North Coast SBDCEureka and Crescent City California

Financial Help

Members of the COVID-19 Emergency Resilience Committee are maintaining a comprehensive menu of help being offered through national, state, and local financial institutions. Stay tuned for updated listings of grants, low-interest loans, payment help, and much more.

Note: neither the North Coast SBDC nor any of its partners or funders endorses or influences this content. It's posted here for informational purposes only.

Financial Help Alerts

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Don't Get Scammed.

Avoid and Report Scams. Learn more about what to look out for here. Report scammers to the the FBI at www.ic3.gov.
Here's a useful piece on scams from Inc.com Magazine.

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Financial Management and Lending Webinars

Recorded Webinars:

  • Coping with COVID: Emergency cash flow resources and opportunitiesRecording here.
  • Coping with COVID: Repairing Your Credit. Recording here.

Recursos e seminarios web en español

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City of Arcata Business Resiliency Emergency Loan Program

  • Arcata businesses impacted by COVID-19. 
  • Loans of up to $10,000
  • 2.5% interest
  • Deferred payments for 6 months. Borrower can then convert to a traditional bank loan. Or the City will carry it with a 5 year loan repayment.

Information & Application here
Questions? Contact Susan Diehl McCarthy, Community Development Specialist II, sdiehlmccarthy@cityofarcata.org, (707) 825-2168
 

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County of Humboldt 

Humboldt County Launches Online Tool to Help Businesses Meet State Reopening Requirements

The Humboldt County Office of Emergency Services (OES) today is launching an online portal for businesses to submit a Reopening Plan in preparation for a gradual lifting of California’s Stay-at-Home Order.

Humboldt County Private Sector Economic Injury Data

As of 4/16/2020:
The county is collecting reports biweekly. Only 5% of all HumCo businesses (608 firms) have reported in as of 4/16. This figure needs to grow so the County can tap emergency resources for our community.

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Del Norte

Del Norte County Private Sector Economic Injury Data

As of 4/20/2020:

The county is collecting reports biweekly. As of 112 businesses have reported; half operate in Crescent City limits and half across the county.

Del Norte Small Business Stabilization Loan Program 

  • Del Norte micro businesses impacted by COVID-19
  • Loans of up to $5,000 (flexible)
  • 0% interest
  • Three year repayment term
  • Fewer than five employees
  • Crescent City business license, operating anywhere in Del Norte
  • In operation as of March 1st
Information & Application downloadable here.
Learn more at Prepare Del Norte.
Questions? Contact Holly Wendt, hwendt@crescentcity.org, (707) 951-3003

 

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CARES Act Paycheck Protection Program (PPP)

As of 4/20/2020:

  • Nationwide: 4,975 lenders processed 1.6 million loans totaling $342 billion
  • California lenders processed 112,967 loans totaling $33.4 billion

PPP Info:

  • This program is backed by a SBA 7(a) program federal guarantee and works through your local lender
  • The purpose is to provide a short term forgivable payroll to cover employee costs and some operating expenses.
  • Loan is worth 2.5 months of monthly payroll averaged over the prior 12 months.
  • Terms are 1% on a 2 year fixed note with no payments for the first six months.
  • Loan forgiveness depends on whether (a) employee and compensation levels are maintained; and (b) at least 75% of the loan proceeds are used to cover payroll costs over the 8 week period after the loan is approved.
  • Up to 25% of the loan can be used to pay for mortgage interest, rent, and utility costs.
  • Yes, borrowers can apply for both an SBA Economic Injury Disaster Loan and the Paycheck Protection Program loan. The Paycheck Protection Program loan funds and the Economic Injury Disaster Loan funds just can't be used for the same purpose.

Resources

Participating PPP Lenders (as of 4/10)

Financial institutions accepting Paycheck Protection Program loan applications currently:

On Hold - Submit Expression of Interest

Financial Intermediaries (FinTech)

Make sure your lender intermediary provides a Borrower’s Bill of Rights upon request (here's a sample).

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SBA Loan Programs and Info

SBA briefings daily at 10 am

Register here - select date using pull down list at bottom right

The U.S. Small Business Administration is running one-hour briefings for small businesses this week (April 27th - May 1st) daily at 10 am.

Paycheck Protection Program Updates
  • May 13th: Some Paycheck Protection Program (PPP) loan forgiveness guidance updates: Go to the Treasury Department's PPP home page and download the May 13 version of the FAQ here and pay attention to #s 16, 20, 36, 40, and 46
  • May 6th: The PPP FAQ updated on May 6th answers many common questions...
    • See # 40 for answer to "What if I try to rehire laid off employees but they won't come back?" You may still be able to have the loan forgiven if you document the attempt to rehire.
    • See # 45 for answer to, "I want to return the loan and claim the federal Employee Retention Tax Credit instead, can I pay it back without penalty?" The answer is yes--by the May 14th safe harbor deadline.

The detailed rules for loan forgiveness are not yet out. We will alert you as soon as we know more.

**Lenders are still accepting Paycheck Protection Program applications. If your local financial institution can't help you could try an alternative lender:

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  • Alert/Reminder for all: the PPP reopened for application opened (4/27). If you had a pending application make sure your lender knows you're still interested: contact them ASAP.
  • Alert for Native American Tribe-Owned Casinos: The PPP program is finally open to you: "...businesses receiving legal gaming revenue and otherwise meeting the qualification requirements for the PPP are now eligible to apply." Please contact SBDC if we can help you start an application asap.
  • Alert for Lenders: As of Tuesday 4/28 Treasure & SBA have launched Robotic Processing Automation (RPA) for banks wishing to submit Paycheck Protection Program loans into SBA’s E-Tran loan system. If you are a lender who needs assistance converting your submission process to a non-RPA API, contact Sheri McConville with the SBA. The general PPP lender assistance hotline is (833) 572-0502.

Paycheck Protection Program reopened April 27th 

 
If you were in the application queue with your local lender when the program halted, or if you now want to apply: CONTACT YOUR FINANCIAL INSTITUTION IMMEDIATELY. The program may run out of loan guarantees again very quickly.
 
The PPP lender assistance hotline is (833) 572-0502
 
Program guidance and related information can be found at www.sba.gov/paycheckprotection or www.treasury.gov/cares
 
The following new technical guidance from the SBA and the U.S. Treasury Department came out late Friday 4/24. Please discuss with your lender or business advisor:

SBA Economic Injury Disaster Loan still on hold

  • Online Disaster Loan Form has NOT reopened for new applications. No word on whether or when it will.
  • Applicants who have already submitted their applications are still being processed and approved on a first-come, first-served basis
EIDL applicant? Our current understanding is that the SBA is still processing previous EIDL applications already in their system. They're just not taking new applications. New way to check status of EIDL Application:
  • Call (800) 659-2955 (SBA Disaster Assistance Customer Svc Center) 
  • Press 2
  • Press 3

You'll then go to another voice prompt

  • Press 2
  • Press 4 for Loan Status

PPP applicant? New PPP loan applications through each lender will likely be placed on hold until now. Speak with your lender directly--some are taking names on a waiting list. Some are able to continue processing loan applications that got into the SBA system under the wire.
 
Congress is currently working on an additional stimulus package to increase the capacity of both the PPP and EIDL programs. Our hope is that they will resolve their issues and come to an agreement to continue both programs as soon as possible.
 
We will update you with more information as we receive it. 

 

Federal SBA Economic Injury Disaster Loan (EIDL)

Ag Businesses! You can apply for the SBA Economic Injury Disaster Loan

Learn more here and Start application here.

**On Monday May 4th the Small Business Administration started accepting Economic Injury Disaster Loan applications from agriculture businesses and coops with 500 or fewer employees.

As of 4/20/20:

  • The SBA processed 14 years' worth of lending in 14 days, with the help of new staff, including loaned FEMA personnel, and public-private partnerships.
  • California businesses secured more than 25% of the $5.57 billion in emergency loans approved as of April 20, 2020. 32.4% of that comprised EIDL advances. (We've requested a county by county report if possible.) View report here.

 

Before you apply, review this quick EIDL application guide with screen shots of the online application

  • Apply online at covid19relief.sba.gov
    Contact SBA customer service at 1-800-659-2955, disastercustomerservice@sba.gov
    Watch this 10 minute video if you're new to this program so you understand how to pull together the right financial data for the EIDL application.
    If you have already applied but your confirmation # starts with "2" apply again.

  • Rapid cash advance. SBA has added a checkbox on the application to request a rapid $10,000 advance on your loan. Advance is paid within 3 days of a successful EIDL application, and may not have to be repaid. If you already completed your application SBA will be in touch to offer you the chance to request this since it wasn’t available last week. If you started to apply, but never completed your application, you will need to reapply using the new and improved portal (see below.)

  • SBA dramatically improved the online application on 3/30, beefed up capacity to deal with millions of applicants, and grows customer service team exponentially every week: covid19relief.sba.gov, 1-800-659-2955, disastercustomerservice@sba.gov

 

FAQ

I applied early--before April 1st. Should I reapply?

  • Yes. If you applied early and your confirmation # starts with a 2 it's still wise to reapply. You will receive a new confirmation # starting with a 3. Keep both. Reapplying provides these benefits: (1) your application is incorporate directly into the faster, upgraded system and doesn't need to be moved over from the older system. (2) You can request an advance of up to $10,000 ($1,000 per owner/employee).

Is the EIDL program is running out of money?

  • Some clients have gotten notifications from The Office of Disaster Assistance stating that they can only receive two months of working capital up to $15,000 and up to $10,000 on the Emergency relief funding. Some applicants have not received this message. What we have been told by SBA today is that the funding levels maximums remain unchanged and businesses in need of relief should still apply. As soon as we (SBDCs) have different or more detailed information we will alert you all with an update.

Will I get a $10,000 cash advance on my EIDL loan?

  • Applicants may receive a forgivable cash advance on their EIDL loan of $1,000 per employee and owner up to $10,000. On March 30th the SBA launched the improved online application (above) that included a checkbox to request that advance. If you applied before March 30th, you will need to reapply to request that. You'll get a new/additional applicant confirmation # starting with "3". This advance is fully forgivable whether or not the full EIDL loan is approved.

How do I check on the current status of my application?

  • EIDL application status updates are currently unavailable, we're told, so the SBA teams can focus on underwriting millions of dollars in loan requests. We're keeping an eye on this and will let you know as soon as we're updated on how clients can ask for the status of their EIDL applications.

7(a), 504, or other SBA loans

SBA 7(a), 504, & other loan payments covered for now.

  • The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
  • The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020. (Note: This does not apply to PPP loans.)

If you have not yet heard from your lender about this contact them today.

Do you have an existing 7(a), 504, or other SBA loan?

  • Please contact your lender today. The Small Business Administration is probably covering your principal, interest, and fee payments for the next six months. This applies to 7(a) loans, Community Advantage Pilot Program, Microloan Program, and 504 loans. These payments do not apply to PPP loans.

SBA Express Bridge Loans

  • Up to $25,000 to help small businesses overcome the temporary loss of revenue
  • Will be repaid in full or in part by proceeds from the EIDL loan
  • For small businesses that currently have a business relationship with an SBA Express Lender
  • Ask your financial institution directly whether they can do these

Current Express lenders in Northern Coastal California are:

  • Wells Fargo
  • US Bank
  • Chase
  • Comerica
  • Exchange Bank
  • Redwood CU
  • Western Alliance Bank
  • California Bank of Commerce
  • Redwood Capital Bank

Information on the SBA web site here

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Local Lender Updates

All COVID emergency bridge loans can be refinanced with SBA EIDL $ funding once it arrives.

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Small Business Relief Fund

  • For self employed people and small businesses across California
  • Offered through CA micro-lender The Opportunity Fund and multiple funding partners
  • Working to raise $50 million to lend out. See April 7th update here.

Contact Opportunity Fund at 888-720-3215 (888-648-7859 en español) or click here to request information. 
Information on their web site here

Information on their web site here.

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U.S. Chamber of Commerce Save Small Business Grant Fund

Applications launch Monday 4/20savesmallbusiness.com/#apply

A grantmaking initiative offering short-term relief for small businesses with 3-20 employees. Applications taken first-come, first served.

Local Financial Resources

AEDC

Contact Info: susans@aedc1.org / (707) 798-6132

Operating Hours: By phone and ZOOM appointment only

Additional services provided during the COVID 19 Crisis: We're currently focusing on stabalizing our current clients. We're working with other funders and disaster loans to be able to refer customers.

Coast Central Credit Union

Coast Central Credit Union 

Contact Info: mmarquez@coastccu.org; pasullivan@coastccu.org; bmoore@coastccu.org

Operating Hours: No change operating hours, their business services team continues to work during business hours and can be reached by calling 707-445-8801.

Additional services provided during the COVID 19 Crisis: Offering payment deferrals for both business and consumer members: 60 day Skip-a-Payment. Referring folks to the SBA funding page and/or our local SBDC and AEDC resources.

Rewood Capital Bank 

Contact Info: framirez@redwoodcapitalbank.com

Operating Hours: Our Henderson Center branch and Fortuna lobby have closed (drive up still open in Fortuna) but Eureka Main Branch and Arcata Branches are still open. If individuals need to meet with Fortuna or Henderson Center staff, they can reach Freddy at 499-6782 or Bob Judevine at 269-4414. Otherwise, the other branches are open business as usual.

Additional services provided during the COVID 19 Crisis: Currently processing payment deferrals for existing customers on commercial loans.

US Bank 

Contact Info: jessica.hindley@usbank.com

Operating Hours: Office Hours are 9 a.m. to 5 p.m., with some flexibility based on circumstances

Additional services provided during the COVID 19 Crisis: Deferred payments, low rate & quick loans, fee waivers, still conduct business during the pandemic. Submit Request Here.  Once the business owner(s) submits a request, an email will be sent to them when the bill is signed into law with information about the program, and a separate email will be sent when the application is available with additional instructions with a link to the application.

Vocality Community Credit Union 

**Vocality Community Credit Union Can Now Process Paycheck Protection Program Loans!

Contact Info: p.neighbors@vocalityccu.org/t.farmer@vocalityccu.org

Operating Hours: 8:30 to 4 p.m. Mon-Thur; 8:30 to 5 p.m. Saturday

Additional services provided during the COVID 19 Crisis: We are providing availability of small emergency loans to consumers and small businesses - with terms from 12 months to 36 months, based on loan amount. Businesses up to $15,000, consumer up to $7,500. We are also offering loan extensions to existing borrowers and will assist businesses with debt consolidation loans if determined it is beneficial for the business to do so.

Wells Fargo

Contact Info: 1-800-869-3557, 707-443-4542, online appointments, WF App, wellsfargo.com

Operating Hours: Please call to make an appointment. 

Additional services provided during the COVID 19 Crisis: Call for details.

Contact Info: Sherilyn.Bernaldo@self-help.org 

Operating Hours: Please call to make an appointment. 

Additional services provided during the COVID 19 Crisis: Self-Help Credit Union is thrilled to be partnering with The California Endowment to increase capacity for lending to California nonprofits and small businesses as part of the government stimulus money through the SBA’s Paycheck Protection Program (PPP). 

If you want to apply through Self-Help, please send the following information to Sherilyn Bernaldo at Sherilyn.Bernaldo@self-help.org so we can prepare an application code for you, and send you a link to our application and a detailed application guide to help you complete it.  We have also arranged for a technical assistance organization to walk through the application with you before you submit, to help ensure the fastest possible processing of your application.  We need from you:

 

Name of organization

Contact name

Email address

Phone number

Even if you submitted an application with another lender, having a backup application may be worthwhile.  We are hearing that during PPP 1.0 many lenders prioritized their largest customers, and had so many applications that some of them never got submitted to the SBA.  Self-Help also has more demand than we can handle, but we are specifically prioritizing outreach to nonprofits working toward economic and social justice, as well as small businesses in underserved communities, particularly those owned or led by people of color. 

Tri Counties Bank

Contact Info: Jenny Murgia, Northern Region Regional Manager, Mobile: 530.520.5525, Email: jennymurgia@tcbk.com ; Fortuna – Chris Broadstock, Branch Manager, 707-725-7150, Email: christopherbroadstock@tcbk.com; Eureka Harris – Lori Davis, Branch Manager, 707-443-8488, Email: loridavis@tcbk.com; Eureka Henderson Center – Briana Hutsell, Branch Manager, 707-269-2900, Email: brianahutsell@tcbk.com; Arcata – Scott Hunt, Branch Manager, 707-825-4781, Email: scotthunt@tcbk.com; McKinleyville – Samantha Howard, Branch Manager, 707-839-8400, Email: samanthahoward@tcbk.com

Operating Hours: Normal hours vary by branch and are available on their locations page. During the Corona Virus outbreak, most branches are open Monday through Friday 10:00 am to 3:00 pm. For current updates click here. 

Additional services provided during the COVID 19 Crisis: They are encouraging their customers who may be having financial difficulties due to the Coronavirus outbreak to call their local banker or call the Customer Service Center at 1.800.922.8742. Tailored assistance will vary based on each customer’s unique situation.

Redwood Region Economic Development Commission

Contact Info: gregg@rredc.com

Operating Hours: Email gregg@rredc.com or virginialoan@rredc.com

Additional services provided during the COVID 19 Crisis: COVID loans of up to 25,000 for current customers.

How can I apply for a SBA Economic Injury Disaster Loan?

Please start your application at the SBA Online Disaster Loan Assistance Portal AND apply for business consulting online or contact us at admin@northcoastsbdc.org (707) 445-9720 x210 to be paired with a SBDC business advisor who will help you through the application.

You can also download the Disaster Loan Paper Application Form and start pulling together your financial data offline beforehand, especially if the online system is difficult to access:

  • federal tax returns for the business
  • current business financial statements -- profit & loss, balance sheets
  • personal financial statement
  • schedule of liabilities (what you currently owe)
  • monthly sales figures
  • financial forecasts for sales, COGS etc during period affected by the disaster

Highlights:

  • The loan program is for businesses who can demonstrate their "economic injury is substantial and is a direct result of the declared disaster"
  • These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
  • Loans are up to $2 million per business with ong-term repayments in order to keep payments affordable, up to a maximum of 30 years.The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
  • In reviewing your application the SBA will determine if you’re eligible as a disaster-affected business, and they will also check whether you have available credit elsewhere, which might affect the special rate.
  • Since decisions are made on a case by case basis, once the application is in it could be funded in a few days or it might take much longer. 
  • We have been told that you should still be able to apply for an economic injury disaster loan even if you already have a separate SBA loan.

More on the "Availability of Credit Elsewhere" Limitation:

  • If you tried but weren't able to secure credit elsewhere you do not need a "decline letter" from the lender. SBA will calculate the availability of "credit elsewhere" based upon a cash flow analysis and asset based ratio(s).
  • If the SBA determines you are/were able to secure credit elsewhere you can still request help through the SBA COVID19 Disaster Loan Program, thought it may affect the amount offered.
  • If you hope to secure gap funding from a local lender or grantmaker to tide you over until the SBA approval and first payment comes through, keep in mind this guidance from the SBA in San Francisco and discuss with your SBDC business advisor: "[Getting gap funding] does not disqualify them but it could reduce the overall loan amount if it's a duplication of benefits. Here's my recommendation... have borrowers disclose with specificity other local loans or grants they have received and what the proceeds were used for.  And perhaps they can use these other funding sources for financial needs which may not qualify under EIDL use of proceeds. For example: if the business has ordinary operating expenses and a long term debt obligation, use the local grant to help pay long term debt obligation and the EIDL loan to pay ordinary expenses like payroll, accounts receivable.  in theory, that wouldn't be a duplication of benefits."

 

Full Formal Announcement from SBA on 3/16/2020: SBA COVID19 Disaster Loan Program Open for Applications

For additional information, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov or visit www.sba.gov/disaster.

U.S. Small Business Administration is now accepting applications for low-interest federal disaster loans for working capital (Economic Injury Disaster Loans) for small businesses and private, non-profit organizations in designated counties of California and other states to help alleviate economic injury caused by the Coronavirus (COVID-19).

To access SBA assistance, go to the Disaster Loan Assistance portal.  You can click on “Eligible Disaster Areas” to see what counties have been designated as coronavirus disaster affected.  As of March 16, 2020, the following 35 California counties were designated: 

Alameda, Alpine, Amador, Calaveras, Contra Costa, El Dorado, Imperial, Kern, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Napa, Orange, Placer, Riverside, Sacramento, San Bernardino, San Diego, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tuolumne, Ventura, Yolo

Economic Injury Disaster Loans are working capital (rather than loans for physical damage) to help small businesses and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster.  These loans are intended to assist through the disaster recovery period.

Federal law limits these to $2,000,000 maximum for alleviating economic injury caused by the disaster, and the actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit.  SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates.

These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.  The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible.  The interest rate for non-profits is 2.75%.

SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years.  Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

To apply for an Economic Injury Disaster Loans, click on “Apply Online” and create an account and password.  Then submit your application.  An explanation of SBA disaster application loan process is here.  The application requires submitting the following forms (copes of which are available here):

Business Loan Application (SBA Form 5) completed and signed by business applicant.
IRS Form 4506-T completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).
Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available. 
Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.
Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).

Additional information may also be necessary to process your application:

Complete copies, including all schedules, of the most recent Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
If the most recent Federal income tax return has not been filed, a year-end profit and loss statement and balance sheet for that tax year is acceptable.
 A current year-to-date profit and loss statement.
Additional Filing Requirements (SBA Form 1368) providing monthly sales figures.

Apply Now

It all starts here. Complete the application and submit your request. A member of the SBDC will follow up with you and help you achieve your small business goals -- at no cost to you.
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Funded in part through a cooperative agreement with the U.S. Small Business Administration. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA or HSU Sponsored Programs Foundation.