The Payroll Protection Program (PPP), a key component of the Federal CARES Act, will end on June 30. Please let all of your struggling small businesses know that they can apply for forgivable PPP loans, through the Small Business Administration (SBA). But time is running out. Information and applications can be accessed at SBA’s PPP web page. This loan program provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program. A PPP loan can help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
Economic Injury Disaster Loans are another option for businesses that have been adversely impacted by the COVID-19 public health emergency. These traditional SBA loans feature low-interest rates and up to a 30-year term for repayment; and they can be used for a variety of purposes. Another option available to small businesses and agricultural businesses is SBA’s Economic Injury Disaster Loan Advance. This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. Awards will be made on a first come, first served basis until authorized funding is exhausted.
SBA began accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on June 15 to qualified small businesses and U.S. agricultural businesses. The new eligibility for U.S. agricultural businesses is made possible as a result of the latest round of funds appropriated by Congress in response to the COVID-19 pandemic.
SBA also offers Express Bridge Loans, for borrowers who have an existing relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be term loans or used to bridge the gap while applying for a direct EIDL. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan of up to $25,000, which would be repaid in full or in part by proceeds from the EIDL loan.
