
• Third, work on your business, rather than in it. For example, take that training you’ve been meaning to, but haven’t had enough time.
• Fourth, take a breath and take a step back. What advice would you give another business owner in the same situation? Maybe that would be good advice for you as well.
• Fifth, follow the Sanford Area Chamber of Commerce Facebook
page for all the latest
news and information, and please visit our COVID-19 Toolkit available at growsanfordnc.com/chamber/toolkit.
Please know that we are thinking of you, and working to get the most up-to-date information for our local businesses.