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Small Business COVID-19 Relief Options

21May,2020
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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.

 

Paycheck Protection Program

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.

 

EIDI Loan Advance

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.

 

SBA Loan

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.

COVID-19 Update:

The Coronavirus, officially COVID-19, has become a global health emergency. One of the measures Hoffman Brown Company is taking to keep our clients and Teammates safe is designing a completely virtual work environment. For the foreseeable future, our colleagues will be conducting business virtually to avoid any disruption in our ability to serve you. These measures are based on the CDC’s guidance and will evolve with the situation. Please know that we are fully functional, available and look forward to be of service.COVID-19 Resource Center