Navigating Disaster Relief Programs During COVID-19

Do You Qualify?

Bethany Barnes, Director of Business Development at Rapid Business Plans, is using her experience to help businesses navigate the process of applying for stimulus monies to keep them afloat through the pandemic crisis.

“I write business plans every day for people who are applying for SBA loans for their businesses,” Barnes said. “I know what banks are looking for and how to help them through the process.”

When Barnes realized the impact the coronavirus was going to have on the economy, she knew her skillset could

by Elizabeth Denham

help people try to weather the storm and stay in business.

“We are doing whatever we can to help,” she said. “We are sending out information, resources and links as we get them. Some people are great at doing it all themselves, and we guide them to resources. Others hire us to complete the process from start to finish and send their documentation to our Dropbox so that we can do all of the heavy lifting.”

The process Barnes takes people through is fairly simple. There is a questionnaire on her website to help you determine if you qualify. Credit is a factor in qualifying. If your credit score is below 640, she will recommend that you do not apply, and she will suggest other options. Once it is determined that you may qualify, Barnes will help you research what you qualify for in your state and through federal programs.

“We have been recommending businesses apply for as much as eight months of expenses,” Barnes said. “We think that is a reasonable timeframe to expect to be impacted by the crisis.”

“We have been recommending businesses apply for as much as eight months of expenses. Disqualifying Factors • Credit below 640 • An arrest within the last six months • Previous defaults on government loans Programs State Bridge the Gap Loans Programs vary from state to state, but in Florida, for example, you can apply for up to $50,000, 12 months, interest-free. This money would be paid back from proceeds from business interruption insurance or federal disaster assistance. Barnes can let you know what your state is offering. Federal SBA Disaster Loans – EIDL and PPP7(a) Loans Economic Injury Disaster Loan- The federal government has set aside $50 billion (possibly more in the future) in SBA disaster loans that you can obtain for your business or for personal disaster assistance. Low-interest loans up to $2 million are available at a proposed 3.75% rate amortized over up to 30 years. A credit score of under 640 will be immediately rejected and we cannot recommend applying. PPP- Provides up to two months of payroll, rent and utility expense that can be forgiven. If you have received an EIDL loan for different purposes, you are also eligible for this loan. If you have access to other traditional lending, you may not qualify for this program. Traditional SBA 7(a) Loans The CARES Act passed by Congress on Friday, March 27 has a provision providing six months of payments for all SBA 7(a) loans—existing and new—which are not deferments, but rather full payments of principal and interest to the lender for which the borrower will never be responsible again. For new SBA 7(a) borrowers, six months of payments of principal, interest and any associated fees beginning with the first payment due on the loan is available for new loans made within the first six months starting from the date of enactment (3/27/2020).

All in all, Barnes is helping people in whatever ways she can. She has done everything from sending out recipes to helping set up grocery delivery for people. She even helped an ICU nurse get set up with a trauma therapist.

“It’s important to look at ways we can help during this chaotic time,” she said. “I believe the franchise industry will be resilient, and these loans can help them get through the crisis. When they get through it, there will be more of the market share available to them, and they will come out stronger.”

For more information, visit www. rapidbusinessplans.com or text Rapid Business Plans office line at 904.999.3133.