State and Federal governments are trying to support business owners in unprecedented times. The intent of this post if to provide business owners with the resources and tools they need to be informed and to apply for aid. As we are located in California, we are keeping this focused on CA and Federal aid.

It’s a fast moving area - we will try to keep current - but if you know of new resources, please do share in the comments section:

Getting money from the government is never going to be easy! But with PPP’s, EIDLs, loans and forgiveness, sometimes understanding the different options is confusing enough. Here’s a breakdown:

1. PPP or Paycheck Protection Program

This loan program provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program. The SBA resumed accepting Paycheck Protection Program applications from participating lenders on Monday, April 27, 2020. If you qualify and you have not already applied, please do so. You need to speak to your bank, credit card provider, payroll provider (also Quickbooks) or find an approved SBA lender to apply through. Full details here.

2. EIDL Loan Advance

This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. Watch this space for updates or find more details here.

3. SBA Express Bridge Loans

Enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. If you have that relationship - speak to them!

4. SBA Debt Relief

The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic. As part of our coronavirus debt relief efforts, the SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020. More details here.

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There are essentially two ‘loans’ to consider applying for:

1 - Economic Injury Disaster Loan Emergency Advance (EIDL)

This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. DETAILS HERE.

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19. APPLY HERE. [NOTE: When it opens up again.]

2 - Paycheck Protection Program (PPP)

An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.

More details here.

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And if you’re in need of some specific insight tailored for your business, then contact me. A lot of our members are doing extremely well in this environment - so to know where the opportunities are, set up a call with me today.