Please find below resources to help you navigate the new business survival tools as well as information to share with your employees about unemployment.
Are you Essential?
Paycheck Protection Program (PPP)
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. This loan has a maturity of 2 years and an interest rate of .5%. THIS PROGRAM WILL BE MADE AVAILABLE THIS FRIDAY AND WILL REQUIRE A BANK AS AN INTERMEDIARY. BOOKMARK THIS LINK AND CHECK FRIDAY – April 4, 2020.
Economic Injury Disaster Loan Application (EIDL)
All small business owners are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. 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. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid. THIS IS LOAN IS DIRECTLY FROM THE SBA VIA THE FEDERAL RESERVE (NO BANK IS INVOLVED), APPLY ONLINE AND TRACK STATUS.
Application – https://covid19relief.sba.gov/#/
SBA Debt Relief Program
The program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis. EXISTING SBA 7(a) CUSTOMERS ONLY Under this program:
· The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
· The SBA will pay the principal and interest of current 7(a) loans for a period of six months.
Additional SBA resources – https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-load-resources