Small businesses act now! New Paycheck Protection Program funds are available
The program, created by the CARES Act, is an SBA low interest loan designed to help small businesses hurt by the coronavirus pandemic. Businesses can apply for a loan equal to 2.5 times their average monthly payroll costs. If 75% of the loan is used to pay salary and wage expenses, a portion of the loan may be eligible to be forgiven. Even better, your first loan payment is deferred for six months and initial interest rates were one percent.
Original funds in the program went quickly. Thankfully, we are being told a portion of the new funds are being reserved for regional and smaller banks so the help can get to main street businesses like yours.
Take action: Contact your bank immediately. They will direct you to the information required to apply for this program. Stay on them! Once the bank approves your application, it will be submitted by them to the SBA. The SBA will then confirm and approve the submission. Then all you can do is wait.
More money for EIDL grants
The new law also provides an additional $10 billion for funding emergency loan grants. The Small Business Administration is providing a quick, $10,000 grant with no repayment required, through their Economic Injury Disaster Loan (EIDL) program. The original program was shut down after all the available funds were given out.
Take action: For the $10,000 grant you must visit the SBA. Here is a link to the application site:
Check the site immediately and every day to know when they will start taking new applications. Be prepared with your company information and bank account information. Once approved, and if you are lucky enough to receive a grant, your bank account will receive the funds directly.
These new funds will not last long, so you will need to move quickly if you wish to help your business during the pandemic.
If you have any questions or seek guidance regarding the SBA Paycheck Protection Program, contact a Dugan & Lopatka professional at firstname.lastname@example.org or (630) 665-4440.