@Tom - CARES Act, SBA EIDL Loans, and Daycare

[tn0087]

Hi Tom,
This may be more nuanced than you can touch on in a forum post, but I am curious your thoughts around home daycares pursuing the SBA's Economic Injury loan as a result of coronavirus impacts.

My home daycare has had two enrolled children terminate services due to the parents being out of work and not able to continue to pay for care in the interim. Depending on the duration, the remainder of children are in danger of following the same pattern.

If all enrolled children leave care due to parents being home and unable/unwilling to continue with payment, should this be considered as a valid reason to pursue the SBA loan in search of relief to support my wages and mortgage and insurance payment support? The daycare will technically not be closed, so I don't believe unemployment will be an option, but realistically I don't anticipate an uptick in enrollment to cover the losses.

Thank you!

[AmyKidsCo]

I'm also interested in your opinion. I haven't had a major loss of income - yet - but the SBA would be helpful now for utility payments and health insurance premiums.

[TomCopeland]

SBA loan/grant program

Hi Tom,
This may be more nuanced than you can touch on in a forum post, but I am curious your thoughts around home daycares pursuing the SBA's Economic Injury loan as a result of coronavirus impacts.

My home daycare has had two enrolled children terminate services due to the parents being out of work and not able to continue to pay for care in the interim. Depending on the duration, the remainder of children are in danger of following the same pattern.

If all enrolled children leave care due to parents being home and unable/unwilling to continue with payment, should this be considered as a valid reason to pursue the SBA loan in search of relief to support my wages and mortgage and insurance payment support? The daycare will technically not be closed, so I don't believe unemployment will be an option, but realistically I don't anticipate an uptick in enrollment to cover the losses.

Thank you!

You can apply for unemployment and you are eligible for the SBA loan/grant program. You can do both.

[Alwaysgreener]

SBA loan? How does this work? Why would I apply?

[TomCopeland]

Sba

SBA loan? How does this work? Why would I apply?

Apply for the Paycheck Protection Program through your local SBA office.

[Red]

SBA Loan/Grant

Hi All, I just spoke with a representative from my local credit union and they are a participating lender taking SBA loan applications for the Disaster Loan Assistance program. They will call me back early next week to do the application. Maybe your bank/credit union is participating too. I read that it is a forgivable loan if you show proof that you use the funds for mortgage, payroll or overhead costs related to the business. I hope this helps a little!

[Firefly]

Is the Paycheck Protection Program just for daycares with employees?

[Alwaysgreener]

Is the Paycheck Protection Program just for daycares with employees?

Yeah how do I prove that I paid myself, since l don't have any employees?

[TomCopeland]

Paycheck Protection Program

Is the Paycheck Protection Program just for daycares with employees?

No. You can use your lost profit as "payroll" for this program. I'll be writing about this in the next day or so on my website: www.tomcopelandblog.com