There are new loans created in the Bill just passed and signed last Friday, March 27, that can apply to most any small business right now.
Payroll Protection Loan: If you want to secure a government loan that has the potential for a sizable portion of the loan to be forgiven and have employees, then this loan is for you. It is designed for Employers with fewer than 500 employees. The loan is based on the Average Monthly Payroll Costs times 2.5 up to $10,000,00 maximum amount of loan. You apply for this load with an SBA approved lender, which includes most banks.
Emergency Government Disaster Loan and Grant: These are SBS Disaster Loans expanded to include sole proprietors and ESOPs. For any loan made under this program before December 31, 2020 there is no personal guarantee required. There is also an Emergency Grant for any business that has applied for a Disaster Loan up to $10,000.
SBA Disaster Loans: Many businesses have already applied for these loans. They are available for businesses who have been shut down or have lost a significant portion of their revenue due to the Coronavirus. The loan is up to $2,000,000, has a 3.75% interest rate, and a more involved application process. There is no forgiveness provision and businesses who already have lines of credit or access to loans are not qualified.
If you have any questions regarding any of these loans, please contact our office. We are happy to assist you.
Click here to download the Coronavirus Emergency Loans Small Business Guide and Checklist.