About This Episode
Things are rapidly changing due to the current pandemic, and so are the loan and grant options available to small businesses. There are two new loan options: the Paycheck Protection Program and the Economic Injury Loan, as well as the option to apply for grants to help financially sustain your business during these unprecedented times.
Learn about SBA Loan options and grants to help keep your business moving forward!
What we’re talking about:
- The SBA Loan – Paycheck Protection Program
- The SBA Loan – Economy Injury
- Small Business Grant Opportunities
The SBA Loan – Paycheck Protection Program
The Paycheck Protection Program has received the most media attention since the CARES act was signed because it offers loan forgiveness. To be eligible for this loan, your business must:
- Have been in operation on or before February 15, 2020
- Have less than 500 employees
- Show it’s been economically impacted by COVID-19
Your business can qualify for up to $10 million, but the loan amount will be based on the previous 12 month period. The most exciting part of this program is that for an 8 week period, any portion of the loan spent on payroll, mortgage interest, rent payments, or utility payments can be forgiven.
The SBA Loan – Economy Injury
The Economic Injury Loan is based on economic damage that may have recently occurred due to a disaster (like the coronavirus pandemic). To be eligible:
- Your business must meet the SBA’s definition of a small business
- You must reside in a declared disaster area, which is currently, all 50 states
You can borrow up to $2 million, based on how much economic injury you’ve sustained. There’s also an emergency cash advance of $10,000 available to cover essential expenses that doesn’t need to be repaid. The application is on the SBA website and is pretty straightforward.
Small Business Grant Opportunities
Grants are another opportunity for funding. They are a great option if your business requires a small amount of money because grants don’t need to be repaid. It’s best to look for grants specific to your niche industry, that align with your personal identifiers, and that are for local businesses. You should apply as soon as possible, for as many as you can, and most importantly, be ethical and consider your needs and the needs of others.
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