We wanted to provide our clients guidance on a loan program offered by the State of Delaware to assist with the financial hardships created by the COVID-19 pandemic. Governor John Carney announced Hospitality Emergency Loan Program or HELP to provide financial relief for restaurants, bars and other hospitality industry businesses.
Here’s what you need to know:
Loans up to $10,000 per applicant.
Annual revenue must be less than $1.5 million.
Businesses must have been in operation for at least a year
0% loans, with a 10-year term with payments deferred for nine months.
Eligible uses are to fund rent, utilities and other unavoidable bills, but cannot be used for personnel costs.
Eligible expenses being submitted for funding must have been paid on time for 80% of payments over the last 12 months and cannot be past due on the most current bill.
Applicants for HELP loans must be operating in one of the targeted sectors as identified by the following NAICS codes:
7225 Restaurants and Other Eating Places
7224 Drinking Places (Alcoholic Beverages)
7223 Special Food Services
7211 Traveler Accommodations
7139 Other Amusement and Recreation
7131 Amusement Parks & Arcades
7121 Museums and Historical Sites
7113 Promoters of Performing Arts
7112 Spectator Sports
7111 Performing Arts Companies
4879 Scenic and Sightseeing Transportation, Other
4872 Scenic and Sightseeing Transportation, Water
4871 Scenic and Sightseeing Transportation, Land
3121 Beverage Manufacturing
3118 Bakeries and Tortilla Manufacturing
https://business.delaware.gov/wp-content/uploads/sites/118/2020/03/Hospitality-Emergency-Loan-Program-Application_NEW.pdf
Notable Federal Programs
Economic Injury Disaster Loan Program: Now available to small business owners in all 50 U.S. states and territories to apply for a low-interest loan.
Lender Match is a free online referral tool that connects small businesses with participating SBA-approved lenders.
90 Day extension to July 15, 2020 to file and pay returns due April 15, 2020.
https://www.sba.gov/funding-programs/disaster-assistance