Has Your Business Been Affected by COVID-19?
It’s scary, it’s making us all stay at home in quarantine, and it’s affecting TONS of businesses in the United States and across the world. We’ve put together a guide of resources to help you and your business during these tough times.
Resources by the United States Chamber of Commerce
The United States Chamber of Commerce has published a guide about “Everything You Need to Know About Coronavirus Federal Small Business Stimulus Aid Programs” that includes a multitude of explanations for the different loan programs.
Not only did the United State Chamber of Commerce publish a guide on Federal Small Business Stimulus Aid Programs, but they have also publish a resource on how “How to Get an SBA Coronavirus Emergency Loan”. According to the US Chamber:
“The expanded EIDL loan program also offers up to a $10,000 emergency cash advance that may not need to be paid back.”
Resources by the Small Business Administration
The United States Small Business Administration has several different loan options available to Small Businesses affected by the Coronavirus.
Paycheck Protection Program
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
Under this program:
Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
Loan payments will be deferred for six months.
If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
Economic Injury Disaster Loans and Loan Advance
To apply for a COVID-19 Economic Injury Disaster Loan, click here.
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan 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 to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
SBA Debt Relief
The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis.
Under this program:
The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
The SBA will pay the principal and interest of current 7(a) loans for a period of six months.
SBA Express Bridge Loans
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
The Terms Are:
Up to $25,000
Fast turnaround
Will be repaid in full or in part by proceeds from the EIDL loan
Find an Express Bridge Loan Lender by connecting with your local SBA District Office.
Resources by Creditcards.com
Creditcards.com has financial experts that broke down various options available to help small businesses and which one is best depending on the situation, including:
Alternative financing providers
Personal credit cards and loans
Crowdfunding
“Many small business owners whose businesses were hurt by COVID-19 have been waiting for unemployment or government loans to tide them over until shelter-in-place restrictions are lifted.
Given the overwhelming number of applications, many businesses will likely be waiting a while. And the Small Business Administration’s Paycheck Protection Program is not accepting new applications due to a lack of funding (though President Trump has signed into law a new stimulus package that will inject an extra $320 billion into the program.)”
Check out their article here or click this: https://www.creditcards.com/credit-card-news/loan-options-small-business.php
Resources by Bankrate
With more than 3.4 million Americans on forbearance plans and with that number expected to rise, the team at Bankrate created a guide to help answer borrowers' most common mortgage relief questions. This includes information about the CARES Act, the pros and cons, and what payment relief options are available to homeowners in these unprecedented times.
“The forbearance program is obviously designed to deal with the characteristics of this pandemic. This isn’t related to mortgage underwriting or a downturn in the economy — it’s a sudden disruption that’s believed to be temporary in which people can resume their normal life,” says Ed DeMarco, president of the Housing Policy Council (HPC). “A forbearance is a normal tool in the toolkit, it’s been used with some regularity with natural disasters, or any temporary emergency which disrupts normal living and income.”
Check out their article here or click this: https://www.bankrate.com/mortgages/everything-you-should-know-about-mortgage-forbearance/
Resources by Money.com
With the second wave of COVID-19 just around the corner, some Americans are wondering if the government is going to force another shutdown and how it could further deteriorate the economy. The research team at Money.com recently developed a free resource for businesses that are looking into understanding loans if they can’t wait or qualify for an SBA loan.
The crisis we are living through is multi-layered. In this complex crisis, one of the biggest casualties has been the ‘mom-and-pop’ shops and small businesses of America, which are an essential pillar in the economic stability and the pursuit of happiness of all Americans. They put this guide together to help Americans get back on their feet and save their businesses.
Check out their article here or click this: https://money.com/best-small-business-loans/
