If government mandated, COVID-19 related closures are negatively impacting your business, you may be eligible for federal support. Before you panic, we’ve compiled a list of resources where you can find more information.
The SBA is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Recent legislation (as of March 6) has enabled the U.S. Small Business Association (SBA) to offer $7 billion in disaster assistance loans to small businesses impacted by the virus.
To find out whether or not your area has been officially declared a “Disaster” zone (potentially qualifying you + your business for support), reference this index here.
UPDATE: While the application requirements for an EIDL were originally more extensive, they’ve since simplified it, largely, to submitting gross revenues and your business’s COGS for the most recent year. More info here.
You can apply for a loan at https://disasterloan.sba.gov/ela/, or call 1‐800‐659‐2955 for assistance.
A week ago they were looking for extensive documentation including full 12 month P&L, monthly cashflows, listing of liabilities, etc… now it is largely submitting two numbers (gross revenues and COGS for the most recent year).
For more information regarding eligibility for…
- Economic Injury Disaster Loans
- EDD For Business Owners
- EDD For Business Employees
- Business Interruption Insurance
Check out this this COVID-19 Relief page.
For similar information, in addition to…
Check out the SBA page here.
***As of March 25, 2020, the Express Bridge Loan Pilot Program – SBA-guaranteed bridge loan financing on an emergency basis in amounts up to $25,000 for disaster-related purposes to small businesses – has been expanded to apply to businesses negatively impacted by Coronavirus. For more information, click here.
To learn if your business qualifies for one of the many Federal Stimulus Aid Programs currently being developed, click here.
The Federal Stimulus Bill Key Points:
- Focus on companies with fewer than 500.
- Cover employee pay for 6 weeks.
- No personal guarantee on the loans.
- Waive proving that owner has applied elsewhere.
- Individuals, Sole Props and 1099 people are qualified.
- Interest rate will be no more than 4%
- Max loan to value will be based on average payroll, rent/lease cost per month TIMES 2.5 includes benefits, paid sick leave. Max 10 MM.
- No collateral or personal guarantees required.
- Verify that business was in existence prior to 2/15/20.
- Some portions of these loans can be converted to grants AKA forgiven.
- After the 8 weeks Government will look at expenses, expenditures and it will be dollar for dollar waiver on ability to keep employees. The dollar value will be reduced by # of employees terminated or income lowered.
- Employer payroll taxes can be deferred 50% for 1 year and the other 50% for 2 years.
- Business can request an immediate advance of $10,000 which will be available within 2 weeks and will not have a repayment.
Additionally, this page offers daily COVID-19 updates for small businesses, centralizing both national and local support options, including on-demand, free webinars.