Coronavirus (COVID-19): Small Business Guidance and Loan Support for Paycheck Protection Program and Others
The economic crisis hitting small business owners is moving fast, so we wanted to quickly share with you details of provisions offered under the CARES Act as they relate to loan, grant, and debt relief programs currently being offered.
Our firm is providing assistance and services for small businesses, independent contractors, and sole-proprietors to file and claim relief through these programs. We are working directly with lenders to prepare expedited applications that will contain all supporting information. Due to the banks being inundated with requests, intermediaries like our firm ensure the orderly filing of applications that simplify the process for borrowers and lenders. We expect that applications prepared by our firm will be processed faster by lenders. We will also assist with obtaining forgiveness of loans where applicable.In many cases, lenders will compensate our firm for some or all of the services.
For more information on obtaining assistance with the Paycheck Protection Program or the Economic Injury Disaster Loan and Grant – please contact us.
Paycheck Protection Program
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
Under this program:
- Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
- Loan payments will be deferred for six months.
- If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
Economic Injury Disaster Loans and Loan Advance
To apply for a COVID-19 Economic Injury Disaster Loan, click here. For assistance, please contact our office.
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
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. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
SBA Debt Relief
The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis.
Under this program:
- The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
- The SBA will pay the principal and interest of current 7(a) loans for a period of six months.
SBA Express Bridge Loans
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
- Up to $25,000
- Fast turnaround
- Will be repaid in full or in part by proceeds from the EIDL loan
Find an Express Bridge Loan Lender by connecting with your local SBA District Office.
The above information is provided by the SBA at this link: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
For more information and for assistance with these programs, please contact us.
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