The SBA is offering several different programs to help business owners during these difficult times. The COVID-19 virus has caused many businesses to temporarily close, slow down operations, and suffer significant losses. But you don’t have to loss everything. There are a range of programs available to help small businesses like yours.
“On Friday, March 27, 2020, the President signed into law the CARES Act, which contains $376 billion in relief for American workers and small businesses.” https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
Business Brokers & Consultants is working hard to make sure our clients and businesses throughout the Louisville Metro Area understand the options available to them. This post is not a definitive guide to every option. It is a portal designed to get small business owners to the primary sources of key information. The three aspects of the CARES Act covered below can be accessed in combination. In other words, you may be eligible to apply for or receive help from all of these programs.
You can get an overview of all the CARES Act here https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
Economic Injury Disaster Loan Emergency Advance
“ In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.”
You can learn more about eligibility at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
Apply for the Economic Injury Disaster Loan Emergency Advance directly on the SBA’s website here: https://covid19relief.sba.gov/#/
SBA Debt Relief Efforts
If you already have an SBA 7(a), 504 or microloan you are eligible for debt relief.
“As part of SBA’s debt relief efforts, 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.”
You do not need to do anything to receive this relief. However, if you have not been contacted by your SBA insured Lender (i.e. the Bank to whom you make regular payments) contact your Lender directly. Lean more about SBA debt relief here https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief
Paycheck Protection Program
The Paycheck Protection Program is designed to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. This program is a bit more complex, but it does offer loan forgiveness provided certain criteria are met. You can learn about the program and loan forgiveness here https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp#section-header-1
You must apply for a Paycheck Protection Program Loan through any “existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, (or) Farm Credit System institution that is participating.”
Our experience is that lenders are inundated with applications for the Paycheck Protection Program. We are not a lender but can put you in touch with approved lenders and you are welcome to call our offices for assistance.
The SBA also has a link to eligible lenders https://www.sba.gov/paycheckprotection/find
We recommend that you go to a bank or lender with whom you have an established relationship, and have all your payroll records and loan forms in order. Again, we are not a lender, but you are welcome to call our offices for guidance.