In the midst of the worldwide pandemic, the Small Business Administration is helping small businesses obtain funding through emergency loan programs.
I’m sure you’ve heard of the government-backed SBA emergency loan funding available in the midst of the current pandemic. There are multiple rumors going around on social media and in the media about how much funding is available, who qualifies and when these funds will be released.
You’re probably wondering about repayment terms as well. Depending on the number of employees your small business has and what you spend this money on, you can get a $10,000 advance to your small business that doesn’t have to be repaid.
There’s also a program called the PPP (Payroll Protection Program) which allows you to get $1,000 for every employee. You should know, this money is forgivable if it’s spent on payroll, rent, mortgage, and utilities.
Although it seems like the world is a bit chaotic this is good news for small business owners and in this blog, you’re going to learn everything you need to know about qualifying for this funding.
Small Businesses That Qualify for Disaster Loan Money
Forbes had this to say regarding the small business funding via PPP (Payroll Protection Program) “Expanded access to U.S. Small Business Administration Economic Injury Disaster Loans: As part of its disaster assistance program, the SBA is providing working capital loans of up to $2 million to small businesses and nonprofits affected by the coronavirus. These loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits. Loan repayment terms vary by applicant, up to a maximum of 30 years. The stimulus updated the program so that sole proprietors and businesses with fewer than 500 employees qualify, and applicants don’t need to provide a personal guarantee on loans under $200,000. Payments can also be deferred for up to four years.”
Therefore, even freelancers, sub-contractors, and businesses with under 500 employees qualify for the small business funding through the Small Business Administration.
There are other government or state-funded programs available in the midst of the pandemic as well. You’ll be able to find other sources based on your location, industry, and circumstances surrounding if you’ve been able to operate your business in the last few months.
The government promised to release these funds within days of a successful application but the difficult part is applying for the funding if your bank isn’t accepting applications anymore (there’s been an influx in applicants)
Where to Get Funding
In conclusion, this is excellent news for all the small businesses across the country who have had to shut down due to the current situation in the world. Knowing that you may get loan forgiveness for both the Payroll Protection Program and the Emergency $10,000 business advance can make a world of difference for your small business.
Moreover, upon searching online for a lender (due to social distancing) you’ve probably found it difficult to know where to apply, what documentation is necessary and what the application process is like.
Here at the Zion Group, we’ve put together a new service for businesses just like yours who need funding but aren’t sure of the best way to go about finding it.
When you’re ready to get matched with an SBA Loan company that is readily accepting applications contact us:
Keith McLaurin | Licensed Commercial Broker ID#01190109 / NMLS#1209195