TRS CPA GROUP

State of Delaware Hospitality Emergency Loan Program (HELP)

25.03.2020
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State of Delaware Hospitality Emergency Loan Program (HELP)

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

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