Wanted to pass along the below information in case helpful for your business. ** Please note this information was pulled together quickly, primarily from the SBA website, and has not been vetted or reviewed for absolute accuracy. I wanted to help raise awareness of helpful funding options for businesses in the current climate and encourage anyone considering these programs to do further research before relying on this article. **
I think the Forbes article at bottom does a good job of running down the options – primarily two at the Federal level.
- Economic Injury Disaster Loans – includes potential $10k cash grant (can be forgiven)
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- From SBA site: 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
https://www.sba.gov/page/disaster-loan-applications
- From SBA site: 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
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- Paycheck Protection Program Loan Guarantee – bit more complicated to apply for (done through SBA approved bank).
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- From SBA site: SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
https://www.sba.gov/funding-programs/loans/paycheck-protection-program
- From SBA site: SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
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Very good Forbes article with more details on these programs:
Happy to chat about the above and assist if needed. I’ve completed a couple of the EIDL (first link) applications and was quite quick / simple to complete. With so much uncertainty ahead, good to have potential sources of funds accessible just in case.
Cheers,
– John
