Many businesses are going through some very tough times right now. As difficult as it may be, owners have to be strong, optimistic and provide leadership in these challenging times. They also need to seek good advice and make smart decisions to keep their businesses surviving until things improve, including taking advantage of the new government sponsored loan programs.
More information from the SBA can be found here:
The Cares Act expanded the SBA’s long-standing Economic Injury Disaster Loan Program (EIDL), which includes $10,000 grants for eligible participants. The EIDL program was created to assist businesses, renters, and homeowners located in regions affected by declared disasters.
This guide outlines the steps small businesses need to take to access much-needed Payroll Protection Program Funds. Please contact your bank or any other banks in your area that will be participating in the program. Submit your signed application to a participating bank. Starting April 3, small businesses and sole proprietorships can apply for loans. Starting April 10, independent contractors and self-employed individuals can apply for loans. There is $349 billion available to small businesses on a first-come, first-serve basis. Treasury recommends applying as soon as possible.
The CARES Act created a new employee tax credit for employers who are closed, partially closed, or experiencing significant revenue losses as a result of the coronavirus. Employers who receive a Paycheck Program loan are not eligible for this tax credit.
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