Small businesses has been the most adversely effected form of business affected by the corona virus pandemic. An adverse effect that is devastating in itself and might close up small businesses.
Things that were done in response to the crisis
In response to the crisis, the senate established; the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide relief for small businesses.
With $349 billion for the new Paycheck Protection Program (PPP); the provision of federally backed loans up to $10 million for qualified small businesses and nonprofits.
The CARES Act also lift some restrictions for other SBA programs like the SBA 7(a) loan support program and Emergency Injury Disaster Loans (EIDL).
Here, we review some loan options to help you navigate the coronavirus crisis.
- Paycheck Protection Program
The PPP was created under the CARES Act in view of the strains the coronavirus pandemic might have placed on small businesses. PPP was established by the CARES Act and implemented by the Small Business Administration (SBA) Section 7(a) with support from the United States Department of the Treasury.
The PPPs aids small businesses by providing you with resources to fund payroll, hire back employees that were laid off due to the pandemic, pay interests on rents and mortgages, and cover utilities. Click here for more on small business paycheck protection program.
What qualifies me for the loan? You might ask. To be eligible for PPP your business must have been in operation since February 15, 2020 and must have had 500 or fewer employees under your pay roll. Your business must also be able to meet the applicable SBA size regulations for the specific industry. As long as you meet the listed program’s standards you become eligible and can apply.
- Emergency Injury Disaster Loans (EIDL)
The Emergency Injury Disaster loan is also part of the SBA’s plan to provide economic relief to small businesses all over the country. Every small business owner is eligible for a sum of $10,000 after application and due consideration. The loan is given without any intent of repayment.
Acquisition of the loan helps small business owners to overcome economic stress as regards the temporary loss of revenue and payment of fixed debts. This program is essentially for small business with a fewer than 500 employees. Learn more about emergency injury and disaster relief loan programs.
Meeting all their standardized SBA requirements like a tribal small business concern qualifies you for the loan. EIDL availability is from January 31, 2020 through December 31, 2020.
- Emergency Grant
Emergency grants can be applied for alongside an EIDL. As a matter of fact you can request for it from the EIDL administrator. The good thing about this grant is that even if your EIDL request is not approved, you can still get this emergency grants.
It is also provided by the government for small business owners without any intent of repayment. Emergency grants are available till December 31, 2020.
This program can be gotten alongside the PPP and your outstanding loan debt accrued as a result of the pandemic will be forgiven.
The kind of relief all the options mentioned above will provide small businesses cannot be overemphasized. Small business owners should embrace one of the options and apply. These programs were put in place for you, small business owners.