FORM 1368 Additional Filing Requirements, ECONOMIC INJURY DISASTER LOAN WORKSHEET
FROM: Nancy McKee,
State Outreach and Rural Development
662-832-5886 (Mobile Office Cell)
PAGE 1: THIS IS A PAST AND FUTURE PROJECTION SHAPSHOT OF YOUR SALES ONLY..
- FILL IN the breakout of Monthly Sales Figures 17,18,19, and YTD 20 through March…
- Estimate what you ASSUME the numbers will be for those months today through December 2020…assuming the disaster and recovery continues through December 2020.
- Add up the annual totals, Hint…The years 17,18,19 should be close to your tax document. THE TOTAL FOR 2020 Estimate will give you a projection for the expected Net Sales for this year. (This number will be used on Page 2).
PAGE 2: THIS IS THE PROJECTION
This Financial Forecast will ILLUSTRATE what the INCOME and EXPENSE for the business WILL BE during the period affected by the disaster until NORMAL OPERATIONS RESUME. (March-December)
- Fill in your expected Net Sales for the year (page 1 total) , less Cost of Goods and the Total will give you …your 2020 Gross Profit. (remember this is a FORECAST)
- Fill in your MONTHLY Expenses for the business-(This is with the goal of keeping your doors open and operating.) multiply by 10 months and add January and February expenses…for your annual total expense.
- Subtract the Annual Gross Profit from the Annual Total Expenses, and that will give you a Net Profit Loss (before income taxes) …That should be close to the loan you are looking for…
DO NOT PANIC….ITS WHY WE ARE HERE
Fourth: ….Pour yourself your favorite beverage, coke or wine…now…put your feet up, relax…. that is what we are here for…to help ….so the fun part begins….take a sip close your eyes and think…
Think about how this financial information…and how it effects your business…look at the projections…do they adequately show your economic loss?
Now, OPEN UP a blank document on your laptop or get out a clean sheet of paper… and WRITE YOUR STORY ….. write a personal business NARRATIVE that establishes WHO YOU ARE AND WHY YOU ARE SUFFERING THIS ECONOMIC LOSS…
TELL YOUR STORY….Why?
Every person has a different experience in this disaster…this is YOUR STORY…YOUR LOSS…YOUR SITUATION…its different in every business, every Community, every State, every Region of our Nation.
The person reading your application is dealing with people-from every State, every Community…make no ASSUMPTIONS that they know about the Jackson or the Mississippi business environment or market.
Ideas for the Narrative:
TELL YOUR STORY and carry your examples back to the numbers you wrote on your sheet of paper.…tell what happened, why it happened, who was effected, how many people depend on your business and you.
Your employees, how many jobs are going to suffer? How many contractors and sub contractors will this also effect that are not in your numbers? How will this effect the 2021 ….the challenges of restarting a momentum that was roaring….and came to a standstill…..
* This Narrative is where you show and explain WHAT YOU NEED TO SURVIVE and keep jobs working and get the momentum beginning to flow again!
* This is where you Explain How Much you need to Borrow, and for how long….Backed up by your numbers and your Narrative (your story).
You may write one Narrative combined reflecting on both sheets, or be specific and have them each reflect the different Economic Losses.
The First Page Narrative talking about your sales……what was cancelled? who is not paying? what is your worst case scenario….specifically, why? how? because?
The Second Page Narrative can talk about those numbers and how you can talking about surviving the future.
This is the page that will accompany your numbers.. the numbers Compliment the Story. This will be the “Narrative of the Business Plan” if you do the 7A Loan or the Narrative of form 1368 if you decide the EIDL is a better path for your business loan.