COVID-19 Resources

Helpful Links:

 

  • For a comprehensive guide in navigating the SBA Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP), please visit icagroup.org/covid-19/relief/

 

 

 

  • Home Care Association of America's Coronavirus resource page is a comprehensive and up to date resource that is available to all home care agencies during this crisis.  You can access the resource page here: hcaoa.org/documents/coronavirus-resources/

Communication Templates:

Economic Injury Disaster Loan (EIDL):

  •  Cooperatives with less than 500 employees (not members) are eligible.

  • During the application, even though you will indicate that you are a cooperative on an earlier screen, the application still requires you to enter the names of up to 5 "business owners." This section indicates who in the cooperative is authorized to apply for a loan, and does not imply a personal guarantee for the loan. The "Business Owner Information" section asks for an SSN. An ITIN may be used instead of an SSN. Loans under $200K do not require a personal guarantee. If you believe you will need more than $200K, please reach out to us directly. 

  • If your cooperative has more than five members, one member of your cooperatives, preferably the President or a member of the Board of Directors, should fill out the "Business Owner Information" section. When you submit your application, there will be an option to upload documents to support your application. The SBA recommends submitting an addendum that explains the cooperative ownership structure of your company and documentation authorizing the filing member to fill out the application on behalf of the cooperative. Not all SBA employees are familiar with the structure of a cooperative and have an explanation of your company's structure could cut down on processing time. The cooperative should also keep a resolution of the board on file that documents the filer is authorized to apply for the EIDL.

  • During the application, there is a check-box where applicants can indicate that they would like a $10K advance to remain in operation during the consideration of their loan application. Regardless if a business is approved or denied, this advance, which has a high potential to be a grant, will be processed as soon as your application is reviewed. The advance can be "up to $10K," meaning that your cooperative's need will be assessed based on the information provided. 

  • The loan can only be used for working capital: Accounts Payable/Rent/Payroll, etc. 

  • The Small Business Administration (SBA) is the direct loan servicer.  

 

The application takes approximately 2 hours, and you do not need to provide financial documentation to complete the application. However, you should provide as much of the following information as possible to expedite a decision on the loan. If information is missing, you will be contacted and asked to provide it, further delaying your access to funds. 

  • Most recent Federal Tax Return

  • Year-End (2019) Profit and Loss Statement

  • A current Year-to-Date Profit and Loss Statement

  • Monthly breakdown of sales figures

 

The SBA-800 number is now open 24/7: 800-659-2955

 

Prompt completion of the application increases the chances of your cooperative receiving funds, including the $10K advance, before the loan's resources are exhausted.  

Paycheck Protection Program (PPP)

This loan is intended for businesses with 500 or fewer employees to maintain staff and fixed employment costs for eight weeks. PPP does not require collateral or personal guarantees and has a high potential to be forgiven. 

 

The U.S. Small Business Administration published an interim rule making clear that many cooperatives are eligible for the Paycheck Protection Program established under the CARES Act, the historic $2 trillion stimulus bill

 

The interim rule indicates most sectors of the cooperative community will be able to access Paycheck Protection Program loans, including agriculture, purchasing, consumer food, and worker cooperatives. It is not clear whether other sectors will be eligible for this rapidly evolving program.

 

PPP loans are issued through private lending institutions and are 100% guaranteed by SBA. If a borrower meets certain requirements, including maintaining payroll employees, much of the loan can be forgiven. Importantly, PPP loans do not require a personal guarantee.  PPP loans may be issued by private lenders through June 30, 2020.

 

You can find an eligible lending institution near you by visiting:  sba.gov/paycheckprotection/find .

 

If your co-op is ineligible for a PPP loan, you can still qualify for an Economic Injury Disaster Loan, for which all cooperatives are eligible. 

Families First Coronavirus Response Act

We have received word that home care agencies are (at least for the time being) exempt from the paid leave requirements of the Families First Coronavirus Response Act.  This exemption is optional, and home care agencies are still encouraged to participate to minimize the spread of the virus (for a detailed analysis see: leadingagemn.org/news/department-of-labor-defines-health-care-provider-exempted-under-families-first-act/ and hcaoa.org/assets/1/6/DOL_Guidance_on_Health_Care_Providers.pdf.

 

While home care agencies were originally impacted by the act, rapid advocacy by state and national home care associations led to the change. It is important to note that there are currently efforts underway to eliminate these exemptions. As such it is in every cooperatives best interest to consider the potential impacts of such a change and any actions that would need to be taken. 

 

Lastly, if you would like assistance preparing your loan application, please contact Leslie Mead, who will direct you to a TA provider. 

Cooperative Development
Foundation

1775 Eye Street NW, 8th Floor
Washington, DC 20006

Email: info@cdf.coop

Phone: 202-442-2302

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