Small Businesses Sticking Together

Last updated April 12, 2020

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It’s an understatement to say that this is a tough time for small business owners -- and a time when we need to stick together.  We’ve teamed up with Together (Apart), a small business alliance which gives a 20% discount to customers with 5% donated to Feeding America with universal code, TOGETHERAPART. Thank you for all your support so far! If you have an online store and are interested in getting involved, We are welcoming more brands to join! Please email info@whimsyandrow.com to be part of our Small Business Alliance.

We’re also staying on top of the CARES Act to help keep small business owners in the loop. While the act offers a lot of loans, most of us little guys need grants right now -- cash that doesn’t need to get repaid.  Luckily, those are part of CARES. 

Here’s what you need to know if what you need is a grant (though loans are available, too!):

IF YOUR 8-WEEK PAYROLL IS MORE THAN $10,000:

Payroll Protection Program (PPP)

  • The Payroll Protection Program offers grants for up to 8 weeks of your payroll costs. 

  • All you have to do is show evidence that you spent the money on payroll, and your loan will be forgiven. Good deal!

  • You can apply for this grant even if you’re a freelancer.  You just need to show evidence of your self-employment income (e.g. invoices / receipts).

How do I get PPP?

  • First, contact your business banker to find out if they are participating:

    • Here is a list of lenders (compiled by a small business friend, founder of OmieLife) as of April 6, 2020, including those that are accepting applications from non-customers.

    • More local lenders who are participating can be found here.

    • We’ve had a good experience with First Republic Bank.

  • If your bank is not giving loans, we’ve identified three national business lenders who will be accepting applications from businesses that are not existing customers -- as of this writing, none are accepting applications yet, but we will update this post as soon as they are!

    • Harvest Small Business Finance — a national small business lender. Once you have submitted, email Michael Sanchez, Senior Vice President at msanchez[at]harvestcrf.com with your name, business name, phone #, loan amount & date submitted. In the comments of the loan application, include “Michael Sanchez” so that he can track your loan status. The minimum loan amount is $20,000.

    • Huntington Bank -- the nation’s largest small business lender.

    • Kabbage is also planning to offer loans and has a user-friendly interface.

  • Here’s what you will need to apply for PPP:

    • Jan - Dec 2019 payroll reports, including wages, payroll taxes, and benefits paid.  If you are a freelancer, collect your income receipts from that timeframe; including 2019 1099-MISC paid to any independent contractors. 

    • PPP application. Calculate the total for which you will apply, which is 2.5X your average monthly gross payroll, taxes, and benefits expenses for 2019.

    • IRS Form 940 for 2019 or IRS Forms 941 for 2019.

    • Articles of incorporation.

    • Other required documentation may depend on the lender -- Kabbage is a good example!

  • Funds are available on a first-come, first-served basis. Worried that funds may have already run out, or that someone else needs it more?  Apply anyway. Congress will most likely keep authorizing funds, so don’t give up!

  • Questions about PPP?  This is your definitive source of answers.

  • Got 35 minutes? This webinar gives you the nitty gritty about the PPP payback conditions, setting up a separate bank account for the PPP funds, and more.

IF YOUR 8-WEEK PAYROLL IS LESS THAN $10,000

Economic Injury Disaster Loan (EIDL)

  • This gives you an immediate forgivable loan of $10,000 that can be used on most business expenses.

  • You can apply for up to $2M in loans for through the program, but only the first $10,000 is guaranteed to be forgiven.

  • You can apply here.

  • You can apply for both EIDL and PPP, but the PPP loan will be subtracted from your loan forgiveness amount, so it only makes sense to apply for one or the other if you need a grant, not a loan.

Of course, if you are comfortable taking on debt, you can apply for up to $2M through EIDL -- it has a 3.75% interest rate and you’ll have 30 years to repay it. You can apply here.

We are sending all our small business friends good vibes and good luck -- together we’ll get through this!

*We will update this blog post as we learn more.