DC Capital Connector, Small Business Funding Guidance and Webinar

441 4th Street, NW, Suite 850N Washington, DC 20001 • www.dslbd.dc.gov
DSLBD – DC Capital Connector
Free SBA Funding Guidance
April 30, 2020

DSLBD Presentation
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DSLBD Presentation
Opening Remarks
Director
Department of Small
and Local Business
Development (DSLBD)
Kristi Whitfield

DSLBD Presentation
WEBINAR AGENDA TODAY
***Please Keep Your WebEx on Mute to Eliminate Background Noise***
• Welcome Remarks
• Director Kristi Whitfield, Department of Small and Local Business Development
• Coping with COVID-19: Financial Tools & Resources to Help Small Business
• Nirav “Nick” Rajpara, Small Business Administration, Economic Development Specialist
• Best Practices When Applying For A SBA Loan Under CARES Act
• Mary L Makfinsky, National Sales Manager-Retail Business Banking at HSBC
• CARES Act and Other Considerations
• Timothy A. A. Stiles, COO & Partner at KPMG Spark;
• Kyle Gish – Manager at KPMG Spark; and,
• Zdravko Ivanov – Manager at KPMG Spark
• Q&A
• All Questions and Comments Should Be Submitted in the Comments on the WebEx.

DSLBD Presentation
DC CAPITAL CONNECTOR

DSLBD Presentation
Remarks
Project Director
DC Capital Connector
Fonta Gilliam

DSLBD Presentation
U.S. SMALL BUSINESS
ADMINISTRATION

DSLBD Presentation
Presentation
Small Business
Administration (SBA),
Economic Development
Specialist
Nirav “Nick” Rajpara

Coping with COVID-19
Financial Tools & Resources to Help
Small Business
202-205-8800
www.sba.gov/dc
@SBA_DCMetro
U.S. Small Business Administration (SBA)
Washington Metropolitan Area District Office
(WMADO)

Key Provisions of CARES Act
and Related Support
1. CARES Act: SBA Small Business Debt Relief
Program
2. Using Loan Payment Deferrals to Augment Cash
Flow
3. CARES Act: Paycheck Protection Program (PPP)
4. Economic Injury Disaster Loan (EIDL) Program
5. Entrepreneurial Mentoring and Coaching
Support
9WW_04/27/2020_5:30pm 18Washington Metropolitan Area District Office

• This program provides immediate relief to small businesses
with non-disaster SBA-backed loans, including 7(a), 504, and
microloans
• SBA will cover payments on these loans, including principal,
interest, and fees
• For the first six months on new loans taken out by
September 27, 2020
• For the next six months on existing, current SBA-backed
loans
• These provisions do not apply to the Paycheck Protection
Program (PPP) or Economic Injury Disaster Loan (EIDL)
Program
https://www.sba.gov/funding-programs/loans/coronavirus-
relief-options/sba-debt-relief 199WW_04/27/2020_5:30pm
CARES Act: Small Business Debt Relief
Program

Non-SBA Business Loans
• Borrowers can discuss with their banker/lender the option
to defer loan payments. The length of any deferment
would be determined by the bank or lending institution
• Financial regulatory agencies have issued a joint letter to
financial institutions, strongly recommending lenders
work with borrowers to offer loan modifications in
response to the COVID-19 pandemic
9WW_04/27/2020_5:30pm 20
Using Loan Payment Deferrals to
Augment Cash Flow

CARES Act: Paycheck Protection Program
(PPP)
• Loan Amount: Up to $10 million,
reflecting 2.5 times the firm’s
average monthly payroll costs
• Interest Rate: 1%
• Loan Forgiveness: Granted if 75%
or more of loan amount is used to
cover payroll expenses and staff
levels are maintained
• Loan Fees: None
• Use of Funds: Payroll costs, including
benefits; mortgage interest, rent, and
utilities
• Collateral: None required, no personal
guarantees needed
• Maturity: 2 Years
• First Payment: No payment required
for first six months
• Pre-Payment: No pre-payment
penalty
9WW_04/27/2020_5:30pm 21
Eligible
Entities
Small businesses, non-profits of any size (including religious
organizations), veterans’ organizations, Tribal concerns, and self-
employed individuals are all eligible. If the applicant is a business,
the concern must have fewer than 500 employees or be within
SBA size standards (www.sba.gov/size). Accommodations and
Food Services concerns (NAICS Code starting with 72) with more
than one physical site are eligible if fewer than 500 workers are
employed per location

Due to appropriated funding levels, the SBA is unable at
this time to accept new applications to the COVID-19
Economic Injury Disaster Loan (EIDL) program, including
EIDL Advances
Individuals who have already submitted their
application will continue to be processed on a first-
come, first-served basis. Applicants who have
received notification from the SBA that their loan
number begins with a “3” remain in the queue for
processing.
9WW_04/27/2020_5:30pm 22
The program description on the following slide
is for informational purposes only

Economic Injury Disaster Loan (EIDL)
• Loan Amount: Up to $2 million,
reflecting two months of average
monthly gross profits
• Interest Rate: 3.75% (2.75% for non-
profits)
• Use of Funds: to pay rent, mortgage
interest, utilities, payroll, fixed debts,
accounts payable and other bills
• Maturity: 30 Years
• Loan Fees: None
• Collateral:
• $25,000 or less – none required
• >$25,000 – lien on business assets
• Applicants will not be declined due
to a lack of collateral
• Personal Guaranty: Required
• First Payment: No payment required
for first year (12 months)
• Pre-Payment: No pre-payment
penalty
9WW_04/27/2020_5:30pm 23
Eligible
Entities
Small businesses, non-profits of any size (including
religious organizations), veterans’ organizations, Tribal
concerns, and self-employed individuals are all eligible. If
the applicant is a business, the concern must have fewer
than 500 employees or be within SBA size standards
(www.sba.gov/size)

Coping with COVID-19
Financial Tools & Resources to Help Small Business
• SBA-funded
Resource Partners
offer you FREE
one-on-one
business
counseling
sessions via
phone and video
• Business coaches
can help you
strategize
business solutions
• Specialists are
standing by to
assist you with
your business
loan application
SCORE
202-619-1000 (DC/MD/NoVA)
https://washingtondc.score.org/
Small Business Development Centers (SBDCs)
202-889-5090 (DC); 301-403-8300 (MD); 703-277-7703
(NoVA)
https://www.dcsbdc.org
https://www.marylandsbdc.org/locations/corridor-region
https://www.virginiasbdc.org/
Women’s Business Centers (WBCs)
202-393-8307 (DC); 301-315-8091 (MD); 703-768-1440
(NoVA)
http://www.dcwbc.org
http://www.marylandwbc.org
https://cbponline.org/who-serve/women/
Veterans Business Outreach Center (VBOC)
703-768-1440 (DC/MD/NoVA)
https://cbponline.org/who-serve/veterans/
9WW_04/27/2020_5:30pm 24
Entrepreneurial Mentoring & Coaching Suppor

25
Thank You
SBA-Washington Metropolitan Area District Office
www.sba.gov/dc
For SBA disaster loan assistance, please contact:
SBA Disaster Customer Service (available 24/7)
800-659-2955
disastercustomerservice@sba.gov
9WW_04/27/2020_5:30pm Washington Metropolitan Area District Office

DSLBD Presentation
HSBC

DSLBD Presentation
Presentation
Mary Makfinsky
HSBC Vice President
National Sales Manager-
Business Banking

HSBC Fusion- Retail Business Banking

What We Do
Fusion: Clarity, Control and a Dedicated Team
We understand that business owners are always thinking about their business and
that your business and personal lives probably blend together. With Fusion, our
business banking solution, we try to help you simplify and give you control with
competitive, easy to understand solutions. We pride ourselves in giving all customers
a dedicated relationship manager that will get to know you and help you achieve your
goals.

Small Business Credit- On your Mind Today- How do I Get Started?
Struggling to get started? The following questions might help point you
in the right direction. Do you need:
• Capital to cover the cost of retaining employees? Then the Paycheck
Protection Program might be right for you.
• A quick infusion of a smaller amount of cash to cover you right now?
You might want to look into an Emergency Economic Injury Grant.
• To ease your fears about keeping up with payments on your current or
potential SBA loan? The Small Business Debt Relief Program could help.
• Just some quality, free counseling to help you navigate this uncertain
economic time? The resource partners might be your best bet. WBC,
Score and Many others..

PPP loan and Other existing Loans
How does the PPP loan coordinate with SBA’s
existing loans?
Answer: Borrowers may apply for PPP loans and
other SBA financial assistance, including Economic
Injury Disaster Loans (EIDLs), 7(a) loans, 504 loans,
and microloans, and also receive investment capital
from Small Business Investment Corporations
(SBICs). However, you cannot use your PPP loan for
the same purpose as your other SBA loan(s). For
example, if you use your PPP to cover payroll for the
8-week covered period, you cannot use a different
SBA loan product for payroll for those same costs in
that period, although you could use it for payroll not
during that period or for different workers.

Types of Other Bank Financing Options
Term Loans
Term loans are often used when a
business needs to purchase equipment
or capital goods. Interest rates normally
remain fixed for the life of the loan, and
the length of the loan often depends on
the loan’s purpose.
Lines of Credit (LOC)
Lines of credit (LOC) are often used to
cover short-term working capital needs.
Unlike a term loan, which provides a
lump sum up front, a line of credit allows
businesses to withdraw funds as needed.
Credit Cards
For many businesses, credit cards are
an attractive form of short-term
financing. They can be particularly
convenient for making frequent
transactions or short-term purchases,
such as office supplies and business
travel. If paid off within a month, no
interest is charged.
SBA Loans
The U.S. Small Business Administration, or SBA, offers programs to help businesses that may not meet
conventional lending requirements. Though the SBA provides the financing, the loans are offered and
administered through banks. Interest rates normally are fixed for the life of the loan (Term loan rates are
fixed, revolving product is variable).

Creditworthiness for lenders is how likely a person or business will be able to pay back
borrowed money. – This is your story.
The assessments used are based on some of the following factors such as:
• Have you paid past financial obligations in full and on time?
• Has your spending been prudent and within your personal budget?
• Do your habits over time reflect financial responsibility?
• Have you or your business had the income and stability to support past and future debts?
• What will your business look like in the future. Know how to articulate it and why.
• Has your business been in existence and generating revenue for a few years? How have
you performed before Covid 19? How will your perform going forward?
• Do you have a history of follow through, such as staying at a job and building your
expertise? Your business plan should define this.
• The better your creditworthiness, the more likely it is that a financial institution will lend to
you money. The story is important.
PPP and Other SBA Loans are Great But How Does My Bank Fit it
and how do I qualify with them?

Our Local Partners
35
Community
Reinvestment
Fund USA
The Coalition For
Nonprofit Housing
& Development
INTERNAL

36INTERNAL
Here is the link to our fusion page: https://www.us.hsbc.com/fusion/

DSLBD Presentation
KPMG

DSLBD Presentation
Presentation
Manager
KPMG Spark
Kyle Gish
Manager
KPMG Spark
Zdravko Ivanov
COO
KPMG Spark
Tim Stiles

CARES Act and Other
Considerations
Invest Sou Sou and DC-DSLBD
April 30, 2020

40
© 2020 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Welcome & Introductions
• Kyle Gish, Manager, KPMG Spark
• Zdravko Ivanov, Manager, KPMG Spark
• Timothy Stiles, Partner, KPMG Spark

41
Things to consider
• IRS Filing Deadlines (Kyle Gish)
• NOL Provisions (Kyle Gish)
• R&D Credits (Zdravko Ivanov)
• Employee retention credit (Zdravko Ivanov)
• KPMG Spark (Timothy Stiles)

42
IRS Filing and Payment Deadlines
• July 15th, 2020
• C-Corporation tax returns due
• Individual tax returns due
• Non-profit tax returns due
• 1st and 2nd quarter 2020 payment due (individuals and C-
corporations)

43
NOL Provisions – Potential Refund Opportunity
• 5-year carryback available for NOLs arising in tax years 2018, 2019 or 2020
• Temporary repeal of taxable income limitation
• Claimed on Form 1045 or Form 1139 – due dates have been extended
• 2018 - June 30, 2020
• 2019 – December 31, 2020
• Election to waive the carryback available (irrevocable)
• Filing Methods (temporary):
• Fax Form 1139 to 1-844-249-6236
• Fax Form 1045 to 1-844-249-6237

44
R&D Credits
• Annual credit of up to $250K to offset payroll taxes (instead of income tax liability)
• Company has to be less than 5 years old
• Company’s gross receipts have to be less than $5M for that tax year
• Available for tax years beginning on or after 1/1/2016
• Has to be current year election (including extensions)
• Unused portion can be carried forward for 5 years
• You are able to begin offsetting payroll tax liability in the quarter after you file your tax
return
• Certain states allow similar benefits – please consult with a tax advisor

45
• Employee Retention Credit
• Refundable employment tax credit, up to $5K per impacted employee
• Credit is 50% of qualifying wages up to $10,000 (including health plan
costs) paid from 3/13/2020 until the end of the calendar year.
• Eligibility:
• Employers who fully or partially suspended operations during any
calendar quarter in 2020 due to COVID-19
• Employers who experienced a significant decline in gross receipts
during the calendar quarter
• Things to consider:
• Not available if company has received a PPP loan.
• Excludes wages for which a tax credit for paid sick and family leave
under Families First Coronavirus Response Act is claimed
• More than 100 employees (different limitations apply)

Accounting and
bookkeeping in the cloud,
what is it and why?
Prepared for DC-DSLBD Clients

47
A brief touch of history….
For well over 100 years, accounting and bookkeeping have been done in pretty much the same way
You
Gather
documents
Try to make
sense of the
information
Mold info into
a “submission”
format
File with the
IRS, banks,
and others

48
Small business challenges
DC small businesses
may require numerous
resources and support
mechanisms to help
them survive and
flourish – and they often
have key operational
questions
 What type of accounting/bookkeeping support
do I need?
 How do I generate financial statements?
 Do I need to register for or renew my business
license?
 What support is available to me to create a
budget?
 How do I track budget-to-actual expenses?
 What are the NY state and federal tax filing
requirements?
 Who can prepare my tax returns?
 Can I claim and R&D credit?
 And many others…..
KPMG SPARK is a cost efficient provider that can meet DC-DSLBD client accounting and tax needs – all the
while being supported by the reputation and strong global network of the KPMG brand.

49
A brief touch of history….
Paper and Pencil…………………..Excel Spreadsheets………………………DIY Software

50
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 841520
Meet KPMG Spark
 Spark is a software enabled, out-sourced, managed
accounting service
 Delivers real-time bookkeeping for small-to-medium
size businesses, startups, and non-profits
 Connects bank accounts, credit cards, invoicing, and
payroll seamlessly
 Provides real-time profit and loss statements and
balance sheets
 Files end-of year tax returns
 There is no software to learn or habits to change

51
How does it work?
5. Dedicated
account team
consults
7. Taxes
prepared
8. Focus on
your
business!
6. Auto-
reconciliations
& live
financials
1. Create your
Spark id
3. Data flows
in real time
4. Machine
learning
categorizes
transactions
2. Link your
accounts in
the cloud

52
Monitor your organization with the
Spark Dashboard

53
Spark support to DC-DSLBD clients
Spark Platform
Offering
 Real time bookkeeping
 Real time tax preparation
 Financial statement
preparation
 Account and statement
reconciliation
 Outsourced accounting
 Cash basis accounting
 Performance dashboard
 1099 preparation
 Data driven R&D tax credit
analytics
 Monthly informational
webinars
 Fixed asset depreciation
 Business license
registration & renewal
 Inventory management
 Payroll facilitation
 Budgeting tool
Unlike QuickBooks and others, Spark is NOT a DIY (do it yourself) platform

54
Run your business with confidence
Credible
Our data is pulled directly and securely from >20k financial institutions; we control the
process end-to-end so the data can’t be altered by third parties.
Auditable
Every transaction can be traced to a verified source and every action can be traced to
a user. Once a transaction is processed by Spark it is closed in real time.
Complete
Our ledger includes transactions from each financial institution used by the business
ensuring that no transactions are missed.
Consistent
Spark follows the same process and workflow so the outputs for every customer are
consistent allowing us to collect and compare data between clients and industry.
Secure
We're based in Salt Lake City and all bookkeeping, tax preparation, and engineering is
done in-house. We don't outsource any part of Spark or send data overseas for third
party fulfillment.

55
Our Startup Journey
Bookly founded in June 2013
Seed investment received in September 2013
Closed Seed Plus Investment in January 2015
Released proprietary bookkeeping platform in March 2015
Customers in every state across the US
Acquired by KPMG May 31st, 2018
Founder, Zach Olson, and Head of Strategy, Jon Walker, joined as part of the
acquisition

56
Special pricing for DC-DSLBD Clients
DC-DSLBD Pricing
Subscription start at $195 per month (excluding tax preparation)
Cash back: refund of 1 month’s subscription after one year
No hourly fees or long term contracts

57
Get Back to What You Care About
Moving forward, your accounting team will ensure your financials are up to date, payroll is
delivered, and taxes are filed. Allowing you to do more of what you love.
― Grow your organization to maximize the positive impact
you have and maximize financial results
― Lets you and your staff focus on more high impact
initiatives and less bookkeeping.
― Scale your efforts without the growing pains of accounting
― Allows you to focus on analysis of accounts and finances,
rather than data entry.
― Be proactive and strategic with tax planning and
compliance.
― Spark personnel reconcile amounts reported by your
financial institutions with your books and records - you
don’t have to waste valuable time with reconciliations.
― Up-to-date bookkeeping will allow you to be proactive not
reactive with your decision making.

Contact us
For more information, please contact:
help@kpmgspark.com or:
Stan Geniusz
stan@kpmgspark.com
Timothy Stiles
taastiles@kpmg.com
Kyle Gish
kgish@KPMG.com
Zdravko Ivanov
zivanov@kpmg.com

The information contained herein is of a general nature and is not intended to address the circumstances of any particular
individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such
information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on
such information without appropriate professional advice after a thorough examination of the particular situation.
© 2020 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
kpmg.com/socialmedia

DSLBD Presentation
• Moderator: Camille Nixon, Project Manager, DSLBD
• 202-741-0821 | camille.nixon@dc.gov | DCBusinessToolkit.com
• All Questions and Comments Should Be Submitted in the Comments Section
• The moderator will read questions for speakers’ response.
• Due to Time Restraints, Any Questions That Are Not Answered Will Be
Responded To Next Week
QUESTIONS & ANSWERS

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