SMALL BUSINESS ADMINISTRATION (SBA)
Economic Injury Disaster Loans (EIDL)
The SBA has increased funding for its Economic Injury Disaster Loans (EIDL). These loans can be used for:
Paid sick leave to employees impacted by COVID-19
Debt Obligations Due To Lost Revenues
Increased costs due to supply chain disruptions and materials
Apply directly on SBA site.
Payroll Protection Program
Businesses with 500 employees or less, including sole proprietors and independent contractors, are eligible for SBA 7(a) loans in response to COVID-19 covering expenses for the period of February 15, 2020 through June 30, 2020.
The loan amount will be 250% of the average salary expenditures/month for 2019, up to $10 million. For businesses not open yet in that period, the SBA will look at earlier receipts from 2020.
7(a) loans can be used for: Payroll, including payment independent contractors and employees who work on commission, Rent/Mortgage Interest, Utilities.
All or a portion of these loans will be forgivable for businesses that maintain the same average payroll levels as in the previous year; forgivable amounts phase out as employers lower that.
Update on SBA PPP as of 4/15/2020:
Due to Extremely High Demand we are temporarily pausing taking in new SBA PPP Loan Applications. Effective April 15, 2020 All applications received prior to this date are being worked on and in process.
Most SBA Lenders are at capacity or their systems are overwhelmed due to the overnight surge in applications
We do not feel confident in taking in new PPP Loan applications and that more than likely not receive funding at this point.
There has been talks of a 2nd round of funding for $250 Billion by the Federal Government for this program (PPP Loan). We are waiting to see if that happens.