If you’re like us, it feels great to be back to work. But even as more money begins flowing in, know financial options are available if your budget still feels tight.
Paycheck Protection Program
The most widely known option available, the Paycheck Protection Program was designed to keep workers on payroll. If employees are kept on payroll for eight weeks, SBA will forgive loans when the money is used for payroll, rent, mortgage interest, or utilities. Consult with your lender if they are participants of this program. Note, the PPP is tax exempt.
For more information, visit here.
EIDL Loan Advance
This loan advance provides up to $10,000 to small businesses in need of temporary relief, and is the newest form of economic relief passed by Congress. Enacted on June 15, note the loan does not have to be repaid. Businesses who have already received money from the PPP are eligible.
For more information, visit here.
SBA Express Bridge Loans
Small businesses are eligible for SBA Express Bridge Loans if they already have a relationship with an SBA Express Lender. This loan is good for up to $25,000 and can be accessed quickly. Use this loan to bridge the gap while waiting for funds from the EIDL loan.
For more information, visit here.
SBA Debt Relief
For businesses who didn’t received funding from the above options, the SBA will automatically provide SBA Debt Relief. This includes six months of paying the principal, interest, and fees for current and new borrowers (through September 27, 2020). For more information, visit here.
Also note, the CARES Act includes funding for the SBA to forgive six months of payments for current and new loans provided through the SBA. For more information, visit here.
Other options
There is a long list of corporations also looking to support small businesses. Start with Forbes for a more organized version, then check out the University of Chicago for a more inclusive list.
Information for this blog came from the Small Business Administration. Local relief may be available; we suggest beginning your research with a Google search.
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