COVID-19

Important Updates for Your Business

Attention Business Owners:

Here are three ways KOSBE TSBDC can help you navigate the COVID-19 pandemic:

  1. We can help you document your economic injury and explore ALL of your financing options (including whether you are eligible for the SBA disaster loan).
  2. If you are eligible, we can review the SBA disaster loan application and process with you, so you are fully prepared to submit your own request online (preferred) quickly and with ease.
  3. We can help you brainstorm ideas and develop a plan for recovery and resiliency for your specific business.

Thank you for your patience and understanding during this difficult time.




Is an SBA Disaster Loan not for You?

Here are some other sources of capital you can consider:

Facebook Small Business Grants Program

Lowe’s Commits $25 Million to Help Communities Impacted by Coronavirus Pandemic

Yelp’s COVID-19 Response and Support for Local Businesses


SBA's Definition of ECONOMIC INJURY

Here is what is meant by ECONOMIC INJURY for purposes of any loan to be provided, once the COVID 19 declaration is done for TN:

"Businesses can only seek assistance for economic injury (not physical damage) as a result of the incident [COVID 19].

Substantial economic injury occurs when a business concern is unable to meet its obligations as they mature or to pay its ordinary and necessary operating expenses.

Establishing economic injury is a comparison between the financial information from the period in the prior year to the injury period of the current year — this period must be associated to the [IMPACT OF COVID 19] and cannot be attributed to a downturn in local economy or other unrelated issues.

For example, if [employees are unable to work; or major conferences cancelled from which the business received revenues; or if a restaurant experiences substantial reduction in customers due to social distancing or because local or state officials are asking or ordering businesses to temporary close or reduce services (e.g., take out only)] and the business [will] not able to be re-established for two months, the business should consider how long it will take for things to normalize.

If it’s three months, the analysis [for a loan would] show the financial data for the same three months of last year and the anticipated financial data for the same period this year.

The loans are not intended to replace lost sales or profits, rather they are intended to pay fixed debts, payroll, accounts payable, and other expenses that could have been paid had the [IMPACT OF COVID 19] not occurred.

Analyzing a drop in sales, the length of time the business will be impacted, the type of business and typical business cycle of the industry, provides the SBA [loan officers] with the requisite data needed to determine if the economic injury is considered substantial."