SBRL Program – Frequently Asked Questions
About the Program
Which organizations are involved in the Small Business Resiliency Loan?
The Small Business Resiliency Network (SBRN), WA State Department of Commerce, GoWest Foundation, and Participating Credit Unions of Washington States (see Q: Which credit unions are participating in the Small Business Resiliency Loan?)
Small Business Resiliency Network
Credit Union Point of Contact List
How much money is available to Washington State Businesses through the Small Business Resiliency Loan program?
Approximately $8 million is available through the pilot phase of the Small Business Resiliency Loan.
What can the Small Business Resiliency Loan be used for?
The loan can be used for any legal business expense. Here are some examples of ways to use a business loan:
– Establishing/expanding a new business
– Expanding an existing business through a new service or product line
– Purchasing/upgrading equipment
– Purchasing/upgrading business vehicles
– Purchasing inventory
– Business acquisition
– Marketing
– Addressing unanticipated expenses
– Small Business Resiliency Loan Overview PowerPoint
Session 1: SBRL Overview and Outreach Resources
– Session 1 Recording
– Session 1 PowerPoint
If a small business completes the program successfully and receives the cash from the savings (share-secured) account, what can the cash be used for?
Like the loan, the cash can be used for any legal business expense.
What is a credit union?
A credit union is a not-for-profit financial institution that accepts deposits, makes loans, and provides a wide array of other financial services and products. Deposits are insured by the National Credit Union Share Insurance Fund, which is managed by the National Credit Union Administration (NCUA). Credit unions are owned and controlled by the people, or members, who use their services. Members’ votes count, and a volunteer board of directors is elected by members to manage a credit union. Credit unions operate to promote the financial well-being of their members. Profits made by credit unions are returned back to members in the form of reduced fees, higher savings rates, and lower loan rates (like you see with the Small Business Resiliency Loan).
Which credit unions are participating in the Small Business Resiliency Loan?
- Canopy Credit Union
- iQ Credit Union
- Newrizons Federal Credit Union
- North Coast Credit Union
- NorthWest Plus Credit Union
- O Bee Credit Union
- OnPoint Community Credit Union
- Peninsula Community Credit Union
- Solarity Credit Union, Sound Credit Union
- TAPCO Credit Union
- Unitus Community Credit Union
- WECU.
Credit Union Point of Contact List
What happens if the small business wants to pay off the loan early?
A small business can repay a loan in full any time after they have made 12 monthly payments. If a small business repays the loan before they have met the 12-month requirement, they will not be eligible to receive the cash in the share account.
What happens if the small business is late in making a payment?
At 29 days of non-payment, credit unions will access funds from the share account to satisfy the payment due – preventing the loan from ever being reported as non-payment to credit bureaus. After three months of borrower non-payment and the credit union accessing funds from the share account to satisfy the payment due, the credit union will access funds from the share-secured account to pay off the loan and close the account. The small business will be exited from the program.
Is there anything that would cause the small business to be removed from the program?
After three months of borrower non-payment and the credit union accessing funds from the share account to satisfy the payment due, the credit union will access funds from the share-secured account to pay off the loan and close the account. The small business will be exited from the program.
Will the small business' payment activity be reported to credit bureaus?
All on time payment activity will be reported by credit unions to at least one credit bureau. Non payment will not be reported.
Will there be any fees associated with late payments?
No. There are no fees associated with late payment.
If the business completes the program and receives the cash from the savings (share-secured) account - is the cash considered taxable income?
Yes. The small business owner should anticipate that they will be taxed on the funds they receive from the share account.
How will GoWest determine which credit union to match the small business to?
GoWest determines which credit union to match the small business to based on information including in the application, such as: Existing relationships, applicant preferences, and community/geographic focus.
Will there be a credit check at any point?
Yes, there will be a soft pull credit check during the application process and as needed during the life of the loan. A soft pull credit inquiry does not affect a person’s credit score. This information will be used for evaluating the effectiveness of the Program and internal credit union requirements.
Does the small business need to become a member of a credit union to receive a loan?
Yes, the small business owner needs to become a member of a credit union to receive a loan. The credit union and SBRN partner will support the business through this as part of the loan process.
How much time will the small business have to pay back the loan?
Loan terms must be at least 12 months and can be no more than 30 months. Beginning in early June of 2024, loan payments can be no more than 24 months.
What are the dates for the first allocation?
Outreach
How will my community know that this loan program is available?
Your community can learn about this loan program through the Small Business Resiliency Network (SBRN) partner. The program will not be advertised to the general public. Each SBRN Partner will determine the way in which they communicate and engage with their communities.
Will outreach resources be provided in any language other than English?
SBRN partners may choose to provide culturally and linguistically appropriate outreach, translation, assistance, and education to aid business owners in their communities. If an SBRN partner finds they do not have the budget for this outreach, they should reach out directly to the Commerce Team at [email protected].
Readiness
What documents or information does a small business need to have ready when they apply?
Documents needed for the business.
– Valid/current business license from WA state or nationally recognized tribe
– Certification of formation
– Any additional documents, such as a partnership agreement… (not sure if needed)
Information needed from the business:
– Description of loan use
Document needed from individual/applicant:
– Valid drivers license, state id, etc.
Information needed from individual/applicant:
– SSN/ITIN
SBRL Application Checklist
How do I help a small business apply for their Washington business license (UBI)?
If you’re not familiar with the process of obtaining a UBI, please review materials in the Small Business Resiliency Loan – EmpowerED Training Box under the WA State Department of Revenue folder.
SBRL EmpowerEd Training Box – UBI
Can a small business apply if they do not have a Washington business license (UBI)?
No. A small business needs to obtain a business license in order to apply for the loan.
SBRL EmpowerEd Training Box – UBI
How do I help a small business apply for the federal Unique Entity Identifier (UEI)?
If you’re not familiar with the process of obtaining a UEI, please review materials in the Small Business Resiliency Loan – EmpowerED Training Box under the Sam.gov – UEI Training folder.
SBRL EmpowerEd Training Box – Sam.gov Training
Can a small business be in the process of obtaining a Unique Entity Identifier (UEI) when they apply?
Yes, a small business can be in the process of obtaining a Unique Entity Identifier (UEI) when they apply.
SBRL EmpowerEd Training Box – Sam.gov Training
What forms of identification are accepted through this loan program?
Accepted forms of identification for this loan program include driver’s license, state ID, and/or passport
Eligibility
Which small businesses are eligible to apply for this loan?
Eligible small businesses include those negatively affected by the pandemic, operating in Washington State, and employing 20 full-time equivalent employees or less.
SBRL Application Checklist
Are entrepreneurs and/or start-ups allowed to apply?
Yes. Entrepreneurs and start-ups with fewer than 20 full-time equivalent employees can apply.
SBRL Application Checklist
Is there a small business size that is too large to be eligible?
Businesses with more than 20 full-time equivalent employees are not eligible for this loan program. There are no restrictions for “business size” in terms of revenue for this program.
SBRL Application Checklist
How long will the small business need to maintain documents that prove they were negatively impacted by COVID?
If you were required to self attest COVID impact (signed the attestation form) you should keep your records that demonstrate your eligibility for the Small Business Resiliency Loan from the time your SBRL is approved and for the next 6 years. For example you filled out the self attestation form and applied for the SBRL on November 1, 2024. Your SBRL was approved and started on Jan 1, 2025. You should keep your records that demonstrate your eligibility for the Small Business Resiliency Loan until Jan 1, 2031.
What is the process for determining eligibility?
Eligibility is determined through initial screening, verification of business address, if necessary a self-attestaion of COVID-19 impact, and business size (amount of full-time employees). Some partners will have additional eligibility requirements (e.g. financial literacy training, etc)
SBRL Application Checklist
What happens if a business address is not located in an eligible area?
If a business address is not located in an eligible area, the applicant must provide a statement attesting to being negatively impacted by the pandemic for eligibility. See also: “What types of documentation will the small business need to keep to demonstrate they were negatively impacted by COVID?”
Sample Application – FOR PRINT (NOT FOR OFFICIAL USE)
What types of documentation will the small business need to keep to demonstrate they were negatively impacted by COVID?
For 6 years, keep records that demonstrate your eligibility for the Small Business Resiliency Loan. You should retain documentation such as, but not limited to:
– Square reports (Profit and Loss) showing losses
– Notice of eviction
– Utility shut off notices
– Lay-off notice (Pink Slip)
– Documents used for other COVID grants/funding that showed the hardship/impact
– Unemployment benefits documentation
– Lack of available childcare because of COVID
– Tax returns and supporting documentation
Can a loan be used to consolidate or pay off existing high-interest or predatory debt?
Can small business owners who only have an ITIN apply for a loan?
Yes. A large number of participating credit unions are able to provide loans to borrowers with ITINs.
Is this loan program Sharia-compliant?
The Small Business Resiliency Loan does not currently offer a Sharia-compliant option. We continue to explore this.
Is there a different eligibility criteria for larger loans?
Budget & Ability to Repay
How does the budget worksheet help assess an applicant's financial situation?
The budget worksheet helps in assessing an applicant’s ability to repay by evaluating factors such as income, expenses, debt, and/or taxes.
Session 3: Budget Worksheet
Session 3 Recording
Session 3 Powerpoint
Are there different types of budget worksheets available for applicants?
There are two types of budget worksheets available on the portal: Simple and Detailed. These worksheets help applicants provide the required information based on their level of complexity and preference.
Session 3: Budget Worksheet
Session 3 Recording
Session 3 Powerpoint
How does the budget worksheet impact my loan eligibility?
The budget worksheet does not impact loan eligibility, but it is a required component of the application process.
Session 3: Budget Worksheet
Session 3 Recording
Session 3 Powerpoint
What information and documentation is needed to complete the simple budget worksheet?
To complete the simple budget worksheet, a conversation with the applicant must be held around the business’s ability to comfortably repay the loan. The applicant will need to provide monthly financial details like income, expenses, debt, and taxes.
Session 4: Application and Confidentiality
Session 4 Recording
Session 4 PowerPoint
Loan Application
What are the steps in the Small Business Resiliency Loan (SBRL) application process?
Once fit and readiness have been determined, the SBRN partner together with the applicant work through:
– Address verification
– if necessary, Self-attestation
– Permission form
– Budget worksheet
– Loan pplication (general business information)
– Applicant preferences
Session 4: Application and Confidentiality
Session 4 Recording
Session 4 PowerPoint
What is the role of the budget worksheet in the loan application process?
The budget worksheet helps in assessing an applicant’s ability to repay by evaluating factors such as income, expenses, debt, and/or taxes. It aims to ensure that the SBRL loan supports business growth without creating financial strain.
Session 3: Budget Worksheet
Session 3 Recording
Session 3 Powerpoint
After the Application
What happens after the small business submits an application?
After a small business submits an application, GoWest checks it for completeness, duplication, and eligibility. Then, they route the application to a participating credit union based on existing relationships, language preferences, and community/geographic focus. The credit union prepares loan documents, collaborates with the borrower to sign account and loan documents, and requests funds from GoWest. The entire process usually takes 2-3 weeks.
Session 5: After the Application is Submitted
Session 5 Recording
Session 5 PowerPoint
After the small business is assigned to a credit union, who can they reach out to if they have questions?
After a small business is assigned to a credit union, they can reach out to the single point of contact at the CU (see point of contact document). At any point in the loan process the business applicant can also reach out to their SBRN partner organization.
Credit Union Point of Contact List
How do SBRN partners support applicants after submission?
After SBRN partners submit the application on behalf of the applicant to GoWest, GoWest checks the application’s completeness, duplication, and eligibility criteria. If the application meets all requirements, GoWest forwards it to a credit union for processing.
What does a typical credit union membership application look like?
A typical credit union membership application includes identifiable information such as name, address, and date of birth. Some credit unions may request to see the applicant’s driver’s license or other identifying documents. The credit union may also require soft credit reports on the applicant at the time of application and periodically thereafter.
Session 5: After the Application is Submitted
Session 5 Recording
Session 5 PowerPoint
Screening
How do SBRN partners determine applicant fit?
SBRN partners use a screening tool that assesses factors such as prior access to capital, credit score, household income, existing banking relationships, and relationship with the SBRN partner. Additionally, they use their judgment to determine if the applicant is a good fit for the program.
SBRL Fit Screening Resource
SBRN Partner Role
Do SBRN partners receive support during the loan program?
Yes.
– Resource Center
– Questions to [email protected]
– Optional Q&A Sessions
– Phone (425) 491-8850
How do SBRN partners determine applicant fit?
Each SBRN partner should plan on conducting a thorough fit screening of each applicant and a fair application process. SBRN partners should use a screening tool of their choosing. The one provided helps assess factors such as prior access to capital, credit score, household income, existing banking relationships, and/or relationship with the SBRN partner.
SBRL Fit Screening Resource
