How Small Businesses Affected by the Coronavirus Can Get Assistance

How Small Businesses Affected by the Coronavirus Can Get Assistance

03/23/2020 Tags: Announcements, In the News, COVID-19

The following was prepared before the passage of the CARES Act had been passed. It may not reflect any subsequently issued guidance or further legislative activity. Please check with your Casey Peterson professional for the latest information.

There are a few steps those who own small businesses can take to help mitigate the impact of the coronavirus health crisis.

The U.S. Small Business Administration is in the process of offering disaster assistance for businesses that have been affected.

Recently, Economic Injury Disaster Loans became available for businesses in South Dakota and Wyoming. The SBA has a fact sheet to help small business owners understand the process of applying for a disaster loan and what documentation is required.

Also, SBA lenders throughout the country can defer principal, interest and servicing fees payments for up to six months. So, if you're a small business owner with a loan under the SBA 504 Loan (Certified Development Company) program and the SBA 7(a) Loan Guarantee program, make sure to contact your lender to ask for a deferment if you need it.

While small business owners wait to find out if they’re eligible for SBA loans, they may want to talk to their lending institution about options, especially if current cash flow is a concern. And keep in mind there will likely be more help from the government in the next month and beyond.

For instance, small and mid-sized employers got some help last week as part of the Families First Coronavirus Response Act. Those businesses can start taking advantage of two new, refundable payroll tax credits that will immediately reimburse them for every dollar they spend providing coronavirus-related leave for their employees. (Update: Small businesses will have to choose to apply for either a direct disaster loan or the upcoming stimulus package. They won’t be able to do both. Also, the stimulus package will have to go through local banks.)

With EIDLs, small businesses that qualify for the loans can use them for various costs, including fixed debts, payroll, accounts payable, and other bills. The interest rate is 3.75% for small businesses and 2.75% for nonprofits.

For additional information, contact the SBA disaster assistance customer service center at 800-659-2955 or disastercustomerservice@sba.gov.




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