Last week, Congress approved a massive stimulus bill that included grants for small businesses and sole proprietorship. Take advantage of this money during this down time. It's there for you to use.
The Paycheck Protection Program and the Economic Injury Disaster Loan Program are the two main options small businesses and nonprofits have to obtain financial support during the coronavirus outbreak. (It’s worth noting that organizations can receive both loans and that an EIDL loan can also be refinanced into a PPP loan.)
I recommend applying for the “up to $10,000” grant first. It's called the Economic Injury Disaster Loan Program (EIDL), which includes a $10,000 grant that businesses can apply for and which they do not need to pay back.
The rest of the EIDL loan, which caps out at $2 million, is not forgivable but can be more flexible than PPP in the types of expenses it covers.
Quick Link: Currently, the EIDL application is already live and accessible here.
I have a ton of family members who run their small businesses. They need small business help right away. If you are a 1 person hair-cutting crew, maybe you have your air conditioning company or an independent contractor. If you are self-employed, you are eligible for a payroll protection loan.
The Paycheck Protection Program (PPP): The majority of the small business stimulus funds in the CARES Act is intended to guarantee businesses the loans they need to cover eight weeks of payroll, along with some utility and rent costs.
Here is what you need to know about Coronavirus Emergency Loans
The Coronavirus Aid, Relief and Economic Security Act allocated $350 billion to help workers stay afloat during the coronavirus. This is known as the Paycheck Protection Program and provides 100% federally guaranteed loans to small businesses who maintain their payroll during the emergency.
🙋♂️🙋♀️ THESE LOANS MAY BE FORGIVEN IF YOU MAINTAIN YOUR PAYROLL DURING THE CRISIS OR RESTORE EMPLOYEE PAYROLLS AFTERWARD.
Are you eligible for SBA Loan During COVID-19? ❓
Are you a small business with less than 500 employees? Maybe you operate as a sole proprietorship? Maybe you are an independent contractor? (see the US Chamber of Commerce additional businesses that qualify).
If you answered YES – then let's move to the next step:
What will lenders be looking for your small business help?
Lenders are making sure you were in business before Febuary & you will use the loan for payroll, mortgage, lease, rent and utility.
Businesses and nonprofits eligible for the PPP program are required to have been in business on February 15, 2020, and to demonstrate that the economic fallout from the coronavirus has hurt them.
- Any business with 500 or fewer employees
- Any 501(c)3 nonprofit that has 500 or fewer employees, or otherwise meets the SBA’s size requirements
- Restaurants, hotels, or other businesses categorized under “Accommodation or Food Services” that have 500 or fewer employees at each independent location
- Tribal businesses and 501(c)9 veterans organizations
- Independently owned franchises
- Self-employed workers, independent contractors, gig workers, and sole proprietors
Businesses and nonprofits eligible for the EIDL program are required to have been operational on January 31, 2020, and to have experienced negative economic effects because of the coronavirus crisis.
- Any business with 500 or fewer employees
- Any private nonprofit that has 500 or fewer employees — or otherwise meets the SBA’s size requirements
- Sole proprietorships and independent contractors
- Tribal businesses, cooperatives, and employee-owned businesses
If you answered YES – then… ✔
How much can you borrow?
Loans can be up to 2.5x the borrower's average monthly payroll cost, not to exceed $10,000,000.
If you answered YES – then…✔
Will this loan be forgiven?
The amount you spend on payroll, mortgage, lease, rent, utilities will be forgiven.
Call your local bank ahead to schedule an appointment or an over the phone consultation to see if they have any online or over the phone appointments. Click the link below to fill out your application from home.
Quick Link: The PPP application is live as of April 3, and earlier this week the Treasury Department released an example of what it would look like.
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- #stimulus #sba #checks #loans #forgiveness
When can I apply for the EIDL Stimulus or the Paycheck Protection?
The EIDL application is already up and running, while the PPP application was just opened April 3, for small business help and nonprofits. Another PPP application will go live on Friday, April 10, for independent contractors and self-employed individuals.
Related Post: What about stimulus checks?
Laid Off? Check Out Our Work from Home Series…
The unemployment numbers came out yesterday and they are TRIPLE what we expected. It's now worse than I originally thought. We're up to 15 million people unemployed. Eventually, I believe that over 30 million people will be unemployed. That's why we're kicking off our work from home, start a side hustle series to help you, your family and your community.