Small Business Owners Can Count On Matching Loan Programs Coronavirus

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Small business owners hit hard by the coronavirus outbreak are relying on two federal loan programs to get through these dark days.

The United States Chamber of Commerce has published the following to help them navigate the programs:

1. What loans are available to help small businesses?

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The Small Business Administration (SBA) Economic Disaster Loan.

The paycheck protection loan (part of the CARES law).

2. How can I get these loans?

Apply for an Economic Disaster Loan directly from the SBA at https://bit.ly/34Fg2GE.

Paycheck Protection Loans are backed by the government, but will come from private banks.

3. How much can I borrow?

The SBA Economic Disaster Loan can reach $ 2 million in working capital for up to 30 years at 3.75% (2.75% non-profit). Not everyone will be entitled to this amount.

Paycheck Protection Loans can cover 2.5 months of average payroll or $ 10 million, whichever is less.

4. Do I have to repay these loans?

You must repay the economic disaster loan from the SBA. Payments can be deferred for one year after the origin of the loan.

All or part of the Paycheck Protection Loan can be canceled (converted to a grant). There are specific requirements regarding how you spend the loan and whether you continue to employ your workers for it to be canceled.

5. What about the $ 10,000 emergency grant I heard about?

The SBA offers businesses a grant of $ 10,000 that does not need to be repaid. This grant will be paid quickly, in just three days.

You can apply for this $ 10,000 grant as part of the Economic Disaster Lending process. If you receive the emergency grant of $ 10,000, you will not have to repay the grant only. You will still have to repay the remainder of your SBA economic disaster loan.

6. Can self-employed workers and freelancers apply?

Paycheck Protection Loans are available for 501 (c) (3), self-employed, sole proprietors and independent contractors.

SBA Economic Disaster Loans are available for small businesses and nonprofits (including faith-based organizations) with fewer than 500 employees, sole proprietors, and independent contractors.

7. Can you apply for both loans?

Yes. You can apply for and receive both loans.

8. Do I need good credit to qualify for these loans?

The paycheck protection loan does not require any collateral and no personal collateral.

Economic disaster loans are made based on credit scores. No income tax return is required. You can borrow up to $ 200,000 without personal collateral.

9. What if I have already laid off or laid off my employees? Am I still eligible for a Paycheck Protection Loan?

Your loan can be canceled if you pick up employees and restore wages usually within 30 days and hold them until June 30.

10. My bank doesn’t seem to know anything about the Paycheck Protection Loan. Now what?

Banks are currently working on the details but should be ready by April 3.

For more details on the programs, visit: https://www.sba.gov/ and https://bit.ly/2wxVF1g.

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