Financial relief for small businesses who are complying with the COVID-19 mandates is on the way starting today! In order to flatten the curve, many businesses around the country deemed as non-essential have been asked to close their doors temporarily. We are strong and we can do this. The U.S. has 30 million small businesses which employ half of the private workforce – thank you, small business owners! Help is on the way.
In response to this crisis, the U.S. government passed the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act to help individuals, businesses, and government organizations. As part of the CARES Act, $349 billion is earmarked to provide financial relief for small businesses. With money available, small businesses need to act quickly as some estimate that small businesses will need $1 trillion to replace lost revenue over the next three months, about 3 times the current package.
While we don’t claim to be experts on the matter, we want to make our customers aware of the options and point them in the right direction.
Paycheck Protection Program
A vital part of the CARES Act is the Paycheck Protection Program, a $349 billion loan program available through the Small Business Administration. The purpose of the Paycheck Protection Program is to help small businesses keep their employees on the payroll. For example, the money can be used for payroll costs, interest on mortgages, rent, and utilities. The loan can be fully forgiven if 75% of the forgiven amount is used for payroll and employees are kept on the payroll for eight weeks. For more information, read all of the details on this fact sheet from the Department of Treasury’s website. The U.S. Chamber of Commerce has also published a Small Business Guide and Checklist.
Economic Injury Disaster Loan
The Small Business Administration also offers a disaster loan for small businesses suffering from temporary revenue loss. Loans of up to $2 million per business are available and loan advances of $10,000 can be issued within 3 days of application.
Small Business Administration Debt Relief
The SBA is offering debt relief to small businesses with existing SBA loans.
SBA Express Bridge Loans
Small businesses that already have a relationship with an SBA Express Lender can get up to $25,000 quickly.
All SBA funding options can be reviewed here.
We Will Get Through This Crisis
Americans are resilient and we’re no strangers to hard times. History has shown that we sacrifice, unite, pray, and push and pull each other through to the other side. Covid-19 will not break or defeat us. It will make us stronger. In the meantime, protect your small business by applying for the assistance available from the SBA and through the CARES Act. We’ll see you on the other side.
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