Please speak with your local bank, accountant, and our office to discuss options and what is best for your business.  By understand your unique circumstances, we can properly guide you.


The program would provide cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans would be forgiven, which would help workers remain employed, as well as help affected small businesses and our economy snap-back quicker after the crisis. PPP has a host of attractive features, such as forgiveness of up to 8 weeks of payroll based on employee retention and salary levels, no SBA fees, and at least six months of deferral with maximum deferrals of up to a year. Small businesses and other eligible entities will be able to apply if they were harmed by COVID-19 between February 15, 2020 and June 30, 2020. This program would be retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls. Loans are available through June 30, 2020.

What are allowable uses of loan proceeds?


• Payroll costs (as noted above)

• Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums

• Employee salaries, commissions, or similar compensations (see exclusions above)

• Payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation)

• Rent (including rent under a lease agreement)

• Utilities

• Interest on any other debt obligations that were incurred before the covered period

Where should I go to get a PPP loan from?

Answer: All current SBA 7(a) lenders (see more about 7(a) here) are eligible lenders for PPP. The Department of Treasury will also be in charge of authorizing new lenders, including nonbank lenders, to help meet the needs of small business owners.  Please contact your financial institution or lender.



This program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law.  

What is a 7(a) loan and how do I apply?

Answer: 7(a) loans are an affordable loan product of up to $5 million for borrowers who lack credit elsewhere and need access to versatile financing, providing short-term or long-term working capital and to purchase an existing business, refinance current business debt, or purchase furniture, fixtures and supplies. In the program, banks share a portion of the risk of the loan with SBA. There are many different types of 7(a) loans, you can visit this site to find the one that’s best for you. You apply for a 7(a) loan with a bank or a mission-based lender. SBA has a free referral service tool called Lender Match to help find a lender near you.

I am unfamiliar with SBA loans, can anyone help me apply?

Answer: Yes, SBA resource partners are available to help guide you through the loan application process. You can find your nearest Small Business Development Center (SBDC) or Women’s Business Center here.


These grants provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.

What is an EIDL and what is it used for?

Answer: EIDLs are lower interest loans of up to $2 million, with principal and interest deferment at the Administrator’s discretion, that are available to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.

Who is eligible for an EIDL?

Answer: Those eligible are the following with 500 or fewer employees:

• Sole proprietorships, with or without employees

• Independent contractors

• Cooperatives and employee owned businesses

• Tribal small businesses

Small business concerns and small agricultural cooperatives that meet the applicable size standard for SBA are also eligible, as well as most private non-profits of any size.

How do I apply for an economic injury disaster loan?

Answer: To apply for an EIDL online, please visit Your SBA District Office is an important resource when applying for SBA assistance.



SBA Emergency Disaster Loans: On Saturday, Kansas’ Emergency Declaration for the COVID-19 crisis was approved by the federal government, making all Kansas small businesses eligible for the SBA Economic Injury Disaster Loans. Businesses can secure up to $2 million to help pay bills, continue payroll or continue operations during total shut-downs or partial operation as a result of the coronavirus outbreak. Businesses are encouraged to apply early and can deny funds if they are approved but not needed. The SBA has allow deferred payments on all existing SBA loans for 6 months and increased lending limits for its lending programs.  You may show the inability to obtain credit elsewhere.  The program is designed to provide businesses with immediate relief to help mitigate the impact of COVID-19 by providing loans of approximately 6 months of expenses AND debt service.

Maximum Loan:  $2,000,000

Interest Rate:  3.75% fixed interest for-profit and 2.75% fixed for non-profits

Term:  Automatic 30 year term with 12-month payment deferral (interest accrues)

Eligible Businesses:  Most eligible if they've been in business for 12 months or more, except farmers.  Program is unusual in that it does allow applications from residential rental real estate and commercial rental real estate companies, which are not eligible for SBA's regular program.  Also non-profits are eligible.  Note 1:  If there was a change in ownership that was less than 12 months ago, it should be eligible as long as the purchase was not after 1/31/2020.  Note 2:  For a business that is less than 12 months I would still recommend you have them call SBA-Wichita to see if there are any work arounds to help them.

Credit Elsewhere:  A denial letter is not required from the bank.  This is a deviation from the normal disaster program where it is a requirement.

Collateral:  If the amount of your potential loan is $25,000 or less then it will be a unsecured loan.  If your loan is greater than that it will be secured by a lien on business assets (excluding business real estate and personal residence/real estate holdings), a personal guaranty, and if applicable - an entity guaranty from any affiliate businesses the borrower is a majority owner in.  This is a deviation from the normal disaster program where real estate is the preferred collateral including personal residence.

Disbursement:  Depending on the amount approved, you will either receive a lump sum payment OR you will draw on the loan until you've reached the amount approved.  You only draw what you want, you don't have to draw it all.  This is a multiple advance term loan, not a revolving line of credit.

SBA Fees:  The only fees SBA has are its out-of-pocket closing costs to secure the loan, which may be a UCC and fixture filing for less than $50.

Timeline:  Approximately 3 weeks for approval.  Then business mailed a closing packet.  Once SBA receives a completed closing packet, disbursement anticipated in 5 business days.


This provision would provide a refundable payroll tax credit for 50 percent of wages paid by eligible employers to certain employees during the COVID-19 crisis. The credit is available to employers, including non-profits, whose operations have been fully or partially suspended as a result of a government order limiting commerce, travel or group meetings. The credit is also provided to employers who have experienced a greater than 50 percent reduction in quarterly receipts, measured on a year-over-year basis.

Please refer to your accountant for guidance.


This provision would allow taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022. Payroll taxes that can be deferred include the employer portion of FICA taxes, the employer and employee representative portion of Railroad Retirement taxes (that are attributable to the employer FICA rate), and half of SECA tax liability.  Please refer to your accountant for guidance.

The IRS announced all taxpayers will now have until July 15 to file their returns. People can still file their taxes by the original April 15 date if they are expecting a refund.



Housing Evictions & Utility Shut-Offs: The U.S. Department of Housing and Urban Development will suspend foreclosures and evictions for 60 days on properties with mortgages backed by the Federal Housing Administration (FHA) and Fannie Mae and Freddie Mac. Additionally, the FCC has encouraged all telephone and broadband providers to delay any service disconnections for at least 60 days. Governor Kelly has also mandated that all utilities under the jurisdiction of the Kansas Corporation Commission not disconnect utilities due to missed payments at this time.


Go Fund Me recognizes that small businesses are facing losses and financial hardships, and has created an initiative which includes $500 in matching grants to qualifying businesses that raise at least $500 on GoFundMe.


Families dealing with food and nutritional access issues can find more information on new benefits available HERE. These programs will be run by the state and apply predominantly to those who already receive SNAP and WIC benefits. The USDA has also allowed schools to offer meals outside of the school setting. Kansas has applied for and received the necessary Congregate Meal Waiver that allows for flexibility in school meal delivery. 



Community Small Business Zoom Meeting

Thursday, April 2, 2020


Small Business Relief Programs 101

Friday, April 3, 2020



Ellsworth County Economic Development created this initiative for local businesses affected by COVID-19 and facing financial hardships.


Employer Information
An employer/business owner may use Shared Work in lieu of a temporary, total layoff of employees. It allows for a partial workweek and partial unemployment benefits for employees. It is not available for seasonal layoffs. Information about program eligibility and an application to join the program follow.

A Layoff Alternative
The Employment Security (Unemployment Insurance) Shared Work Program is designed to help both employers and employees. It is an alternative for employers faced with a reduction in workforce and allows an employer to divide the available work or hours of work among a specified group of affected employees in lieu of a layoff. Shared Work allows the employees to receive a portion of their unemployment insurance benefits while working reduced hours.


The CARES Act, signed into law on March 27 provided temporary support for Americans workers impacted by COVID-19. It dedicates $250 billion to give workers more access to unemployment benefits during this public health emergency, including self-employes, contracted, and furloughed workers..



HIRE (Hospitality Industry Relief Emergency Fund)

The Kelly Administration has established the Hospitality Industry Relief Emergency (HIRE) Fund to provide bridge loans for Kansas’ hospitality sector during the COVID-19 crisis.




AFT’s Farmer Relief Fund will award farmers with cash grants of up to $1,000 each to help them weather the current storm of market disruptions caused by the coronavirus crisis.

  2020 by Stacie Schmidt in Response To COVID-19