SBA Nebraska District Office Newsletter - Your Small Business Connection

Nebraska District Office  - December 2021

Your Small Business Connection

Vol 9

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BREAKING NEWS

Nebraska Sees Record 36% Increase in Loan Activity in FY2021

Nebraska’s entrepreneurial climate showed definite signs of recovery this year from the widespread economic impact of the COVID-19 pandemic. The total dollar amount of SBA loan guarantees rose to $243.7M, which is a remarkable 37% ($90M) increase from fiscal year 2020. The number of SBA guaranteed loans remained steady with a total of 421 loans approvals ($244.9M) this fiscal year compared to 445 ($153.7) last fiscal year. These loans were made through banks, credit unions and certified development companies.

The FY2021 Regular Program loan totals for the Nebraska District Office were:

  • 7(a) Loan Program: 344 loans approved for $193,115,300
  • 504 Loan Program: 77 loans approved for $50,581,000
  • Microloan Program: 61 loans approved for $1,281,407

As a direct result of SBA guaranteed 7(a) and 504 small business financing in Fiscal 2021, 5867 jobs were created or saved. 

The CARES Act continued to be a critical factor in the survival of Nebraska’s small businesses in FY2021. This Act funded loans for eligible businesses affected by the COVID-19 pandemic, funding both the Paycheck Protection Program (PPP) loan program and COVID-19 Economic Injury Disaster Loan (EIDL) Program loans. Nebraska’s banks, credit unions and other lending institutions were quick to close out the Paycheck Protection Program, making over 70K PPP loans totaling over $1.9B.  Nebraskans also heavily utilized the EIDL Program’s increased cap of up to $500k, and subsequent increase to the full $2M. The total number of EIDLs in Nebraska was slightly higher than last year’s total at 15K, but there was a dramatic increase in the total amount of funding, which soared to 1.2B (compared to 850M in FY2020).

The FY2021 CARES Act loan totals for the Nebraska District Office were:

  • Paycheck Protection Program: 70,810 loans for $1,937,788,407
  • SBA COVID-19 EIDL Program: 15,173 loans for $1,237,702,948

The total lending activity for Nebraska in FY21 was 86,465 loans for $2,680,469,062. The Nebraska Economic Development Corporation (NEDCO) provided the most SBA 7(a) loans in Nebraska – 77 loans were made totaling $50,581,000. Coming in second was First State Bank NE with 37 loans totaling $30,226,200. Rounding out the top three was Union Bank and Trust Company with 36 loans totaling $13,647,300.

Reflecting on this past fiscal year, Lisa Tedesco, Acting District Director for the SBA Nebraska Office, states “through the coordinated effort of our community lenders, trade associations, economic development organizations and SBA’s resource partners, Nebraska’s SBA District Office was able to coordinate the financial resources and provide guidance and education to our Nebraska small businesses. The record small business lending for FY2022 included PPP, EIDL, 7(a) and 504 loans to help keep businesses operating during this unprecedented economic event.”

Top Nebraska Lenders in FY2021

COVID EIDL Application Deadline Is Dec 31st

eidl

Small business owners who want to take advantage of the COVID Economic Injury Disaster Loan Program have up until Dec 31st, 2021 to apply. People are encouraged to apply soon as the program will only be available until funds are exhausted, which may be sooner than the application deadilne.

The COVID EIDL is a low interest (3.75%), long term (30 year) loan to provide small business owners negatively impacted by the pandemic to bring their businesses back to pre-pandemic levels of operation. 

How to apply

Eligible small businesses, nonprofits, and agricultural businesses in all U.S. states and territories can apply. Visit www.sba.gov/eidl to learn more about eligibility and application requirements. The last day that applications may be received is December 31, 2021. All applicants should file their applications as soon as possible.

For additional information on COVID EIDL and other recovery programs please visit www.sba.gov/relief. Small business owners may call SBA’s Customer Service Center at 1-833-853-5638 (1-800-877-8339 for the deaf and hard of hearing) or email DisasterCustomerService@sba.gov for additional assistance. The center is open Monday through Friday from 8 a.m. to 8 p.m. EST. Multilingual representatives are available. Small business owners may also contact SBA’s Resource Partners by visiting www.sba.gov/local-assistance.

          


SBA's National Veteran's Small Business Week A Rousing Success!

National Veterans Small Business Week 2021

The 2021 SBA National Small Business Week Virtual Summit is all about celebrating the resilience and renewal of American's small business owners. Over the course of three days, you'll learn all about resources to help America build back better, hear inspiring stories of small business owners who have survived during the pandemic and benefit from educational webinars on a variety of topics.

We are also delighted to announce that Omaha business owner Richard Messina, owner of Play It Again Sports in Omaha, was selected to be interviewed for a series of video highlights during the Virtual Summit!  You can read Rich's SBA success story here.

 


Lenders' Lounge

The Paycheck Protection Program Direct Forgiveness Portal is now live!

Illustration of a laptop with text that includes, PPP Forgiveness Portal

 

The U.S. Small Business Administration's Paycheck Protection Program (PPP) Director Forgiveness Portal went live on August 4th, 2021. 

This streamlined application portal allows borrowers with PPP loans of $150,000 or less to apply for forgiveness directly through the SBA. 

Borrowers looking to apply for forgiveness should register on Portal to begin the direct forgiveness application process. The SBA has developed a PPP customer service team that will be able to directly assist borrowers with their forgiveness questions. Borrowers can call this team at (877) 552-2692, M-Fri from 7 a.m. - 7 p.m. CST.

Borrowers can also utilize this Direct Forgiveness Portal User Guide for assistance. 

Currently, over 1250 banks nationally have opted into the direct forgiveness process.

 


Contracting Corner

End of Year Contracting Numbers in Nebraska Surpass Pre-Pandemic Numbers!

Nebraska Federal Contracting End Of Year Numbers for FY2021
Total Dollars to NE Firms in FY2021

The COVID-19 pandemic has continued to affect small businesses throughout FY2021, and businesses involved in federal contracting are no exception. But there are definite signs of optimism on the horizon - awards to small businesses rose above pre-pandemic numbers from FY2019! Nebraska small businesses have continued to do very well in the federal marketplace over the last five years, and in some cases have more than doubled the national goals set by Congress and SBA for federal dollars going to small businesses and other socio-economic groups.

A lot of this activity is attributed to businesses pivoting to respond to steady government work happening in Nebraska and around the country. There are infrastructure improvements continuing in the IT, security and construction industries that are ideal contracts for small businesses to secure.

The SBA Nebraska District Office assigns a lot of this success to its partners at the Nebraska Procurement Technical Assistance Center (PTAC), who assists small businesses all over the state of Nebraska with how to strategize and win government contracts.

The SBA and Nebraska PTAC work together throughout the year to provide education and outreach to Nebraska businesses by helping them navigate the path from understanding the federal marketplace, to leveraging certifications, to finding and bidding on opportunities.  You can view a full schedule of Nebraska PTAC events here

Note: Chart data is from Fedmine

Government contracting veterans

The process for getting certified by the Federal Government as a Veteran-Owned Small Business (VOSB) and Service Disabled Veteran Owned Small Business (SDVOSB) will transitioning from the Department of Veterans Affairs' Center for Verification and Evaluation (CVE) to the U.S. Small Business Administration over the course of the next two years. The National Defense Authorization Act of 2021 officially requested that the CVE's duties be transferred to the SBA by Jan 1, 2023.

The SBA already manages all other government-wide socioeconomic programs for VOSBs and SDVOSBs, so this transition will help eliminate confusion and redundancy by allowing the SBA to be a one-stop shop for all veteran contracting and certification needs.

VOSBs or SDVOSBs previously verified by the VA will not lose their status at the time of program transfer. Self-certified SDVOSBs will now be required to apply for SBA verification - there will be a one-year grace period to apply with the SBA starting January 1, 2023.  There is no immediate action required for veteran small business owners at this time.

For more information on the SBA's VOSB programs can be found here.                  


Surplus Personal Property for Veteran-Owned Small Business Programs

Do you know about the GSA's Federal Surplus Property Donation Program? Eligible veteran-owned small businesses (VOSB) can now work with the SBA to access federally-owned surplus personal property through this program!

VOSBs may obtain federal surplus property from the State Agencies for Surplus Property (SASP) in the state where the property will be primarily located and placed in use. In order to meet the baseline eligibility requirements, the VOSB must be

- Located and operated within the state

- Unconditionally owned and controlled by one or more eligible veterans, service-disabled veterans, or surviving spouses

- Registered and in "verified" status in the VA's VETS First Verification Program Database

To learn more visit sba.gov/vetsurplus.

 


Marketing Minute

Believe it or not, the holiday season will soon be upon us! Now's the time to get your holiday marketing strategy ramped up. Email marketing is a great tool to increase your holiday sales - here's 5 tips from SCORE on how to use email to market your holiday promotions.