If you own/run a business and are experiencing financial hardship due to the COVID-19 pandemic, you may be interested in resources provided by the U.S. Small Business Administration (SBA) and as part of the newly passed Federal Coronavirus Relief Act (CARES). Visit https://www.sba.gov/funding-programs/loans/coronavirus-relief-options for more details. Some options include:
- Paycheck Protection Programs: This loan is designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
- COVID-19 Economic Injury Disaster Loan (EIDL): This loan provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue. The loan is intended for working capital and normal operating expenses such as the continuation of health care benefits, rent, utilities, or fixed debt payments.
- SBA Express Bridge Loans: This loan allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000. 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.
- SBA Debt Relief: The SBA will automatically pay the principal, interest, and fees of current qualifying SBA loans for a period of six months. Also, the SBA will automatically pay the principal, interest, and fees of new, qualifying SBA loans issued prior to September 27, 2020.
Businesses can also contact local, state, and federal Chambers of Commerce for more information regarding these programs and other relief opportunities that may be available.
The information provided herein is for informational purposes only, and should not be construed as professional advice on any subject matter. You should not act, or refrain from acting, on the basis of any content included herein without seeking legal or other professional advice. The contents provided herein contain general, summary information and may not reflect current developments or address your particular situation. We disclaim all liability for all actions you take, or fail to take, based upon any information provided herein.
Page last updated January 28, 2021.