Before you decide which grant or loan to apply for, make sure you are prepared:
As of Thursday, April 16, the Small Business Administration (SBA) is currently unable to accept new applications for the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) based on available appropriations of funding. It’s important to note that through work with its partners, the SBA has processed more than 14 years’ worth of loans in less than 14 days. The Paycheck Protection Program is saving millions of jobs and helping America’s small businesses make it through this challenging time. The EIDL program is also providing much-needed relief to sustain businesses and their employees.
For now, the SBA is connecting local businesses to the following resources:
The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic. This covers all principal, interest and fees on current and new SBA 7(a) loans made through September 27, 2020, for up to six months.
As part of SBA’s debt relief efforts,
Additional Debt Relief:
For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.
What does an “automatic deferral” mean to borrowers?
Express Bridge Loan Pilot Program allows small businesses who currently have a business 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 a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. 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.
Congress recently passed the CARES Act, a more than $2 trillion funding package to combat the ongoing COVID-19 pandemic. The legislation provides financial support for health care providers, small businesses and nonprofits, families, workers, farmers, fishermen, and Tribes. Among other benefits, the legislation includes expanded unemployment insurance for workers, cash payments for individuals and families, and loans, grants, and debt relief for small businesses.