If you’re a business owner who has been impacted by the coronavirus outbreak, you may be able to qualify for financial aid and relief from a variety of sources. Now that the federal government has passed phase three of its stimulus packages to address the economic fallout from the novel coronavirus, known as the CARES Act, more funding options are available to small businesses across the country.
First and foremost, you’ll want to consider applying for an Economic Injury Disaster Loan (EIDL) from the SBA. This program is already up and running, and you can begin the application process today.
Currently, all U.S. states and territories have been declared disaster areas by the SBA, and therefore, small businesses across the country are eligible to apply for these business loans, regardless of the specific location.
Through this program, the SBA is providing Economic Injury Disaster Loans to eligible businesses to help offset the temporary loss of revenue due to the coronavirus outbreak.
EIDLs are low-interest, long-term working capital loans that, unlike most SBA loans, are funded by the SBA. With the passage of the CARES Act, the EIDL program received an additional $10 billion in funding from the federal government. You’ll also be able to receive up to $10,000 in an emergency grant cash advance that may be forgiven.
Advance amount is determined by number of pre-disaster (as of 1/31/20) employees: $1,000 per employee up to a maximum of $10,000
SBA is offering max loan amounts of $15,000 for EIDL (on top of the $10,000 advance amount, which is forgivable)