If you're experiencing tough financial times with your business due to the COVID-19 isn't time to lay back otherwise stand up and let's fight together. On Friday, March 27, 2020, the President signed into law the CARES Act, which contains $376 billion in relief for American workers and small businesses. This act includes the following programs:
1. EIDL, economic injury disaster loan - eligibility:
< 500 employees
> 500 employees but consider small business under SBA size standards
Alternate Size Max, the maximum tangible net worth of the applicant is not more than $15,000,000. and (ii) the average net income after Federal income taxes is not more than $5,000,000.
private non-profit organizations
sole proprietors
independent contractors
Eligible entities may qualify for loans up to $2 million at a 3.75% interest rate, 2.75% for non-profit organizations. First payment deferred for one year, yes one year. In addition up to $10,000 in advance, that you'll not payback. Awesome, right?"
These funds can be used for:
Fixed debts
Payroll
Business operation costs
Accounts payable
➡️ to file an application: https://covid19relief.sba.gov/#/
2. PPP, paycheck protection plan - eligibility same as EIDL.
Eligible entities may qualify for:
Potential 100% Loan Forgiveness for 8 weeks of qualified loan uses.
Fixed Low-Interest Rate at 1.00%
No Collateral Required
2-Year Terms
Loans can be for up to 2.5 times your average monthly payroll costs for the past year. That amount is subject to a $10 million cap.
The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan are made; and employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to the likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for 6 months.
➡️ application sample: https://www.sba.gov/sites/default/files/2020-03/Borrower%20Paycheck%20Protection%20Program%20Application_0.pdf
3. SBA Debt relief
Under the Debt Relief program, SBA will automatically cover payments on eligible loans, 7(a), 504, or microloans including principal, interest, and fees, for a period of six months. None amount will need to be repaid.👍 For new borrowers, SBA will cover loan payments, including principal, interest, and fees, if the borrower applies for and receives a 7(a), 504, or microloan prior to September 27, 2020.
How can I apply for this relief?
It is best to check in with your lender SBA division directly to determine if you qualify under this program and to ensure payments are not missed. If you are eligible for this program, Debt Relief should be provided automatically by SBA without you taking additional action.
4. SBA Express Bridge loan
This pilot program allows SBA Express Lender's authority to deliver expedited SBA-guaranteed financing on an emergency basis for disaster-related purposes to eligible small businesses, while the small businesses apply for and await long-term financing. The advanced amount will be up to $25k and applications will be open until 9/25/2020.
We've already applied for some of these programs, and we encouraged you to do the same as soon as possible, remember that some of these programs are first come first serve. Apply now, and don't let COVID-19 end with what you've been working so hard for years "your business".
Hard times don’t create heroes. It is during the hard times when the ‘hero’ within us is revealed.” – Bob Riley
Comments