The CARES Act provides assistance to Small Businesses through the PAYCHECK PROTECTION PROGRAM and the ECONOMIC INJURY DISASTER LOANS. Please see information about each below.
The Paycheck Protection Program (PPP) provides small businesses with the resources they need to maintain their payroll, hire back employees who may have been laid off, and cover applicable overhead.
Also, small business owners in all U.S. states, Washington D.C., and territories are eligible 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 following a successful application. This loan advance will not have to be repaid.
Please review the details for both opportunities below.
SMALL BUSINESS PAYCHECK PROTECTION PROGRAM
The PPP administers funds to small businesses for up to 8 weeks for payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
The PPP prioritizes small businesses and provides up to $349 billion toward job retention and certain other expenses.
Eligible Parties: Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
- Small Business Administration https://www.sba.gov/paycheckprotection/find
- PPP Application https://home.treasury.gov/system/files/136/PPP-Borrower-Application-Form-Fillable.pdf
- PPP Rules https://home.treasury.gov/system/files/136/Affiliation%20rules%20overview%20%28for%20public%29.pdf
- How to Calculate Loan Amounts https://home.treasury.gov/system/files/136/How-to-Calculate-Loan-Amounts.pdf
List of Documents to have prepared in anticipation of PPP Loan list_of_documents_to_have_prepared_in_anticipation_of_ppp_loan.docx
ECONOMIC INJURY DISASTER LOANS
Small business owners in all U.S. states, Washington D.C., and territories are also eligible 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 following a successful application. This loan advance will not have to be repaid.
The SBA’s Economic Injury Disaster Loan helps to temporarily assist in the loss of revenue due to the COVID-19 pandemic.
This program is for any small business with fewer 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.
**Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid. Faith-Based Organizations are eligible to apply.
Please click here for more information on Faith-based organizations: https://www.sba.gov/sites/default/files/2020-04/SBA%20Faith-Based%20FAQ%20Final.pdf
Apply for the Economic Injury Disaster Loan and Loan Advance by clicking the link below:
SBA Debt Relief
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. Please click the link for more information: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief
SBA Bridge Express Loan
The SBA Express Loan program is a pilot program that allows lenders the authority to deliver expedited SBA-guaranteed financing on an emergency basis for disaster-related purposes to eligible small businesses, while the small businesses apply for and await long-term financing.
Please click the link for more information: https://www.sba.gov/document/support--express-bridge-loan-pilot-program-guide
MBE Capital Partners
MBE Capital Partners, LLC (MBECP) focuses specifically on small and diverse businesses. With an international reach, MBECP offers alternative financing through Supply Chain, Purchase Order and Inventory Financing. They are the only Direct Lending Certified Minority Finance Company and the largest independent finance provider for small and diverse businesses in the U.S., Caribbean and Mexico.
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