Small Business COVID-19 Relief Options for Guam Businesses

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The Pacific Islands Small Business Development Center Network, partially funded by the U.S. Small Business Administration, offers Economic Injury Disaster Loans (EIDL) providing immediate economic relief to small businesses affected by COVID-19. Eligible expenses include working capital such as payroll costs, rent, and fixed debt obligations. The EIDL also features an emergency grant up to $10,000 per applicant, based on $1,000 per employee, with flexible repayment terms. To apply for EIDL, visit the provided SBA link.

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Small Business COVID-19 Relief Options DISCLAIMER: The Pacific Islands Small Business Development Center Network (PISBDCN) at the University of Guam School of Business & Public Administration is partially funded by a cooperative agreement with the U.S. Small Business Administration (SBA). All opinions, conclusions or recommendations expressed are those of the author(s)and do not necessarily reflect the views of the SBA. Requests for reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. Language assistance services are available for limited English proficient individuals with at least two weeks advance notice. For arrangements, please contact Laurine Sablan, P.O. Box 5014 Mangilao, Guam 96923, Tel: (671)735-2590, or Email sbdc@pacificsbdc.com. Services are extended to the public on a non-discriminatory basis.

Resources Available For Business Guam SBDC offers: a) FREE one on one counseling; Fred Granillo Jane Ray Angel Camacho-Paulino b) Trainings Start up / Business Management www.pacificsbdc.com

Economic Injury Disaster Loan (EIDL) Provides immediate economic relief to small businesses affected by COVID- 19 with direct disaster loans at a fixed low interest rate. Deadline to apply is December 31, 2020. Flexible repayment terms can be up to 7, 15, or 30 years. Loan amount can be up to $2M; No fees to apply. Eligibility a) Sole Prop, Independent Contractors, Self Employed, Private Non Profit Organizations, Veteran Organizations; b) Less than 500 employees; In certain industries that have more than 500 employees, have to check size standard for their respective industries;

Economic Injury Disaster Loan (EIDL) Use of Loan Proceeds Working Capital a) Payroll cost inclusive of benefits, such as healthcare b) Accounts payable c) Rent d) Fixed debt obligations e) Other bills that can t be paid NOTE: Funds cannot be used for refinancing existing debts; It does not cover lost sales/income.

Economic Injury Disaster Loan (EIDL) Special feature a) Emergency Grant UP TO $10K; b) Based on $1K per employee; c) Must have been in operation as of 01/31/2020; d) If application denied, applicant does not have repay funds from emergency grant; e) Grant proceeds have to be used toward payroll, to pay sick leave to employees, rent, or fixed obligations that can t be paid due to COVID- 19.

Economic Injury Disaster Loan (EIDL) To Apply: https://covid19relief.sba.gov/#/

Paycheck Protection Program (PPP) Provides incentives for small businesses to keep their employees on payroll. This is not a direct loan with SBA. Small businesses apply with your participating SBA Lenders on Guam; Special Incentive: a) Loan Forgiveness is available if employers keep all employees on payroll for eight weeks after receiving the loan; 75% of loan proceeds have to be used for payroll while 25% can be used for non payroll costs;

Paycheck Protection Program (PPP) Use of Proceeds a) Eligible Payroll cost i. Salary, Wages, Commission or similar compensation (cap at $100K); ii. Payment of cash tips or equivalent; iii. Payment on vacation, parental, family, medical, or sick leave; iv. Allowance for dismissal or separation; v. Payment required for group health care benefits, including insurance premiums; vi. Payment of any retirement benefits; vii. Payment of State and local tax assessed on the compensation of employees.

Paycheck Protection Program (PPP) Use of Proceed (Cont.) a) Following expenses in place on or before Feb 15, 2020 i. Interest on mortgage; ii. Rent; iii. Utilities; Only one PPP per borrower

Paycheck Protection Program (PPP) Exclusions a) Any compensation of an employee whose principal place of residence is outside of US; b) Compensation of an individual employee in excess of annual salary of $100K, prorated as necessary; c) Federal Employment Taxes imposed or withheld Employer and employee s share and income taxes required to be withheld from employees; d) Qualified sick and family leave wages for which a credit is allowed under Section 7001 and 7003 of FFCRA (Public law 116-127)

Paycheck Protection Program (PPP) To Apply: a) Complete loan application form: https://www.sba.gov/sites/default/files/2020- 04/PPP%20Borrower%20Application%20Form.pdf b) Payroll Information documentation IRS Form 941, W3SS, 1099 Misc. Quarterly Report; c) Other documents required by your financial institution d) Each lender will require different documentation, please contact your SBA lenders for more information.