American small businesses are facing unprecedented challenges to their survival. This economy is at its worst state in over 70 years, with some families facing losses similar to what happened during the Great Depression.
Everything changed in March 2020. With most state governments restricting business access because of the COVID-19 outbreak, unemployment numbers surged to record levels.
On March 27, President Donald Trump signed the CARES Act into law, making it the first of several relief and stimulus packages that would try to keep the economy going.
Although the different programs open and close based on existing legislation, here are the options to review.
Paycheck Protection Program
This loan provides companies with the funds needed to retain employees by ensuring that payroll gets met each month. It’s a temporary expansion of the traditional SBA 7(a) program, and it offers forgiveness to companies that use the money as instructed. You might even get the added benefit of writing payroll costs off on your taxes.
This SBA loan offers economic relief to nonprofit companies and SMBs who experience temporary revenue reductions.
SVO Grant Program
If you are a shuttered venue operator who cannot host shows, concerts, or other large gatherings because of COVID-19 restrictions, this grant program provides emergency assistance. Your business must meet the eligibility requirements to qualify.
SBA Debt Relief
If you are a small business trying to stay alive during the coronavirus pandemic, this program could offer a financial reprieve.
SBA Express Bridge Loan
When a business already has a relationship with an SBA Express Lender, this program enables the company to access up to $25,000 immediately.
Several additional programs are available from state and local governments in these areas to provide the help you need to stay afloat. These are trying times, and it might be 2022 before everything gets better. That’s why you need to know about these programs.