I hope everyone is doing ok and staying healthy & safe.
Read bellow if interested, for some important information regarding the assistance every small business can receive due to Covid-19.
There are at least 3 types of funds/loans available for all small businesses, affected by Covid-19.
The first and the one everyone should apply for is the “COVID-19 ECONOMIC INJURY DISASTER LOAN APPLICATION”. This link will take you to the SBA website so can fill out and submit your application.
This application is for the SBA Loan/Grant, up-to $10,000 , which you don’t have to pay back!
So go ahead, read and apply to find out if you qualify!
Click the following link to the SBA website , if you’d like to know more details about the program:
Payroll Protection Program: (LINK TO SBA WEBSITE)
This is a loan that you will have to apply with a bank. The bank you’re doing business with will be most likely the way to go. This loan can give you funds equal up-to 2½ of your average monthly payroll.
This comes with an APR of 1% as stated on the SBA Website and up to 4% as stated on different other sites. You will have the option to request a “forgiveness” for all or some portions of your loan, depending on the usage of the funds and as long as the criteria are met.
However, each bank will require specific requirements for eligibility. While Bank of America, has posted the following, other banks might have different requirements. Check with your bank to find out the details.
" Application information
To apply for the Paycheck Protection Program through our bank, you must have a Small Business lending and Small Business checking relationship with Bank of America as of February 15, 2020 or a Small Business checking account open no later than February 15, 2020 and not have a business credit or borrowing relationship with another bank. A Business Credit Card, line of credit or loan may be the lending product used.
At Bank of America, the federal Paycheck Protection Program will be administered online only.
*Clients must have a Business Online Banking account. If you do not currently have an online account, you must enroll in Business Online Banking as soon as possible. *
After completing the application process, you will receive online confirmation of the submission.
Bank of America will process your application as soon as possible.
*We will contact you with next steps and to collect any required documents. Do not proactively deliver or send documents to our Financial Centers or banking teams. *
Information about your application status will NOT be available through our Financial Centers or Contact Centers – due to the nature of this loan process and the steps involved.
You will be notified of the status of your loan application through email communications.
Economic Injury Disaster Loan Assistance:
There is a 3rd option that offers funds in form of a loan, with 4% APR, 6-12 months deferred payments, and up to 10 years repayment. While this was an option to apply for, listed on March 27th, now it has been incorporated to the Advance Loan Application.
You could reach out to SBA Directly for more info on this specific loan at the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail email@example.com
Whatever you choose to do or not to do, I would advise to go through the SBA first and do your homework before reaching out to any lenders.
I hope this helps and I wish the best to all of you!