League Business Resources
COVID-19 Updates and Recommendations
Here are some resources to help leagues keep your business running and communicate with your members and community during the COVID-19 pandemic.
COVID-19 Best Practices & Resources – PR & Crisis Management for Roller Derby Leagues
A guide for roller derby leagues to manage their communications with league members and community provided by Rachel Rotten (aka Rachel Johnston, Publicist & Vice Prez & Senior Account Director at Rebellious PR & Consulting).
CARE Act Information
- What it is
Emergency help for U.S. small businesses with loans and grants based on the Covid-19 pandemic. The loans and grants are going to be administered through the U.S. Small Business Association (SBA).
- Who is Eligible
- For profit and non-profits with less than 500 employees–full or part-time–and in some cases seasonal or regular independent contractors. For seasonal and independent contractors, you will need to show that this is how the business regularly operated with these. Make sure you aren’t disclosing potential unlawful employment practices in your applications.
- You cannot have already applied for SBA loans to help with your payroll or expenses during the dates 2/15/20-6/30/20.
- For EIDL, you need to suffer substantial economic injury as a result of a declared disaster, regardless of whether physical damage is sustained.
- Main Points
- The CARE Act expands the SBA Section 7(a) Loan Program and Economic Injury Disaster Loan (EIDL).
- Section 7(a) loans are intended to help pay payroll, rent, employee benefits, utilities, and interest on preexisting debt (“Covered Obligations”). In order to be “Covered” it must be an obligation that existed prior to February 15, 2020 (i.e. you can’t go hire people or increase salaries now, or buy a warehouse now, and then apply for the loan).
- The 7(a) loan has a 10 year term. The interest rate on the SBA Loan cannot exceed 4% and interest is deferred for a year. No prepayment penalty.
- Loan Forgiveness – (only for 7(a) loans – not for EIDL) the amount eligible for forgiveness is the amount of the loan to pay “Covered Obligations” The amount of forgiveness you are eligible for will decrease if you start furloughing employees or reducing salaries.
- At least 75% of the money to be forgiven must have been spent on employee wages (the purpose of the act is to encourage businesses to keep employees).
- Keep in mind that the max forgiveness cannot exceed the principle. So with a loan at 3.25% interest, you will still owe whatever interest accrues if the full amount of the loan is forgiven. In effect, if granted full forgiveness, you will have had to pay 3.25% of what these Covered Obligations would have cost you during the time of your loan.
- The amount of the loan will not be counted as gross income.
- No personal guarantees are required.
- EIDL loans are slightly different.
- The EIDL loan has up to a 30 year term. The interest rate is 3.75% for small businesses and 2.75% for nonprofits.
- The loan can be used to repay fixed debts, payroll, accounts payable, and other bills that could not have been paid had the disaster not occurred.
- Loans can be up to 2 million. Any loan over $25k requires collateral.
- EIDL also has an emergency grant of $10k as an advance on the EIDL loan that does not need to be repaid if the EIDL loan is denied. Otherwise it is just deducted from the amount of loan that is granted. Emergency grants are to be distributed within 3 days.
- Documentation Needed to Apply
- Where to Apply
- For the 7(a) loans you can apply through SBA lenders. Any major bank near you is likely an SBA lender. Each lender is going to set up their own way of applying for it. Check with the banks nearby and who you want servicing you.
- For the EIDL loan apply online.
- Other Things to Keep In Mind
- You cannot apply for both the SBA and EIDL loans to pay for the same things.
- This bill was rushed so it isn’t yet very clear on certain points, such as certain calculations of max benefits, or how banks are going to implement the programs because they also are learning about it in real time, just like us.
- You will have to keep an eye out on updates but funds are limited so the sooner applied for, the better.