Coronavirus Resources for Small Businesses
Small businesses are hurting because of COVID-19. There are several resources available to help these business as they navigate these uncertain times and difficult circumstances.
Paycheck Protection Program:
PPP provides small business with loans to help with payroll costs, mortgages, rent, and utilities. The CARES Act, written and passed by Congress, established the program with $349 billion. These loans are intended to help with job retention and to provide eight weeks of payroll to employees.
Eligibility for PPP:
Small businesses, nonprofits, veteran organizations, tribal concerns, self-employed, sole proprietorships, or independent contractors
500 or fewer employees
Loans can be up to 2.5X a small business’ average payroll costs, but cannot exceed $10 million
These loans will be forgiven in full if used for payroll costs, interests on mortgages, rent and utilities. The Department of Treasury recommends using at least 75% of the loan for payroll.
Small businesses and sole proprietors can start applying on April 3, 2020.
Independent Contractors and self-employed individuals can start applying on April 10, 2020.
There is a funding cap, so applying as soon as possible is recommended.
To apply, go to any SBA 7(a) lenders or a federally insured depository institution, federally insured credit union, or Farm Credit System Institution that is participating. Participating lenders, terms, and more info is available here: www.sba.gov.
Information from the Chamber of Commerce about PPP is available here: https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf
The USDA compiled frequently asked questions for farmers and ranchers about PPP. That FAQ is available here: https://www.usda.gov/coronavirus
SBA Economic Injury Disaster Loan:
The U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program helps small businesses, agricultural corporations and private or non-profit organizations by providing low interest loans—that will not exceed 4 percent—to help businesses recover from damages endured due to the COVID-19 pandemic.
Congress allocated $20 million in assistance loans in the first week of March, then, on March 27, passed another emergency relief package that provides an additional $562 million to the EIDL program
Any small businesses who have been negatively affected by the virus are encouraged to apply.
For more information about either of these programs, or to apply, please go to this link: https://www.sba.gov/coronavirus. If you’re in need of specific guidance from the SBA about the program, they can be reached at 1-800-659-2955.
The House Small Business Committee has compiled a guide filled with information about the Coronavirus Aid, Relief and Economic Security (CARES) Act. That information is available here.
Ask Alice also compiled a list of resources that may be helpful to small businesses owners as they navigate this uncertainty. Their website is available here: https://www.covid19businesscenter.com/
Additional Important links are available below:
Paycheck Protection Program (PPP): https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp
Economic Injury Disaster Loan (EIDL) Emergency Advance: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
SBA Express Bridge Loans: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-express-bridge-loans