What Your Business Should Know About Relief Options
The U.S. Small Business Administration (SBA) has released a program to help struggling businesses through this period of COVID-19. Nearly $350 billion has been allocated for that purpose in the new economic aid package signed into law. Small businesses, which employ nearly half of America’s private-sector workers, are hemorrhaging, and the loans are meant to help them retain employees or rehire those they let go because of the coronavirus pandemic. However, business owners have found that applying for money to save their businesses was harder than anticipated. Here is what you should know about your options.
What – 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.
Eligibility – This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
Application – Applications will be accepted up to June 30. You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.
What – Small business owners are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. The loan advance does not have to be repaid.
Eligibility – This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19.
Application – Applications will be accepted up to June 30. However, the program is on a first come, first serve basis.
What – The goal of the loan program is to help small businesses continue to pay their employees and their overhead costs in order to stay afloat for the next couple of months. So long as you use the borrowed funds to make payroll and to pay expenses, such as utilities and your rent or your mortgage interest, you won’t have to repay the loan and you will not owe income tax on the forgiven amount.
Eligibility – Generally, any small business with fewer than 500 employees is eligible. That includes sole proprietorships and independent contractors. It also includes non-profits, veterans’organizations and tribal businesses.
Application – Applications will be accepted up to June 30. However, the program is on a first come, first serve basis.
This is a difficult time for all small businesses. Make sure you apply for the right aid for your business. The professionals at Hoffman Brown Company continue to look out for you as a business as a community.
