Update for Existing Capital Access Group Clients
Dear Capital Access Group Clients,
We understand the challenges small businesses are facing due to COVID-19 pandemic. If you are an existing Capital Access Group client, we want you to know that supporting your business during this unprecedented time is our top priority.
We have designed a deferral program for existing clients whose businesses are being impacted by COVID-19. The program provides reduced or no loan payments for up to six months, the maximum deferral allowed by the SBA, to help get your business through these difficult times. The amount deferred will be repaid over a 5 to 10 year period. It could be that following the deferral period, you resume making payments at the regular amount for six (6) months and then go into a higher catch-up amount for 4.5 years. Please keep in mind that interest continues to accrue over the deferral period.
Please send the following to firstname.lastname@example.org, or contact us if you would like us to send a secure filesharing link:
- A letter describing the impact COVID-19 sheltering or other safety practice mandates have had on your business prompting your request for a deferral of loan payments. Some helpful operational aspects to include, but not limited to, in the description are:
If your business is open and operating:
- Briefly describe the extent of operations being conducted (as compared with pre- Covid19 conditions).
- Have you augmented your sales, expenses and/or staffing practices? If so, please briefly describe what those changes are.
- Are current operations meeting business and personal expense obligations? If not, please briefly describe how the shortfall is being addressed.
- Are any further changes in business strategy planned? If so, please briefly describe.
If your business is not open or operating:
- Please briefly describe what business and/or operational change(s) including staffing were made, if any, in conjunction with the shutdown.
- When restrictions are eased or lifted, how soon do you estimate operations can commence again?
- Please provide an anticipated timeline to reach adequate sales/revenue volume to meet operational expenses.
- Are any other changes in business strategies planned with respect to current industry conditions or environment? If so, please briefly describe.
- Operating projections for the next twelve months or, if the business is not open, for the one year following when direct restrictions will be lifted (template here).
- 2019 federal tax return for business and any guarantor affiliate(s). If 2019 tax return is on extension, please provide the filing extension AND 2019 profit & loss statement and balance sheet if not previously provided.
- Interim profit & loss statement and balance sheet as of July 31, 2020 or later month-end for business and any guarantor affiliate(s).
- Business Debt Schedule as of same date of interim balance sheet above for business and any guarantor affiliate(s). Please include any PPP and/or EIDL loan information as applicable.
- Accounts Receivable AND Accounts Payable aging reports as of same date of interim balance sheet above. Please comment on any account balance(s) 90 days or more past due (i.e. collectability, resupply ability, etc.).
- Personal Financial Statement (SBA Form 413) on all 20% or more owner(s) and/or individual guarantors.
- 2019 personal federal tax return for same individuals as above if not previously provided, or extension filing if applicable.
- Most recent statement from the first mortgage lender reflecting the principal balance, payment, and loan status information.
What to expect:
- We will do our best to get back to you with an answer or request for any additional information needed as quickly as possible. Please note that we are receiving a large volume of requests and are doing our best to turn them around quickly.
- If approved, the total amount that was deferred during the period will be amortized into your payments of up to the next ten years in order to minimize the monthly payment increase.
- Please be advised that during the deferral and catch up period, we will require a semi-annual business financial statement and year-end tax returns (federal only).
- Real estate taxes and required insurances must be kept current.