Small Business Loans and Grants for Pandemic Relief

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 operation since before February 15, 2020, have less than 500 employees, and show it’s been economically impacted by the pandemic. Your business can qualify for up to $10 million, but the loan amount will be based on the previous 12 month period. The great part about this loan is that for an 8 week period, a 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. To be eligible, your business needs to meet the SBA’s definition of a small business and 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 is also an emergency cash advance of $10k available to cover essential expenses that does not need to be repaid. The application is on the SBA website and straightforward.

 

Small Business Grant Opportunities

 

Grants are another opportunity for funding during this difficult time. They are a great option if your business requires a small amount of money because they do not need to be repaid. It’s best to look for grants specific to your niche industry, that align with your personal identifiers, and 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.

  

LINKS MENTIONED

Workshop: Creating a Financial Emergency Plan 

http://andismiles.com/financial-plan

List of Small Business Development Centers by state

https://www.sba.gov/tools/local-assistance/sbdc/

SBA Lender Match Tool

https://www.sba.gov/funding-programs/loans/lender-match

Apply online for a COVID-19 Economic Injury Disaster LoanGusto’s spreadsheet of COVID-19 Relief Resources for Small Business Owners (lists state resources)

https://docs.google.com/spreadsheets/d/1SRBZE2_6Nftwd02M6Oxj8MoeuZ7y93spXIgIPhkkp2w/htmlview#gid=0