First and foremost, we hope this Month’s AMI Digest finds you and your family healthy, safe and maintaining a positive mental outlook, amidst this most challenging of times.
The Federal Government recently approved a $2T Coronavirus Relief Bill – The U.S. Small Business Administration (SBA) is working directly with state governors to provide targeted, low-interest loans to small businesses and nonprofits that have been severely impacted by the coronavirus.
Here are some of the ways this economic stimulus package may be able to assist you and/or your company.
Economic Injury Disaster Loans and Loan Advance
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
SBA Debt Relief
The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis.
Under this program, the SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020 The SBA will pay the principal and interest of current 7(a) loans for a period of six months.
SBA Express Bridge Loans
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses and can be used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
Find an Express Bridge Loan Lender by connecting with your local SBA District Office.