SBA loan information
The folks in Washington D.C. are still working on the details for some of the federal Covid-19 economic disaster response. But that should NOT keep you from moving forward to blunt the economic impact of this virus. We have pulled together this information to help you.
DO IT NOW
Go to https//covid19relief.sba.gov and complete the short form to get in line for a loan that will be largely (and, perhaps, totally) forgivable if you use it to pay your employees, rent, utilities and other basic operating costs. You can apply for up to $2 million but this form, specifically, is to help move the process for a $10,000 advance.
Here is a guide to walk you through it. But I am telling you this guide is as long as the form itself so don't get caught up in it. To complete the form to get in line for the assistance, you will need your EIN, details about income and expenses from Feb. 1, 2019 to Jan. 31, 2020, your bank account and routing number. If you have all of that ready, the form will take you less than 15 minutes to complete.
These disaster loans (called EIDL for Economic Injury Disaster Loans) are available to all businesses including non-profits and cooperatives. Sole proprietors and some contract or gig workers are also eligible for these loans.
What about the Payheck Protection Program
This "loan," or portions of it can also be forgiven. It is to cover.
- Compensation (salary, wage, commission, or similar compensation, payment of cash tip or equivalent)
- Payment for vacation, parental, family, medical, or sick leave
- Allowance for dismissal or separation
- Payment required for the provisions of group health care benefits, including insurance premiums
- Payment of any retirement benefit
- Payment of State or local tax assessed on the compensation of employees
Eligibility for this program is more limited but still very broad. You can find details here. It is the Small Business Owners Guide to the CARES Act and includes information on both of these programs.
Here is a copy of the application form. These loans will be administered through an SBA Loan provider. Call your bank and see if they have one. I am working on finding a list of SBA specialists and will post it here as soon as I have it.