The $2 trillion federal coronavirus relief package signed recently, officially known as the CARES Act, includes the nearly $350 Paycheck Protection Program to help small businesses affected by the Coronavirus Pandemic. The new loan program is designed to help small businesses with their payroll and other business operating expenses. The Small Business Administration (SBA) will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest. The SBA and the Department of Treasury have released the information that will guide the programs. To help entrepreneurs better understand how can they benefit from the program, we created the webinar in partnership with the SBA, Cambridge Trust and the law firm Nutter to answer questions including: Who are eligible for a Paycheck Protection Program loan? How do businesses apply? What information is needed? How much money can a business receive through the loan program? When will the loans be available? What’s the interest rate? What does the payment schedule look like? How does the Affiliation Rules affect VC-backed startup’s eligibility? Can the loan eventually be forgiven? What’s the eligibility for loan forgiveness? What if the PPP Loan does not cover a business’s needs? What are the other options under the CARES Act?

1. CARES Act:
What’s in it for Startups?
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3. Agenda
● Webinar instructions: Use the Introvoke Box to type in
Questions when we get to the Q&A portion
● Introduction of the speakers
● Overview of SBA Disaster Assistance for Small Business
● CARES Act - Paycheck Protection Program
● FAQ
● Other SBA programs to support small business
● Q&A

4. CARES Act:
What’s in it for Startups?
SBA: Norman Eng
Public Affairs Specialist at
U.S. Small Business
Administration (SBA)
Lender: Scott Chamberlin
SVP, Head of Innovation
Banking at Cambridge
Trust
Lawyer: Joshua French
Partner at Nutter,
McClennen & Fish LLP

10. FAQ
- Clarity on Affiliation rules for VC backed Startups
- What do I need to do to make the certification that “current economic uncertainty
makes this loan request necessary to support ongoing operations”?
- How do I show economic injury when my startup is pre-revenue?
- How does the forgiveness part of the loan work?
- What counts as payroll costs? Can wages from 1099 contractors be used in the
calculation of payroll? Our company only has 1 official employee. The others are
part time contractors.
- How long it will take for loans to roll out?
- What kind of documents/materials do I need to provide?

11. Economic Injury Disaster Loan
● Low-interest, long-term loan (not to exceed 30 years) for up to $2 million to
small businesses and nonprofits.
● The interest rate on EIDLs may not exceed 3.75% per year for small
businesses and 2.75% for non-profits.
● The first payment is deferred for 12 months.
Apply: https://covid19relief.sba.gov/

12. Emergency Economic Injury Grant
(EIDL Advance UP TO $10K)
● If you apply for that Economic Injury Disaster Loan – during the online
application process you will be prompted to request an “Economic Injury
Disaster Loan Advance” for UP TO $10,000 as part of the application.
● If approved for the advance you can receive the funds to pay for payroll and
other operating expenses; the advance amount only will be FORGIVEN.
● To access the advance, you must first apply for an EIDL and then request the
advance which does not need to be repaid.
Learn more HERE.

13. Small Business Debt Relief Program
● Provides immediate relief to small businesses with non-disaster SBA loans, in
particular 7(a), 504, and microloans.
● 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 (3/27).
Learn more HERE.

14. Express Bridge Loan
● Designed to supplement the Agency’s direct disaster loan capabilities and
authorizes SBA Express Lenders to provide expedited SBA-guaranteed
bridge loan financing on an emergency basis in amounts up to $25,000.
● A loan program for small businesses with an existing banking relationship with
SBA Express lenders as of the date of the disaster.
Learn more HERE.
Lenders list HERE.

15. Counseling & Training
● Small business owners needing a business counselor to help guide you
through this uncertain time can turn to your local Small Business
Development Center (SBDC)
● Center for Women & Enterprise, or SCORE mentor chapters. To find a local
resource partner, visit www.sba.gov/LOCALASSISTANCE

16. QUESTIONS?

17. Resources:
COVID-19 Resources
SBA Coronavirus Relief Options (any questions for SBA, email:
disastercustomerservice@sba.gov)
Nutter COVID-19 Task Force and Resources
Cambridge Trust COVID-19 Resources
The Capital Network COVID-19 Resources

18. Resources:
Paycheck Protection Program
Paycheck Protection Program Borrower Application Form
Paycheck Protection Program Information Sheet: Borrowers
SBA: PPP Interim Final Rule
SBA: Affiliation Rules for Paycheck Protection Program
SBA: Lender List to find Express Lenders
SBA: PPP Participating Lenders
Nutter: Steps Private Equity and Venture Capital-Backed Companies Should Consider
Taking for PPP Eligibility
Nutter: 3 Steps (and a Calculator) to Help Determine Forgiveness for Your PPP Loan

19. Our Commitment to Founders in These Challenging Times
Contact us: team@thecapitalnetwork.org
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your company on emergency funding, fundraising &
business growth.

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