As a result of the Coronavirus pandemic, small businesses across the country have had to shut their doors as shelter-in-place orders, self-quarantines and social distancing measures have interrupted daily life in an effort to cure the spread.
In an effort to alleviate the financial burden of the Coronavirus on small businesses, the U.S Small Business Administration (SBA) has released a set of relief options. The Economic Injury Disaster Loan Emergency Advance (EIDLE), in particular, is an advanced loan offered to small businesses seeking economic assistance.
There are a few things to consider when opting for the EIDLE:
- Loan Amounts:
- The loan advance is for up to $10,000, depending on the business and the specific terms of the application.
- Eligibility:
- Small businesses with less than 500 employees are eligible for the loan, including sole proprietorships, independent contractors and self employed persons, private non-profit organizations or 501(c)(19) veterans organizations affected by COVID-19.
- Businesses with more than 500 employees may be eligible if they fit the small business standard for that specific industry. You can check whether your business qualifies as small using the SBA’s size standards tool.
Additionally, the SBA is also offering other forms of economic relief for small businesses:
- Debt Relief Program
- The Debt Relief Program provides relief to small businesses by paying the principal, interest, and fees of current and new 7(a), 504 and microloans for a period of six months, so long as they are issued prior to September 27, 2020.
- SBA Express Bridge Loans
- Small businesses that currently have a business relationship with an SBA Express Lender can access up to $25,000 quickly with the SBA Express Bridge Loans.
- Paycheck Protection Program
- The PPP provides loan protection programs that can help small business owners keep their workers on the payroll. The SBA will forgive the loans if all employees are kept on payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Launched as part of the CARES Act, these programs will be active for the duration of the coronavirus pandemic in the United States unless a deadline is otherwise stated. If your business is eligible for any of these programs or initiatives, apply as soon as possible directly on the U.S Small Business Administration website.
If you need help applying for an SBA loan, our tax experts are available 24/7 to guide you through the process! Try Taxfyle today for all of your tax-related needs.
