THERE IS FINANCIAL ASSISTANCE AVAILABLE TO SMALL BUSINESS OWNERS.
Practically every small business is feeling the financial impact of the COVID-19 pandemic sweeping the world. The restaurant and hospitality industries have been hit the hardest, but every business has seen the adverse effects.
Congress has recently allocated $7 Billion to the Small Business Administration under the enacted Coronavirus Preparedness and Response Supplemental Appropriations Act to help small businesses with loans to get through this crisis. And there may be $350 Billion more!
It looks like the loans to small business owners for working capital, paying off fixed debts, payroll or other bills that cannot be paid because of the effects of the pandemic. The terms will include:
- Up to $2 million per loan.
- The interest rate will be 3.75% for up to a 30 year loan.
- The term could be up to 30 years based on the borrower’s ability to repay.
Applicants will have to demonstrate economic injury and an inability to get loans elsewhere.
Your business must first qualify as “small business” which must satisfy a two-part test:
- A maximum number of employees ranging from 100 to 1,500 employees.
- Revenue from $750,000 up to $36.5 million.
To determine if you should look at the SBA’s size standards interactive tool to determine if you are likely to qualify as an eligible small business. If you think your business might qualify, start colleting the docs you need using the SBA’s loan documentation forms.
The next step is to apply for the loan on the SBA’s COVID-19 website.
Taking advantage of this program now may be the best way to help keep your business afloat in these difficult times.