Our team has put together a one-stop stop for information that small businesses can use during these difficult times. If you have any questions, feel free to reach out to our team and we try to get you the necessary answers.
Which resource is right for your small business?
The CARES Act includes $350B in emergency loans for small businesses. There are a number of programs that were created as part of the broader act that small business owners can take advantage of. These funds Are first-come, first-served and the U.S Treasury expects the money to go quickly, so businesses that want to apply need to act fast. Find out which program is right for your small business by clicking here.
Paycheck Protection Program
Last week’s CARES Act offers nearly $350 billion for a small business loan program called the Paycheck Protection Program. This program is separate from other loan programs, including the SBA’s disaster relief programs. It’s designed to get cash into the hands of suffering small businesses quickly while also incentivizing small business owners to keep employees on payroll by offering loan forgiveness. The program is available for small businesses and sole proprietors on April 3, and to independent contractors and self-employed on April 10.
Economic Injury Disaster Loans
This loan offers up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%. Loans smaller than $200,000 can be approved w/out a personal guarantee.
Emergency Economic Injury Grants
Additionally, the CARES Act established a loan advance under the EIDL. This allows eligible small business owners to apply for an Economic Injury Disaster Loan advance of up to $10,000.
This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application. This loan advance will not have to be repaid.
Employee Retention Credit
The ERC provides your small business a refundable payroll tax credit for 50% of wages paid by eligible employers to certain employees during the COVID-19 crisis & allows taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020.
To find more information on all of these programs, you can visit the Small Business Administration’s website. Click here to visit their site.
If you have any questions or need more information, you can reach our local SBA district office here:
SBA D/FW District Office
4300 Amon Carter Blvd Suite 114
Fort Worth, Texas 76155