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Kind of a random dump of resources. The short version is that there are a lot of programs for small businesses.
The big one are 7(a) which provides loans, of which something like 10k may be forgiven IF it's used primarily for "payroll" (note that they are counting 1099 and other sole proprietor income as payroll for this!) - the exact % will vary depending on how the program evolves but current guess is that to be forgiven at least 75% payroll and the rest for direct business expenses.
The other point is 7(b) which has very generous business continuance loans. "Economic Injury Disaster Loan: Due to the potential limitations on loan forgiveness for proceeds used for operating expenses other than payroll under the PPP program, it may be beneficial for many businesses to also apply for a disaster loan under Section 7(b) to use for other operating expenses, such as rent, mortgage, interest, etc. These loans will be subject to a longer term of up to 30 years, accrue interest at a rate of 3.75% per annum and will not be eligible for loan forgiveness. Any disaster loan over $200,000 will need to be personally guarantied by a 20% owner of the business. These loans are more flexible in terms of the loan amount, subject to a $2,000,000 cap. Finally, these loans are currently being originated directly by the SBA. You can access the loan application for a disaster loan here https://covid19relief.sba.gov/#/. "
Taking on more debt is, of course a risk, and perhaps a bigger risk than usual right now. But if this is the difference between business survival and not OR you have other higher interest loans you're staring down the barrel of.. this might well be a thing to seriously consider.
Some more resources:
https://covid19relief.sba.gov/#
https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf
There are a variety of programs in the bill to support small businesses (under 500 employees), but by far the most generous one is the 7(a) Paycheck Protection Program. The PPP can cover 2 months of your payroll and a little more.
Details here:
https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses
and
This is a good summary:
https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf
Plus a rather nice lawyers explanation
The $350 billion for these programs is not enough to go around, so you must act quickly.
https://apply.usbank.com/applications/business/InquiryForm
If you're eligible you might want to apply for the EIDL ASAP, because there's a free $10K available that's forgivable potentially available as a grant.
The application is up, at the top of the page at sba.gov. Only $10 billion is allocated for this, whereas $350 billion for the PPP. So the EIDL money is going to run out FAST. Apply today.
The $10K grant from the EIDL cannot count for the same uses as the PPP. So at worst, it's a wash. But you can get the $10K in your bank account relatively quickly, while the PPP process may take weeks.
PPP is still the bigger forgivable sum, with up to $10M forgivable vs. $10K with the EIDL. (And note that EIDL amounts over $10K are not forgivable).
TLDR: Apply for the $10K EIDL grant ASAP today, and get in line for the PPP as soon as you can
The big one are 7(a) which provides loans, of which something like 10k may be forgiven IF it's used primarily for "payroll" (note that they are counting 1099 and other sole proprietor income as payroll for this!) - the exact % will vary depending on how the program evolves but current guess is that to be forgiven at least 75% payroll and the rest for direct business expenses.
The other point is 7(b) which has very generous business continuance loans. "Economic Injury Disaster Loan: Due to the potential limitations on loan forgiveness for proceeds used for operating expenses other than payroll under the PPP program, it may be beneficial for many businesses to also apply for a disaster loan under Section 7(b) to use for other operating expenses, such as rent, mortgage, interest, etc. These loans will be subject to a longer term of up to 30 years, accrue interest at a rate of 3.75% per annum and will not be eligible for loan forgiveness. Any disaster loan over $200,000 will need to be personally guarantied by a 20% owner of the business. These loans are more flexible in terms of the loan amount, subject to a $2,000,000 cap. Finally, these loans are currently being originated directly by the SBA. You can access the loan application for a disaster loan here https://covid19relief.sba.gov/#/. "
Taking on more debt is, of course a risk, and perhaps a bigger risk than usual right now. But if this is the difference between business survival and not OR you have other higher interest loans you're staring down the barrel of.. this might well be a thing to seriously consider.
Some more resources:
https://covid19relief.sba.gov/#
https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf
There are a variety of programs in the bill to support small businesses (under 500 employees), but by far the most generous one is the 7(a) Paycheck Protection Program. The PPP can cover 2 months of your payroll and a little more.
Details here:
https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses
and
Paycheck Protection Program
An SBA-backed loan that helps businesses keep their workforce employed during the COVID-19 crisis.
www.sba.gov
https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf
Plus a rather nice lawyers explanation
The $350 billion for these programs is not enough to go around, so you must act quickly.
https://apply.usbank.com/applications/business/InquiryForm
If you're eligible you might want to apply for the EIDL ASAP, because there's a free $10K available that's forgivable potentially available as a grant.
The application is up, at the top of the page at sba.gov. Only $10 billion is allocated for this, whereas $350 billion for the PPP. So the EIDL money is going to run out FAST. Apply today.
The $10K grant from the EIDL cannot count for the same uses as the PPP. So at worst, it's a wash. But you can get the $10K in your bank account relatively quickly, while the PPP process may take weeks.
PPP is still the bigger forgivable sum, with up to $10M forgivable vs. $10K with the EIDL. (And note that EIDL amounts over $10K are not forgivable).
TLDR: Apply for the $10K EIDL grant ASAP today, and get in line for the PPP as soon as you can
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