Friday, April 3rd marks the day businesses, affected by the COVID-19 outbreak, can apply for a Small Business Association (SBA) loans.
As part of one of the most ambitious economic relief programs in U.S. history, the loan program will help many small businesses survive the fallout of this global pandemic. But let’s go over the (2) loan types so you know what’s available.
The 1st Loan Type: Economic Injury & Disaster Loans (EIDL) offers assistance only to small businesses when the Small Business Association (SBA) determines they are unable to obtain credit elsewhere.
The 2nd Loan Type: Paycheck Protection Program (PPP) with $349 billion in funding is designed at preventing job loss and small businesses failing due to the COVID-19 pandemic. The PPP provides forgiveness for small business loans for keeping employees and designed for small employers, self-employed individuals, and “gig economy” workers.
Now, to help you make the process as convenient as possible, we’ve gathered the latest information. We have useful links and information that will help determine if your company is eligible for these loans and if so, where and how to apply for them.
WHAT IS A SBA LOAN?
The $2 trillion federal coronavirus relief package, officially known as the CARES Act, includes nearly $350 billion for a small business loan program called the Paycheck Protection Program. The program is designed to get cash into the hands of small businesses quickly, with less red tape than the SBA’s existing loan programs. It is designed to incentivize business owners to retain employees by offering them loan forgiveness.
At Fingercheck, we are currently looking at options to help our clients procure loans and will make an option available to you when it is finalized.
In the meantime, below, please find links on the SBA loan program that will direct you to the application form for borrowers and fact sheets about the program for both lenders and borrowers.
DOES MY SMALL BIZ QUALIFY FOR A LOAN?
Banks and other lenders will distribute the $349 billion in small-business loans under which businesses with 500 or fewer employees can receive loans of up to $10 million. Loans will be forgiven if businesses use the funds to cover payroll costs and other operating expenses in the eight weeks following loan origination. To learn more please visit the SBA webpage.