By now, anyone who is reading this blog understands that the world is dealing with a situation unparalleled in recent history – a worldwide pandemic driven by a Coronavirus strain known as COVID 19. In these uncertain times, unsubstantiated fear and panic sometimes lead people to make rash or irrational decisions out of fear, which only serves to exacerbate this severe problem.
To be clear, the COVID 19 pandemic is severe and many people may be exposed to the virus. Hence, being acutely aware of the risks involved and following the recommendations of health officials (i.e., washing your hands, staying home if you do not feel well, and maintaining a safe distance from others) is critical to get us past this crisis.
And we WILL get past it in due time by practicing continued strong vigilance to contain the spread of the virus which will permit those who most need medical care the opportunity to get it.
Which Small Business Relief Option is Right for Your Business?
Many small businesses are eligible for relief through the CARES Act, which offers nearly $350 billion in assistance. Here are four options outlined on the SBA website. If you need advice, we’re here.
- Paycheck Protection Program
If your business keeps its employees for eight weeks, and the money is used for payroll, rent, utilities, etc., the SBA will forgive your loan.
- EIDL Loan Advance
This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.
- SBA Express Bridge Loans
Enables small businesses that currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
- SBA debt relief
The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic.
As part of SBA’s debt relief efforts:
• The SBA will automatically pay the principal, interest, and fees of current 7(a) loans for six months.
• The SBA will also automatically pay the principal, interest, and fees of new 7(a) loans issued before September 27, 2020.
Additional debt relief is also available
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.
*data was taken from www.sba.gov;
Want more info? We’re here to help provide direction and advice. Call one of our four locations today!