BUSINESS RESOURCES

Reopening Wrangell Information for Businesses

State Business Financial Assistance Program


Updated 7-2-2020
To Wrangell Businesses:
  • The PPP program IS EXTENDED UNTIL AUGUST 8. 
  • The Alaska State CARES Act assistance program will be changing eligibility criteria to allow businesses who received less than $5000 in EIDL and PPP to also receive state funding. 
  • Alaska  State CARES Act program is proposing additional changes, but the timeline for changes is unknown.
  • Businesses that have received less than $5000 of the EIDL or PPP can apply for the Alaska State CARES grant. 
  • The EIDL program is open again for agricultural businesses.

PLEASE KEEP CHECKING ELIGIBILITY -- The changes to the State's assistance program will be posted when available.  Major change to allow businesses that have received less than $5000 of the EIDL or PPP to still apply!! 

The application is available at Credit Union 1 website.

The Alaska Department of Commerce, Community, and Economic Development (DCCED) and the Alaska Industrial Development and Export Authority (AIDEA) are partnering  with Credit Union 1 to offer emergency relief to Alaskan small businesses.    Instructions on eligibility and terms are listed below and available online as well. Go to for updates and application:
https://www.commerce.alaska.gov/web/ded/AKCARESGrant.aspx

ELIGIBILITY:
  • Business must have a business license valid as of March 11, 2020
  • For Businesses of less than 50 employees, including sole proprietorship
  • Any business that received a PPP loan or has an approved PPP application or received  EIDL funding over $5000  is NOT currently eligible. THIS MAY CHANGE!! KEEP CHECKING THE WEBSITE. 
  • INELIGIBLE businesses include marijuana businesses, secondary income sources, out of state businesses, and those with more than 50 employees.
  • Certain Non-Profits are also eligible. (changes are being proposed to allow 501C6 and 501C4 non profits)

Generally:
  • Applications were accepted beginning June 1
  • Grants will range from $5K to $100K
  • 20% of funds are set aside for communities of less than 5000 population
  • Funds will go to Dept. of Commerce, Community and Economic Development (DCCED), in partnership with Alaska Industrial Development and Export Authority (AIDEA) and will be managed by Credit Union 1.
  • Loosely based on the federal Payment Protection Program (PPP) requirements.
  • Expenses can include payroll, short term debt, rent/mortgage payments, utilities, purchase of Personal protection equipment, business related equipment needed for COVID-19, replenish inventory expenses lost or to reopen during COVID-19
  • Can use on expenses retroactively since March 11 and forward fund 8 additional weeks
  • Information will be posted on https://www.commerce.alaska.gov/web/ded/AKCARESGrant.aspx
  • Applications must be submitted by email
​

Paycheck Protection Program and the SBA

FEDERAL FINANCIAL ASSISTANCE
Paycheck Protection Program (PPP)     HAS BEEN EXTENDED. APPLICATION PERIOD ENDS AUGUST 8.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.  Loans will continue to be processed in the order in which they were received.  In this new round of funding, there are some changes that benefit the seasonality of Alaska small businesses. 
The U.S. Treasury has published a new interim final rule authorizing temporary changes to the Small Business Administration Paycheck Protection Program (PPP) (document is below). According to the guidance, "all lenders eligible to originate loans under the PPP [are allowed] to use an alternative criterion for calculating the maximum loan amount for PPP loans issued to seasonal employers." 
Section 1102 of the Act permits seasonal employers to calculate their maximum loan amount by using their monthly average payments for payroll during “the 12-week period beginning February 15, 2019, or at the election of the eligible [borrower], March 1, 2019, and ending June 30, 2019."
Under this rule, loan amounts could increase for businesses that rely on seasonal employees.
If your business has not already applied for PPP funds, submit your request as soon as possible.
The amount of the EIDL advance received by a business will be deducted from the loan forgiveness amount if a PPP loan is also obtained.
The interest rate is 1% and must be repaid within two years.  Only 75% of the loan can be for payroll, and only 25% can be used for rent,mortgage, lease, utilities. 
The complete rules and procedures for what will be forgiven, the formula as to what is forgiven and the bank process for forgiveness for these loans have not yet been finalized, but they should be released soon. The earliest a recipient can ask for the loan forgiveness is in the 7th week. 
 It is VERY important that you stay in contact with the lender to make sure you are using the funds for their specific purpose and have the correct  forms or records they will need. 


Small Business Administration  Economic Injury  Disaster Assistance Loans for Small Businesses Impacted by Coronavirus (COVID-19) (EIDL)  
THIS PROGRAM IS NOW OPEN AGAIN FOR AGRICULTURAL BUSINESSES

The SBA will continue processing loan and advance requests in the order in which they were received. 
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
A loan advance of $1000 per employee will be made to applicants to provide economic relief to businesses that are currently experiencing a temporary loss of revenue.  Those funds started being disbursed to Alaska businesses on Tuesday,  4/14. If you applied using the streamlined application on or after March 30 and before April 16 you do not have to reapply.   At some point the advance will be deposited and then later you should be contacted by an SBA employee by email regarding the loan portion. Make sure any email ends in sba.gov.    You can receive the advance without having to accept the loan. 
For technical info on SBA Disaster Loans or the application, contact the SBA Customer Service Center at 1-800-659-2955 or email disastercustomerservice@sba.gov. 
CITY & BOROUGH OF WRANGELL
P.O. BOX 531
​CITY HALL - 205 BRUEGER ST.
WRANGELL, AK 99929
​907-874-2381
wrangell.com
WRANGELL MEDICAL CENTER - SEARHC
P.O. BOX 1081
310 BENNETT ST.
WRANGELL, AK 99929
907-874-7000
searhc.org
WRANGELL PUBLIC SCHOOL DISTRICT
P.O. BOX 2319
DISTRICT OFFICE - 350 BENNETT ST.
WRANGELL, AK 99929
907-874-2347
wpsd.us