55 small business owners from Maui and Neighbor Islands tuned in on November 10 to Maui Biz Assist webinar, Pathways to Recovery, to hear about funding opportunities for their small businesses. Presented by Maui Economic Development Board (MEDB), the free webinar featured guest speakers Wayne Wong, Director, Hawaii Small Business Development Center (SBDC) and David Daly, Director of Business Development, Maui Economic Opportunity (MEO).
The webinar is the 9th of MEDB’s business assistance series and provided an update and overview of the funding opportunities available to small businesses of Maui County.
Wayne Wong spoke on the new round of funding with the Economic Injury Disaster Loan (EIDL) program and answered questions for those applying for the first time, as well as those seeking further assistance. The EIDL is a loan direct from SBA (Small Business Administration) with low-interest and long-terms to help small businesses overcome the effects of the pandemic by providing working capital to meet operating expenses.
“EIDL programs will be ending December 31 and means disbursement must be completed by that date,” shared Wong. “It takes four to 6 weeks to get approval so what that means is you need to get applications in as soon as possible.”
Responding to pre-webinar queries on the availability of the Paycheck Protection Program (PPP), Wong added, “PPP has now been ended but forgiveness is still available for those who successfully received a loan – the deadline for forgiveness is 10 months after the qualifying period.”
David Daly spoke on MEO’s Maui Agricultural Micro Grant Program for operating farms on Maui, Molokai and Lanai. “The main focus from the County for this particular micro grant is to help underserved farms that are not eligible or unable to acquire any grant funds from larger institutions like the USDA or the FDS,” said Daly. “Grant funds go up to $25,000 and the criteria are food producing farms.”
Gary Albitz, Business Consultant with MEDB, moderated the Q & A session which helped listeners clarify how the loans applied to their situation. All speakers shared valuable links and instructions to apply for the various programs.
“This webcast very thoroughly answered all of my questions about EIDL, which has been helping my small, woman-owned tech business pivot,” said Hadley Gustafson of Honeycomb Media LLC. “Knowing that the deadline is December 30 is especially helpful too.”
The impact of COVID-19 has changed how most small businesses do business. The Maui Business Assistance Series, supported by the County of Maui, aimed at helping small businesses of Maui County navigate the resources available to them to recover and thrive. Future topics will be explored to adapt to the changing landscape as we pull together to meet the challenges facing all of us.
The webinar is the 9th of MEDB’s business assistance series and provided an update and overview of the funding opportunities available to small businesses of Maui County.
Watch the Replay
Q & A
Q: Does the EIDL still have the forgiveness program of $10,000?
A: EIDL (loan) never has had any forgiveness component. There is a separate product the Targeted EIDL Advance which is a grant. Among other eligibility conditions, it now requires that business be located in an IRS designated “low income community” as determined by a published map: sbaeidl.policymap.com/app
Q: if I don’t use the loan is it returnable in the first 2 years with out the interest or once they loan it is returned with the %
A: EIDL (loan) payments are “deferred” for 2 year however interest accrues immediately. There is no pre-payment penalty.
Q: Is it still possible to receive the PPP with the 1% loan?
A: No, The Paycheck Protection Program (PPP) Loan funding ended on May 31, 2021, which means businesses are no longer able to apply for loans under the program. What is still open for some borrowers is application for Loan Forgiveness by providing proof of correct spending of the PPP funds (Payroll costs). Forgiveness eligibility ends 10 months from the end of the borrowers covered period.
Q: How do I increase an already existing EIDL loan?
A: Login to your EIDL portal to apply for an increase: covid19relief1.SBA.gov/Account/Login
There will be a green button to press to indicate you desire to increase your EIDL amount if you are eligible. More verifying information including an IRS Form 4506-T to request 2019 and 2020 tax returns needs to be provided.
Do NOT apply for another loan, which flags the request as fraudulent.
Q: How can these services can be implemented to serve our Hawaiian Homelands Beneficiaries?
A: SBA COVID relief funding is targeted to small businesses (valid business license with federal EIN) with no specific set asides for HH Beneficiaries. Not specifically “Relief Funding” -HH Beneficiaries looking for loans should take advantage of loan products from Council for Native Hawaiian Advancement and OHA Revolving Loan Fund.
Q: I was approved for an EIDL loan in 2020. At the time my business was owned by myself and a business partner (partnership LLC). Starting in 2021, my business turned into a sole proprietorship…. Everything stayed the same – FEIN, GE, LLC – the only thing that changed is that it is now owned by one person, myself. My question is: Should I apply for a 2nd draw from my existing EIDL loan, or start a brand new application?
A: With business FEIN and structure staying the same, you should apply for a second draw of your existing EIDL.
Q: For EIDL, if your business is not located on the IRS’ map, should you just stop there?
The IRS designated low community map only impacts on the Targeted EIDL Advance grant. There is no restriction on businesses for the EIDL (loan.)