Explanation of the financing options available from the CARES Act (3-27-2020) for small business - focusing on the music industry. Culture Collective - Jonathan Azu Red Road Advisory - Chris Van Noy

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NAVIGATING RELIEF AID FOR SMALL BUSINESSES
UPDATED: MARCH 28TH, 2020
Prepared by
Jonathan Azu // Founder Culture Collective
& Chris Van Noy // Business Advisor
www.cultureco.co

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Small businesses
$377 billion
CORONAVIRUS FINANCIAL
ASSISTANCE - SMALL
BUSINESS
FEDERAL DIRECT RELIEF
 Direct Stimulus Checks
SMALL BUSINESS
 PPP - Paycheck Protection Program
 EIDL - Economic Injury Disaster Loans
 SBA Express Loan Program
ADDITIONAL CARE ACT RESOURCES
 Loan Subsidies
INDIVIDUAL STATES RESOURCES
 California, New York, Tennessee, Georgia
FURTHER RESOURCES
 Unemployment
 Forthcoming Loan Subsidies
 Organizations to Contact

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 For Individuals with annual incomes under
$75k, Couples $150k
 $1,200 for each person, $500 for each child
 The amount decreased for individuals with
annual incomes between $75k - $100k, Couples
$150k - $200k
 Everyone eligible who has filed a 2018 tax
return. Amount could be based on 2019 filed
tax return
DIRECT STIMULUS CHECKS
Federal Direct Relief

4. CARES ACT PAYCHECK PROTECTION PROGRAM
 Cornerstone of CARES ACT to help small businesses keep their employees
 Amount: The lesser of $10M and 2.5 times the average monthly payroll costs for the
year (not including individual compensation of over $100k)
 No Collateral, No Personal Guarantee
 Interest: not over 4%
 What Can it Be Applied To: Most employee-related expenses (payroll etc.), interest
payments on mortgages, rent, utilities and interest on existing debt.
 Forgiveness: Applicable costs in the first 8-week period can be forgiven. The remainder
of the loan will on a 10 yr. term at a max 4% interest
SMALL BUSINESS
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5. SBA ECONOMIC INJURY DISASTER LOAN PROGRAM (EIDL)
 As part of CARES ACT, the SBA has expanded their EIDL program to most
organizations under 500 people including individuals and sole proprietors
 Amount: up to $2M
 EIDLs that are smaller than $200,000 can be approved without a personal guarantee.
 Interest: 3.75% for small businesses and 2.75% for nonprofits. Term up to a maximum
of 30 years.
 What Can it Be Applied To: Accounts payable, debts, payroll and other bills the
coronavirus has affected your ability to pay..
 Forgiveness: A $10k emergency grant cash advance can be forgiven if spent on
payroll, paid leave, increased supply chain costs, mortgage or lease payments
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SMALL BUSINESS

6. SBA (7A) EXPRESS LOAN PROGRAM
 Provides loans up to $350,000 (now expanded
to $1,000,0000) for no more than 7 years with
an option to revolve.
 There is a turnaround time of 36 hours for
approval or denial of a completed application.
 The uses of proceeds are the same as the
standard 7(a) loan (accounts payable,
debts, payroll).
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SMALL BUSINESS

7.  Provides $150 billion to states to use for expenditures incurred due to the coronavirus
 California Eviction Moratorium - went into effect on March 27 and is valid through May 31, 2020
 Unemployment Insurance (UI) Work Sharing Program - Work Sharing is a program available to
employers who reduce employee wages and hours as an alternative to layoffs.
 Tax Reporting Delay - 60-day extension to file your state payroll reports and/or deposit state
payroll taxes without penalty or interest.
 Proposals (not enacted yet)
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 90-day grace period for all mortgage payments
 Relief from bank fees and charges for 90 days
 No new foreclosures for 60 days
 No credit score changes for accessing relief
INDIVIDUAL STATES RESOURCES (CA as an example)

8. The act expands unemployment
benefits by 13 weeks and adds $600
to the weekly amount an individual
would usually receive.
UNEMPLOYMENT
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9. (Sec. 1107) Appropriates $17 billion
for loan subsidies to cover 6 months of
payments for small businesses with
existing loans
ADDITIONAL FORTHCOMING PROGRAMS
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10.  Culture Collective - Questions
(info@cultureco.co)
 Nashville Songwriters Association
(https://www.nashvillesongwriters.com/relief-self-
employed-songwriters-musicians-and-support-teams)
 Service Corps of Retired Executives (SCORE)
Coronavirus Small Business Resource Hub
(www.score.org/coronavirus)
 Small Business Administration Loan Program
(https://sbaloanprogram.com/paycheck-protection-
program)10
FURTHER RESOURCES

11.  New York State Website
(https://www.dfs.ny.gov/consumers/coronavirus)
 California State Website
(https://business.ca.gov/coronavirus-2019/)
 Georgia State Website
(https://www.georgiasbdc.org/georgia-small-
business-recovery/)
 Tennessee State Website
(https://www.tn.gov/commerce/news.covid-19.html)
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FURTHER RESOURCES

12. THANK YOU
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