07 Apr You Can Access $377 Billion in Small Business Relief during COVID-19
UPDATED April 27th. 2020: The SBA will resume accepting Paycheck Protection Program applications from participating lenders on Monday, April 27, 2020 at 10:30am EDT at the Small Business Association (SBA) website.
UPDATED April 21st. 2020: The money allocated from the CARES Act has run out for the moment, meanwhile congress is working on allocating more funds to aid small businesses but there is no solid plan as of yet. When the funds were first depleted we were asking people to continue to apply, the applications have been closed for now on the Small Business Association (SBA) website. If you do or do not have a business bank account you can use any of these three lenders who are currently accepting applications for the SBA Paycheck Protection Loan in preparation for when more funds are released. Small business owners can apply at of the lenders listed below:
Please stay tuned as we will update this page and our social media with the latest information about these SBA loans and COVID-19.
On March 27th, the CARES Act was signed into law in order to provide economic relief during COVID-19. Included in the act, $377 billion allocated to small business relief in forms of loans and grants. The Small Business Administration(SBA) is in charge of setting up programs for relief.
What options do you have?
- The Economic Injury Disaster Loan (EIDL)
- Paycheck Protection Program (PPP)
- The Bridge loan is available to help cover the cost while you wait for processing on other loans.
Important to note- Any existing 7(a), 504, and microloans prior to Sept. 27, 2019 will be covered for six months and other loans may be placed on automatic deferment. These benefits aren’t restricted to citizens, any business with less than 500 employees or those that fall under different specifications per industry.
Economic Injury Disaster Loan
This loan is more lenient on how it can be used, and there is also the possibility of a $10,000 grant. Aside from the $10,000 grant, any other amount takeout will still be needed to payback and are not eligible for forgiveness.. You can apply on the SBA website here https://covid19relief.sba.gov/#/
Paycheck Protection Program
Majority of the amount granted under the CARES has been allocated to the Paycheck Protection Program, this is meant to help small businesses maintain payroll and avoid layoffs. This loan is completely forgivable if the entirety of it is put towards payroll, benefits, rent, and utilities. To maintain 100% forgiveness, employment must be maintained at 100% with no pay reduction, any reduction will lower the forgiveness by the percent of the reduction. After 8 weeks, the borrowers need to turn in proof that the money was used for payroll in order to get forgiveness.
You can apply now through a participating lender, find one here: https://www.sba.gov/paycheckprotection/find
To learn more about EIDLE and PPP watch the webinar from the SBA:
For additional assistance, you can reach out to the Small Business Administration District Office in Las Vegas here: 702-388-6611