The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was just passed by Congress are intended to assist business owners with whatever needs they have right now. When implemented, there will be many new resources available for small businesses, as well as certain nonprofits and other employers. This guide provided by the U.S. Senate Committee on Small Business and Entrepreneurship lists information about the major programs and initiatives that will soon be available from the Small Business Administration (SBA) to address these needs.
A few of the programs recently released are listed below. For assistance with these programs you may call us at 229-423-4321 or email any of the following financial professionals at Community Banking Company of Fitzgerald.
Larry Stevenson firstname.lastname@example.org
Mark Turner email@example.com
Debra Weil firstname.lastname@example.org
Barry Peavey email@example.com
Cindy Freeman firstname.lastname@example.org
Madison Smith email@example.com
Paycheck Protection Program (PPP) Loans
Do you need capital to cover the cost of retaining employees? Then the Paycheck Protection Program might be right for you.
The program would provide cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans would be forgiven, which would help workers remain employed, as well as help affected small businesses and our economy snap-back quicker after the crisis. PPP has a host of attractive features, such as forgiveness of up to 24 weeks of payroll based on employee retention and salary levels, no SBA fees, and at least six months of deferral with maximum deferrals of up to a year. Small businesses and other eligible entities will be able to apply if they were harmed by COVID-19 between February 15, 2020 and August 9, 2020. This program would be retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls. Loans are available through August 9, 2020.
Click HERE for frequently asked questions on the Paycheck Protection Program.
Economic Injury Disaster Loans & Emergency Economic Injury Grants
Do you need a working capital loan to help cover the temporary loss of revenue due to the COVID – 19 virus? Then the SBA Economic Injury Disaster Loan and Emergency Economic Injury Grant might be right for you.
The SBA’s Economic Disaster Loan Program provides small businesses with working capital loans up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue. In response to the COVID-19 virus, small business in all U.S. states are eligible to apply. EIDL loans are applied for directly with the U.S. Small Business Administration.
Click HERE to apply for an EIDL loan directly with SBA
In addition to an EIDL loan, Emergency Economic Injury Grants can provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
Click HERE for frequently asked questions on Economic Injury Disaster Loans and Emergency Economic Injury Grants
Small Business Debt Relief Program
Do you need help with payments on your existing SBA loan? The Small Business Debt Relief Program could help.
The Small Business Debt Relief Program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law.
Click HERE for frequently asked question on the Small Business Debt Relieft Program.