COVID-19 Funding Programs. How can Small Businesses Apply?
On behalf of everyone at Eastern Engineering Group, we want to wish everyone a safe and healthy quarantine. COVID-19 has taken all of us by surprise, and we want our fellow Small Business owners to have the same information we got. Each title has its own source attached, so you are able to find more information. These are summaries we created for each loan, taking into consideration what we thought was the most relevant information. Check it out and leave us any comments or questions you may have !
What? The incentive to keep employees on payroll. They will forgive these loans if you keep all employees on payroll for 8 weeks, and you use this money for payroll, rent, mortgage interest, or utilities. At least 75% of the forgiven amount must have been used for payroll. However, there are some conditions that apply.
When? Available April 3, 2020, through June 30, 2020. Check out this link for Paycheck Protection Program to download a sample application !
Who? Any SBA 7(a) lender or any regulated lenders. THIS MEANS OUR BANKS BASICALLY. I have spoken to our bank and they are giving us updates on everything as it becomes available.
Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
This loan has a maturity of 2 years and an interest rate of .5%.
Economic Injury Loan and Loan Advance
What? It provides up to $2 million for businesses to overcome this crisis. Interest 3.75%. The interest rate will NOT change according to the SBA. Terms are up to 30 years. All of this needs to be discussed with the loan officer once you get one assigned. There is no obligation to take the loan if offered.
When? Available now, response for applications takes from 2 to 3 weeks.
Who? Directly through the SBA.
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
FundS will be available within three days of a successful application, and this loan advance will not have to be repaid. Any questions to be discussed with the loan officer!
SBA Debt Relief
What? SBA may be willing to pay the principal and interest of loans for a period of six months.
Who? SBA Loan Officer
SBA Express Bridge Loans
What? Express Bridge: $25,000 with less paperwork.
Catch? It is a short term loan, which means high-interest rates!
Who? SBA Loan Officer
What? The Florida small business bridge loan program. Up to $50,000, interest 0% for one year. 12% after the first year.
When? Available until 05/08/2020
Who? Florida Disaster Loan
Help From Your Bank
Ask them to defer your payments on a credit line. Or speak to your bank for other options they offer.
GoFundMe: GoFundMe, Yelp, and Intuit QuickBooks have each donated $500,000 to the Small Business Relief Fund. Make your contribution to help more small businesses receive grants. How to apply? Have at least $500 raised for your company or another profitable organization.
Facebook: Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries where we operate. We’ll share more details as they become available.
These are all the alternatives our business has considered during this time. We hope this gave you some new information, and we wish you all luck in this crazy situation. We hope everyone is able to find a healthy routine during these hard times, and send us any information you have found relevant during this quarantine!