Many of you have had a substantial decrease in your business activity due to the Coronavirus. The SBA (Small Business Administration) is now offering a host of programs that may be of help to you. The two that we think will provide the greatest benefit to most of our clients are outlined below:
Express Bridge Loan (EBL)
This is a short term loan, up to $25,000, that may be obtained from a bank who participates as a lender in the "SBA Approved Express Program." The payback period is up to 7 years. You must have an existing banking relationship with the lender. The application process and approval of these loans should not take much time. The first step is to call your bank and as if they have a valid "SBA Form 2424 Supplemental Loan Guaranty Agreement SBA Express Program" in effect. If they do, tell them you wish to apply. We can help you with the required application and supporting documentation.
Economic Injury Disaster Loan (EIDL)
This is a direct loan from the SBA. The loan can be up to $2,000,000 with a payback period of up to 30 years. The interest rate will be below 4%. We can help you prepare and submit the loan application. The application will take 1-2 hours, but the approval time could be up to 3 months.
The first step in any loan process is to call us to discuss your needs.
In addition to the loan programs above, Congress has just passed the "Coronavirus Aid, Relief and Economic Security Act," otherwise known as the CARES Act. This act, among other things, gives COVID-19 impacted employers a refundable payroll tax credit for continuing to pay their employees who are not working due to business disruptions. The Families First Coronavirus Response Act (FFCRA) has a very similar credit. There are lot of rules regarding these credits, and we are sure that there is going to be a mountain of new regulations once the IRS gets to write the rules. Before taking any action, please call us to discuss.