Business Support

In addition to the ACA’s Business Resources Guide, Paycheck Protection Program infographic, webinars and other resources available above, here are the latest updates to the federal economic relief programs, PPP and EIDL.

Paycheck Protection Program and Health Care Enhancement Act

April 24, 2020

The Paycheck Protection Program and Health Care Enhancement Act was signed into law Friday April 24, 2020. The act extends funding for the PPP, EIDL and emergency grants. The new package breaks down into:

• $310 billion for PPP
• $50 billion for Economic Injury Disaster Loans 
• $10 billion for Economic Injury Disaster Grant cash advances

Paycheck Protection Program

April 24, 2020

Smaller lenders now have $60 billion specifically allocated for PPP loans are now approved lenders for the PPP loan with a designated $60 billion for loans. Insured depository institutions, credit unions and community financial institutions with assets that amount to less than $50 billion qualify to be lenders, in addition to the previously eligible 7(a) lenders.

Review of PPP loan files

April 28, 2020

The SBA and Department of the Treasury announced it will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender's submission of the borrower's loan forgiveness application.

More Questions?

May 19, 2020

The SBA and Department of the Treasury released frequently asked questions and an interpretation of the PPP Interim Final Rule on May 19, 2020.

VIEW FAQ

Economic Injury Disaster Loan

May 8, 2020

The SBA announced that at this time, it is only allowing agriculture businesses to submit new applications to receive the Economic Injury Disaster Loan. Applicants outside of agriculture businesses that have already submitted their applications will continue to be processed on a first-come, first-served basis. 

The SBA released a report on allocated disaster assistance funding, showing that more than $9.8 billion had been allocated as of May 8, 2020.

APPLY FOR EIDL

To see if your business is classified as a small business, see the SBA’s size standards here. 

For assistance, applicants can contact SBA’s Customer Service Center at 1-800-659-2955 or email disastercustomerservice@sba.gov. For additional help with the application process, contact your local Small Business Development Centers (SBDC) at www.azsbdc.net.

How do I calculate loan forgiveness on the PPP?

A borrower is eligible for loan forgiveness equal to the amount the borrower spent on the following items during the 8-week period beginning on the date of the loan’s origination:

• Payroll costs
• Interest on mortgage obligation incurred in the ordinary course of business
• Rent on leasing agreement
• Payments on utilities (electricity, gas, water, transportation, telephone or internet)
• For borrowers with tipped employees, additional wages paid to those employees

Due to high demand for PPP loans, a maximum of 25% of the loan amount used for eligible non-payroll costs is expected to be forgivable.

To calculate your loan forgiveness, use our loan forgiveness calculator.

Will a borrower’s PPP loan forgiveness amount be reduced if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer?

No. Laid-off employees whom the borrower offered to rehire (for the same salary/wages and same number of hours) are excluded from the loan forgiveness reduction calculation. The borrower must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower. Employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation.

The amount of forgiveness of a PPP loan depends on the borrower’s payroll costs over an eight-week period; when does that eight-week period begin?

The eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower. The lender should disburse the loan no later than 10 calendar days from the date of loan approval.

Under the Federal Reserve Act and U.S. Treasury and Federal Reserve Board, the Main Street Lending Program consists of the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF) and the Main Street Expanded Loan Facility (MSELF). Main Street loans are intended to facilitate lending to small and medium-sized businesses that are not eligible for the SBA Paycheck Protection Program. Principal and interest payments will be deferred for one year. The Main Street Lending Program loans are not eligible for loan forgiveness. A borrower may only participate in one of the loans under the Main Street Lending Program.

All loans have the following guidelines for eligible borrowers and lenders.

Who is an eligible borrower?

• Up to 15,000 employees
• Up to $5 billion in 2019 annual revenues
• U.S.-based businesses

Who is an eligible lender?

• U.S. insured depository institutions
• U.S. bank holding companies
• U.S. savings and loan holding companies

The Main Street New Loan Facility

What are the loan terms?

• 4 years
• Minimum loan size: $500,000
• Maximum loan size: up to $25 million or an amount that, when added to outstanding and undrawn available debt, does not exceed 4.0x adjusted 2019 EBITDA
• 5 percent risk retention

Main Street Priority Loan Facility

What are the loan terms?

• 4 years
• Minimum loan size: $500,000
• Maximum loan size: up to $25 million or an amount that, when added to outstanding and undrawn available debt, does not exceed 6.0x adjusted 2019 EBITDA
• 15 percent risk retention

Main Street Expanded Loan Facility

What are the loan terms?

• 4 years
• Minimum loan size: $10,000,000
• Maximum loan size: up to $200M, 35% of existing outstanding and undrawn available debt, or an amount that, when added to outstanding and undrawn available debt, does not exceed 6.0x adjusted 2019 EBITDA
• 5 percent risk retention

For more on the loan features, visit the Federal Reserve.

The Small Business Administration is supporting small businesses with debt relief options to provide financial reprieve during COVID-19. The SBA will:

• Pay the principal, interest and fees of CURRENT 7(a), 504 and microloans for six months
• Pay the principal, interest and fees of NEW 7(a), 504 and microloans issued prior to September 27, 2020.
• Provide automatic deferments until December 31, 2020  to Serviced Disaster (Home and Business) loans if the loan was in “regular servicing” status on March 1, 2020

SBA Lender Match
The SBA workers with lenders to provide loans to small businesses. The agency does not lend money directly to small business owners.  This system allows for competitive terms, counseling and education, and unique benefits. For additional SBA loans opportunities, the SBA Lender Search can be used by small businesses to match with SBA approved lenders through this portal.

Lenders found through the SBA Lender Match can assist with loans such as: 

• SBA 7(a) Loan - provides loans of up to $5M for borrowers who lack credit elsewhere. 
• SBA 504 Loan - provides loans of up to $5.5M to approved small businesses with long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization. 
• SBA Microloans - provides loans up to $50,000 to help small businesses start up and expand

SBA Express Bridge Loans

The Express Bridge Loan Pilot Program is for small businesses that already have a relationship with an SBA Express Lender to access up to $25,000. These loans are intended to help small businesses overcome the temporary loss of revenue and can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster Loan. If a small business has an urgent need for cash while waiting for a decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.

SBA Export Working Capital Program
Small businesses can apply for the SBA Export Working Capital Program loan to support their export operations. SBA provides lenders with up to a 90% guarantee on export loans as a credit enhancement, so that the lenders will make the necessary export working capital available.  

Scottsdale Small Business Stewards

Scottsdale IDA is partnering with the City of Scottsdale, Experience Scottsdale, Scottsdale Area Chamber of Commerce, Scottsdale Leadership, and the Scottsdale Charros on the Scottsdale Small Business Stewards grant program. Grants up to $5,000 are awarded to local businesses in the food and beverage, tourism, and healthcare sectors.

City of Mesa CARES Small Business Reemergence Program

The Mesa CARES Small Business Reemergence Program is a CARES Act funded grant program created and managed by the City of Mesa. It is designed to assist eligible Mesa businesses with up to 90 days of utilities and rent/mortgage payments and is aimed at those businesses who have experienced interruption caused by required closures. Eligible businesses must be located in Mesa, Arizona and have not received any funding through the Paycheck Protection Program or the Economic Injury Disaster Loans. Grant awards will be based on demand and funding available.

Applications will be available Monday, May 11, at 8 a.m. Applications are being accepted online only and will close Sunday, May 24, at 5 p.m.

U.S. Chamber of Commerce Save Small Business Fund

The U.S. Chamber of Commerce’s Save Small Business Fund is a grant offering short-term relief for small employers struggling during the COVID-19 outbreak. The grant is $5,000 and is first come, first serve. To qualify, the business must employ between three and 20 people, be located in an economically vulnerable community and have been harmed financially by the COVID-19 pandemic.

Salesforce Care Small Business Grant Program

Salesforce is offering $10,000 grants to U.S. small businesses to provide capital to help them weather this crisis. To be eligible to apply, companies must be a for-profit company, and have between 2 and 50 employees, been in business for 2 full years as of March 2020,  an annual revenue between $250,000 and $2 million and experienced challenges from COVID-19. Arizona applications open April 27 at 8 a.m. and close May 4 at 11:59 p.m.

Arizona Complete Health

Arizona Complete Health and Care1st have partnered to offer one-time, unrestricted general operating support grants to 501(c)(3), 501(c)(19), government entities or contracted AzCH/CAre1st providers. Award amounts vary. The grant application window closes Friday, May 8 at 5 p.m.

Better Business Bureau

BBB Serving the Pacific Southwest launched the Main St. Matters program to offer emergency grants in the form of $500 or $1,000 awards for businesses that have been financially impacted during the COVID-19 crisis. The grant is open to qualified small businesses that are in good standing with the BBB. Applications from all sized small businesses are accepted, but with a prioritization on businesses with 5 - 20 employees. The grant is open through the next four months.

Tucson Resiliency Direct Loan Program

The Tucson City Council authorized a $1,000,000 total contribution as part of the We Are One Resiliency Fund. Eligible businesses must be located within Tucson city limits, and have a valid City of Tucson business license or be registered with the Arizona Corporation Commission in good standing. Direct loans at 0% interest will be available to small businesses, sole proprietors, 1099 contractors and 501(c)(3) nonprofits that meet the eligibility criteria.

Growth Partners Arizona

Kiva Tucson crowdfunded loans

The Kiva Tucson loan is a no-interest, no-fee, community-backed business loan ranging from $1,000 to $15,000. Kiva determines the loan amount based on a variety of factors, including finances, social media presence and quality of narrative. Companies must be a legal business (excluding multi-level marketing businesses) at least 18 years old and not currently in bankruptcy or foreclosure. For more information, visit Kiva’s website or contact tucson@local.kiva.org.

Small Business Success Loan

Small Business Success Loans are for small businesses needing to borrow larger loan amounts for business growth and expansion, equipment, long-term working capital, tenant improvements and consolidation of more expensive debt. This loan ranges from $10,000 - $75,000 and is available to small businesses doing business in Arizona with annual revenue exceeding $50,000 with a minimum FICO score of 660 and have been in business for at least two tax filing periods. For more information, visit the website. 

Chicanos por la Causa Prestamos 

The Chicanos por la causa Prestamos division, a Community Development Financial Institution (CFDI), is offering a microloan of up to $25,000 for payroll, rent and monthly liabilities. There are no pre-payment penalties and the interest rate may be as low as 6.5 percent. Apply here.

Local First Arizona Foundation

The Graham & Greenlee County Micro-Loan program through the Local First Arizona, Freeport McMoRan and the Graham & Greenlee County Leadership Cohort, offers loans to local businesses in the Graham and Greenlee Counties to help them stay competitive. Businesses and startups in all industries located in Graham County or Greenlee County can apply for loans. Apply here.

PPEP Microbusiness & Housing Development Corporation (PMHDC)

PMHDC offers a range of microloans to small businesses in southern Arizona that reside in Yuma, Cochise, Santa Cruz, Pima, Pinal, Maricopa, Gila and Graham Counties. The loan amount is determined following a meeting with a business counselor. More information here.

U.S. Department of Agriculture Coronavirus Food Assistance Program (CFAP)

The USDA will provide up to $16 billion in direct payments to deliver relief to farmers and ranchers that face price declines and additional marketing costs due to COVID-19 through the Coronavirus Food Assistance Program.  

Funding is made available through the CARES Act which compensates farmers for losses due to price declines and specialty crops that spoiled from mid-January 2020 to mid-April 2020 and the Commodity Credit Corporation Charter Act to compensate producers for losses due to on-going market disruptions.

Who is eligible?

Non-specialty crops, wool, livestock, dairy and speciality crop producers that have faced a 5 percent or greater price decline and substantial marketing costs for inventories.

Guides

While the application process has not started, you can start gathering/understanding your farm’s recent sales and inventory. When the application opens, a payment calculator will be available. For now, refer to this video preview of the payment calculator. Upon application approval, producers will receive 80 percent of their maximum total payment and the remaining portion will be paid at a later date as funds remain available.

Application

Applications open May 26 and will close August 28, 2020. To apply, contact a FSA county office to schedule an appointment. Find your local FSA office here and scroll to the bottom of the page. While FSA offices are open by phone appointment only, staff will work with you via phone, email, fax, mail, or online tools to receive your application. 

CFAP FAQ

USDA Emergency Farm Loan

The Emergency Farm Loan program helps producers who suffer qualifying farm related losses directly caused by the disaster. Funds may be used to restore or replace essential property, pay all or part of production costs associated with the disaster year, pay essential family living expenses, reorganize the farming operation or refinance certain debts.

Paid Sick Leave and Child Care Leave Tax Credits

The Paid Sick Leave and Child Care Leave Tax Credits under the Families First Coronavirus Response Act are refundable payroll tax credits to immediately reimburse employers for the cost of providing coronavirus-related leave to their employees. Employers receive 100% reimbursement for paid leave, including health insurance costs. Employers will not face a payroll tax liability. Self-employed individuals may also receive an equivalent credit. 

Employee Retention Credit

The Employee Retention Credit through the CARES Act is a fully refundable tax credit for employers who have closed or partially closed due to COVID-19 and have not received a Paycheck Protection Program loan. This tax credit is 50 percent of qualified wages that eligible employers pay their employees, up to $10,000 per employee. The credit applies to qualified wages paid after March 12, 2020, and before January 1, 2021. The refundable credits are applied toward the employer portion of payroll taxes.

Federal Tax Extension

The U.S. Treasury Department has announced that the federal tax-filing deadline has been extended from April 15 to July 15, 2020. Individuals and corporations can also delay their tax payments for 90 days. Individuals can defer up to $1 million in payments for 90 days from the April 15 deadline.

Taxpayers have until July 15, 2020, to respond to the IRS to verify that they qualify for the Earned Income Tax Credit or to verify their income. These taxpayers are encouraged to exercise their best efforts to obtain and submit all requested information, and if unable to do so, please reach out to the IRS indicating the reason such information is not available. Until July 15, 2020, the IRS will not deny these credits for a failure to provide requested information. Visit the Internal Revenue Service for guidance on tax filing and payment deadlines, as well as additional resources at the Coronavirus Tax Relief page.

Arizona Tax Extension

In accordance with the extended federal tax return deadline of July 15, 2020, Governor Ducey has instructed ADOR to move the deadline for filing and paying state income taxes to July 15, 2020. Taxpayers submitting payments after the previous April 15th deadline will not be penalized. 

IRS People First Initiative

The IRS announced the People First Initiative to limit enforcement actions and postpone payment due under existing tools to enable taxpayers to pay taxes when they are unable to pay the full amount of their liability. The tools, Installment Payment Agreements and Offers in Compromise, are suspended and will not default, effective from April 1 to July 15, 2020. 

License Renewal

Governor Ducey issued an Executive Order on March 26 to help licensed professionals in Arizona stay licensed by deferring certain requirements for six months. State agencies and boards will defer requirements to renew licenses that have an expiration date between March 1, 2020 and September 1, 2020 by six months from the expiration date, unless those requirements can be completed online. Additionally, they will defer requirements to complete continuing education by six months, unless those requirements can be completed online. 

The order applied only to the following agencies or boards listed below: 

• Acupuncture Board of Examiners
• Department of Agriculture
• Arizona Board of Osteopathic Examiners in Medicine and Surgery
• Arizona Board of Technical Registration
• Arizona Medical Board
• Arizona Regulatory Board of Physician Assistants
• Arizona Board of Nursing
• Arizona State Board of Pharmacy
• Arizona State Veterinary Medical Examining Board
• Board of Athletic Training
• Board of Behavioral Health Examiners
• Board of Barbers
• Board of Certified Public Accountants
• Board of Cosmetology
• Board of Examiners of Nursing Care Institution Administrators and Facility Managers
• Board of Homeopathic and Integrated Medical Examiners
• Board of Massage Therapy
• Board of Occupational Therapy Examiners
• Board of Physical Therapy 
• Board of Respiratory Care Examiners
• Department of Environmental Quality
• Department of Insurance
• Department of Financial Institutions
• Department of Real Estate
• Department of Liquor Licenses and Control
• Naturopathic Physicians Medical Board
• Department of Public Safety
• Registrar of Contractors
• State Board of Chiropractic Examiners
• State Board of Dental Examiners
• State Board of Dispensing Opticians
• State Board of Funeral Directors and Embalmers
• State Board of Optometry
• State Board of Podiatry Examiners
• State Board of Psychologist Examiner
• Department of Transportation

Restaurants

All liquor licensing fees will be deferred in the 90 days following the March 31 announcement by Governor Ducey and the Arizona Department of Liquor Licenses and Control. This action provides financial relief to establishments and small businesses potentially facing the penalties of not being allowed to sell liquor or losing their license altogether.

Real Estate

Nearly 90 percent of the Department of Real Estate’s services, such as renewing or applying for licenses and filing complaints can be completed online through the Online License System or the Online ADRE Message Center. Licensees with upcoming expiration dates should search the ADRE public database for available online continuing education courses.

Banks are suspending evictions and foreclosures in Arizona

Governor Ducey announced on March 30 a cooperative agreement with the state’s banks to help protect small businesses and families. Banks agreed to suspend evictions and foreclosures for at least 60 days, and possibly for as long as Arizona is in a state of emergency. Additionally, most banks are working directly with consumers on payment deferrals for certain consumer loans and have also adopted a payment deferral program for business loans. This provides a lifeline for those facing eviction or foreclosure. 

Additionally, Arizona banks are working to deliver small business loans as part of the federal Paycheck Protection Program. Arizona banks are partnering with the Arizona Commerce Authority to proactively reach out to small businesses to help prepare them for the short application process.

Federal financial institutions

Federal financial institution regulators and state regulators are encouraging financial institutions to meet the financial needs of customers and members affected by the coronavirus. On Monday, March 16th, the federal bank regulatory agencies began encouraging banks to use the Federal Reserve's discount window to support households and businesses through short-term loans to banks, which in turn supports the flow of credit to households and businesses. Nearly all financial institutions serving U.S. consumers and small businesses have enacted policies to respond to the coronavirus outbreak. 

Bank Policies 

Bank of America is continuing to process applications for the Paycheck Protection Program in anticipation for additional funding from Congress. Additionally, Bank of America is offering support to its consumer and small business clients through the Client Assistance Program. 

Bank of America is continuing to process applications for the Paycheck Protection Program. Clients who have already submitted an application do not need to re-file a new application. Additionally, Bank of America is offering support to its consumer and small business clients through the Client Assistance Program.

Capital One is encouraging Congress to authorize additional funding to the Paycheck Protection Program and is continuing to accept and prepare applications for submission. Bank customers as of February 15, 2020 are eligible for a PPP loan through Capital One.

Chase is continuing to work through its Paycheck Protection Program application queue. The bank will continue monitoring the funding availability and may consider new applicants in the future. Chase is experiencing long call wait times and is encouraging online banking.

Citibank is processing applications for the Paycheck Protection Program that have already been submitted. It is not accepting new applications at this time.

US Bank is continuing to move existing PPP applications through the process. US Bank has additional loans and support for small business owners available.

WaFd Bank is not accepting new PPP applications at this time. All WaFd Arizona branches are offering small businesses affected by the coronavirus lines of credit of up to $200,000 interest-free for 90 days. The bank will also expedite the processing of new credit applications for companies in operation for at least two-years that demonstrate at least a ten percent revenue reduction due to the coronavirus. 

Wells Fargo is no longer accepting PPP loan applications.