The SBA is working directly with state Governors to provide targeted, low-interest loans to small businesses and nonprofits that have been severely impacted by the 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. Small business owners in many states are now eligible to apply.
Now is the time to take action for your small business. Deadlines are nearing and opportunities will come to a close for funding to assist in recovery efforts. Please consider the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Program (EIDL) for your recovery efforts. Please note that PPP will close on June 30th.
To further meet the needs of small businesses and non-profits, the SBA has reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants still experiencing economic impacts due to COVID-19.
SBA’s EIDL program offers long-term, low interest assistance for a small business or non-profit organizations. These loans can provide vital economic support to help alleviate temporary loss of revenue. EIDL assistance can be used to cover payroll and inventory, pay debt or fund other expenses that are not already covered by a Paycheck Protection Program loan. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%. To keep payments affordable for small businesses, SBA offers loans with long repayment terms, up to a maximum of 30 years. Plus, the first payment is deferred for one year. Additionally, the EIDL Advance will provide up to $10,000 ($1,000 per employee) of emergency economic relief to businesses that are currently experiencing temporary difficulties, and these emergency grants do not have to be repaid. The EIDL program will remain open until the funds are depleted or until 12/30/20.
For additional information or to apply, please visit the SBA disaster assistance website at SBA.gov/Disaster.
Note: Eligible businesses may apply for both EIDL and Paycheck Protection Program (PPP) loans.
The SBA just issued much-awaited guidance, allowing borrowers to claim forgiveness of their Paycheck Protection Program (“PPP”) loans. The new guidance implements the single most enticing aspect of the CARES Act’s marquee borrowing initiative for small businesses and self-employed individuals—loan forgiveness. The SBA’s Loan Forgiveness Application provides detailed instructions for borrowers and the calculation of PPP loan forgiveness. It comes as a welcome development for small businesses, many of which have already begun spending their PPP funds and have been following private and informal guidance and resources while they awaited official SBA directives.
Under the new procedures, a borrower must request the forgiveness of PPP loan proceeds by filing SBA Form 3508, Paycheck Protection Program Loan Forgiveness Application. The application has four components: (1) the PPP Loan Forgiveness Calculation Form; (2) PPP Schedule A; (3) the PPP Schedule A Worksheet; and (4) an (optional) PPP Borrower Demographic Information Form. Borrowers are required to submit items (1) and (2) to their lender.
On March 27, 2020 the U.S. federal government signed the CARES Act into law—a big coronavirus relief bill aimed at supporting small businesses through this difficult time.
One of the measures in the bill is the Paycheck Protection Program—here’s everything you need to know.
The Paycheck Protection Program is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This is a nearly $350-billion program intended to provide American small businesses with eight weeks of cash-flow assistance through 100 percent federally guaranteed loans. You can read the bill in its entirety here. (Information provided by BENCH)
We recognize that your businesses are impacted the COVID-19 pandemic. To help ensure the safety of everyone while we continue to serve disadvantaged businesses, we are providing the following guidance on the certification topics below until May 30, 2020.
Additional guidance on other program topics will be forthcoming.
We appreciate your patience as we identify other potential effects of COVID-19 on small businesses. Please take all necessary precautions to remain safe, continue the good work.
More resources are provided by the Department at https://www.transportation.gov/coronavirus
Bakari Sellers (Political commentator and Attorney) and Kenneth Kelly (Chairman, National Bankers) join Bishop T.D. Jakes to discuss the economic impact of the COVID19 crisis, how it is dramatically reorienting our society, and what the government relief package means for American households and small businesses. Go to irs.gov to get/check the status of your stimulus impact payment.
The MSA SBTRC is committed to disadvantaged businesses as the
COVID-19 public health emergency continues to impact the Nation. Please take all necessary precautions to remain safe. Thank you.