These offerings include:
The Paycheck Protection Program
SBA Disaster Assistance in Response to the Coronavirus
SBA Debt Relief
Consider the eligibility for each program and what each one could provide to your business.
The Paycheck Protection Program (PPP) is a loan that helps businesses keep their workforce employed during the Coronavirus crisis. The loan has some stipulations. In order for the loan to be forgiven, employers must keep all employees on payroll for 8 weeks and use 100% of the funds for payroll, rent, mortgage interest, or utilities.
If at least 75% of the forgiven amount are funds used for payroll, the loan will be fully forgiven. Otherwise, not all loan funds may be forgiven.
Lending institutions can start processing loan applications on April 3, 2020 and the program will be open until June 30, 2020.
Small businesses, sole-proprietorships, independent contractors, self-employed persons, and private non-profit organizations that employ 499 employees or less are able to apply. Additionally, there is some room for employers in the hospitality and food industry. Employers within these industries can be eligible if they have separate locations with less than 500 employees at each location.
To find an eligible lender, you can do so here.
The U.S. Small Business Administration is offering Small Business Owners in all U.S. States and territories low-interest federal disaster loans for working capital. These loans are meant to help small business owners suffering from coronavirus. The loan includes an advance of up to $10,000.
Who Can Apply For the SBA Disaster Assistance?
All small businesses in the U.S. States and territories are eligible to apply for the loan.
To apply for this loan, you can do so here.
The third debt relief option is going to be done through your Loan Servicing Office. In this program, the SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloan borrowers for 6 months.
For new 7(a), 504, and micro-loans, the SBA will automatically pay the principal, interest, and fees, if they were issued prior to September 27, 2020.
To confirm the status of your loan, reach out to your Loan Servicing Office using one of the following:
Birmingham Disaster Loan Servicing Center
El Paso Disaster Loan Servicing Center
We understand this information can be overwhelming and a glance at your books may not provide you with all the information you need in order to make an informed decision.
If you would like a free consultation in regards to which program may be best for your business, please schedule a meeting with us here.
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