The United States Small Business Administration is currently providing resources for small businesses that have been negatively impacted by the current Coronavirus epidemic. These resources include loans that can help small businesses stay afloat during this uncertain time.
What happens when the pandemic is over? It is essential to understand what the help you receive now means for your business later on.
The Purpose of Small Business Administration Resources
The compilation of resources put together for small businesses is in an effort to keep those non-essential businesses afloat. At the same time, employees can stay home to assist in preventing the spread of the Coronavirus.
Paycheck Protection Program
The Small Business Administration has allotted $349 billion toward job retention and other allowable expenses through the Paycheck Protection Program.
The program is designed to allow small businesses to keep their employees on the payroll by allowing loans up to $10 million to pay for salary, rent or mortgage, and utilities. If all of the employees are kept on the payroll of the business for eight weeks, the Small Business Administration will forgive part up to all of the loan.
Small businesses, eligible non-profits, Veteran organizations, sole proprietorships, self-employed, Tribal concerns, and independent contractors are welcome to apply.
Economic Injury Disaster Loans and Advances
Small businesses in the United States (including D.C. and territories) are eligible to apply for an Economic Injury Disaster Loan advance. The amount is capped at $10,000. The loan advance will be made available to qualified small businesses within three days of successful application. This advance will not have to be repaid.
Small Business Administration Express Bridge Loans
A pilot program that has been launched to allow Small Business Administration Express Lenders the authority to expedite the availability of SBA-guaranteed financing. This funding is on an emergency basis for small businesses that are suffering from disaster-related economic hardships. This is to aid small businesses who have applied for long-term funding but are awaiting approval.
These bridge loans offer funding up to $25,000. This will be repaid in full or in part by proceeds from the Economic Injury Disaster Loan.
Extra Resources and Guidelines for Small Business
The Center for Disease Control and Prevention (CDC) has the most up-to-date information available on the Coronavirus. They offer various guides for different sectors within the community.
The CDC has compiled a guide to help prevent the spread of COVID-19 and to reduce the worry of discrimination in the workplace. CDC’s Guidance for Businesses and Employers provides all the information a small business owner needs to protect their business and community.
An extra resource available comes from the President. The President has outlined a 15-day plan to slow the spread of the virus.
Use Resources Wisely
The recommendation is that if your business does not need the assistance, don’t use it. You have to make sure that you are reading all of the terms of the help you are applying for. Some require repayment within a certain number of months.
Be wise in your business endeavors, and make sure you are keeping your employees and the community safe.