This new program helps small businesses with funds and loans for payroll and other business operating expenses
Businesses are facing challenging times in this current health crisis.
The U.S. Small Business Administration is committed to help bring relief to small businesses and nonprofit organizations suffering because of the Coronavirus (COVID-19) pandemic.
In addition to traditional SBA funding programs, the CARES Act established several new temporary programs to address the COVID-19 outbreak.
Here’s 4 programs provided for small businesses. Below, 2 of the most beneficial are explained.
On March 27, 2020, President Trump signed into law the CARES Act, which provided additional assistance for small business owners and non-profits, including the opportunity to get up to a $10,000 Advance on an Economic Injury Disaster Loan (EIDL).
The Coronavirus Aid, Relief, and Economic Security Act (#CARESAct) established a new $349 billion Paycheck Protection Program, which will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed.
The new program will help small businesses with their payroll and other business operating expenses.
It will provide critical capital to businesses without collateral requirements, personal guarantees, or SBA fees – all with a 100% guarantee from SBA. All loan payments will be deferred for six months. SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest.
1. Economic Injury Disaster Loan (EIDL)
Small business owners in all U.S. are currently eligible to apply for a long term low-interest loan due to Coronavirus (COVID-19).
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.
- Please click link below to apply. It will take about 15 minutes to apply.
2. Advance loan
The Advance may be available even if your EIDL application was declined or is still pending, and will be forgiven.
If you wish to apply for the Advance on your EIDL, please visit www.SBA.gov/Disaster as soon as possible to fill out a new, streamlined application.
In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.
- Please click link below to apply. It will take about 10 minutes to apply.
Also, subscribe to email updates via www.SBA.gov/Updates and follow on Twitter at @SBAgov for the latest news on available SBA resources and services.
If you need additional assistance, you can find your local SBA office and resource partners at www.SBA.gov/LocalAssistance.
If you have questions, you may also call 1-800-659-2955.
Looking for mre #COVID19 small business guidance and loan resources?
Go here. ▶️ https://www.sba.gov/coronavirus
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