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Covid-19 Relief for Small Businesses

Updated: Jul 10, 2020

What happens to an economy that thrives on human interaction when everyone has to stay home? When our innate need for social togetherness is replaced by mandatory social distancing? We are at war with an invisible enemy that is killing our people and crippling our economy. But this is not the time to admit defeat. This is not the time to give up. Despite the tragedy we MUST remember to think about the future. This is not the end and we will get through this.

I do my best to keep these posts professional and not make them personal. However, before I begin, I'd like to take a moment to acknowledge the medical professionals that have been risking their lives day after day, the companies that have been working tirelessly round the clock to provide relief and support to not just the American people but people all over the world and our US Military forces out there fighting to keep us safe. From all of us to all of you we say...

In an effort to secure our financial future a stimulus package has been introduced to help the millions of working Americans that have lost their jobs as well as the companies that employ them. As a local business, we understand the financial concerns that so many are facing at no fault of our own. But before you close shop completely please finish reading this post.

The Small Business Administration has a number of programs and resources available that provide economic assistance to all, yes all, eligible small businesses that have been affected the current health crisis.

Included in these resources:

  • Eligible recipients may receive up to $10 million based on the average payroll of the two months prior plus an additional 25%

  • Payments are deferred for six months

  • This loan is forgivable if at least 75% of it's proceeds went to employee payroll

  • There is no collateral needed and there are no lender fees

  • 0.5% interest rate

  • Available through June 30th, 2020

Who is eligible?

  • Businesses with less than 500 employees

  • Veterans organizations

  • Tribal Businesses described in the Small Business Act

  • Certain non-profits

  • Self-employed

  • Independent contractors

Economic Injury Disaster Loans Program:

  • working capital loan of up to $2 million for temporary loss of revenue

  • Loan advance of up to $10,000 available within three days of successful application

  • Loan advance does NOT have to be repaid

  • Low interest 3.75%

  • Some may qualify for even lower interest rate

Other Loans and Programs:

  • 7(a) Program- all inclusive loans up to $5 million

  • Express Loan Program- 7 year loan of up to $350,000 with a 36 hour turnaround for approval or denial

  • Community Advantage Loan Pilot Program- Up to $250,000 to assist small business in underserved markets

  • 504 Loan Program- Designed to foster economic development, job retention and job creation

  • Microloan Program- smaller loans of up to $50,000 from nonprofit lenders

Lenders are ready to start processing applications as soon as April 3rd, 2020!!

Below is list of links from the SBA's website regarding the full details of the loan programs available as well the links to apply. The only way we can get through this alone is if we do it together.

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