In light of the recent situation, I want to review some relief options that are becoming available and some federal level programs. There are also state and local programs available. I encourage you to reach out to your local Chamber of Commerce for local relief programs.
Many of my clients have applied for the Economic Injury Disaster Loan with the SBA. This is a good resource, and if you have not applied I would encourage you to do so. There is no downside (only a credit inquiry on your credit report) and you don’t have to accept the loan if approved. Submitting the application will also open the door to the loans available through the CARES Act, namely Small Business Interruption Loans and the Payroll Protection Program.
Below is some information from the SBA about the disaster loans and advances.
Payroll Protection Program loans. These are the loans you’ve probably been hearing about in the media that have the potential to be forgiven. Click on the graphic below for an information sheet from the US Chamber of Commerce that addresses eligibility, other details, and questions about the payroll protection program. It’s the most useful summary of this I’ve seen so far.
Economic Injury Disaster Loans administered by the Small Business Administration(SBA). Available to businesses and nonprofits with less than 500 employees, or, if over 500 employees and the business meets SBA industry guidelines for small business
Notice from the SBA. 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). This Advance may be available even if your previous EIDL application was declined or is still pending, and will be forgiven.
If you wish to apply for the Advance and the 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 if you already applied for an EIDL
Small Business Interruption Loans – These loans are to be administered in conjunction with the SBA and local lenders. Application guidance forthcoming. In the meantime, apply for the SBA EIDL which can help initiate the process for these loans once available.
Please don’t hesitate to reach out if I can help you with any of these. And please share what you know with other business peers so we can all get through this as best possible!