COVID-19 Small Business Loan Information and Resources
Mar 25, 2020
Published in: ASRM Bulletin
Here are just a few of the opportunities available to you to receive financial support and assistance at this challenging time.
Federal: Small Business Association Economic Injury Disaster Loan ProgramSmall business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19).
The SBA is working directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19). The SBA’s Economic Injury Disaster Loan Program provides small businesses with working capital loans of up to $2 million in vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
These loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits. Loan repayment terms vary by applicant, up to a maximum of 30 years.
- As of March 23, businesses in every state and territory can apply.
- You can use the loan to cover accounts payable, debts, payroll and other bills COVID-19 has affected your ability to pay.
- Apply online and select “Economic Injury” as the reason you’re seeking assistance.
- You’ll need to supply required supporting documentation that could include the business’s most recent tax returns a personal financial statement and a schedule of liabilities that lists all of your current debts.
- For assistance in filing your application, contact the SBA Disaster Assistance Customer Service Center at 1-800-659-2955.
Additional Federal Guidance for Small BusinessesThe Centers for Disease Control and Prevention (CDC) offers the most up-to-date information on COVID-19. Based on what is currently known about COVID-19, the Administration issued Interim Guidance on the COVID-19 Response. This guidance may help prevent workplace exposures to acute respiratory illnesses and provides planning considerations if there are more widespread, community outbreaks of COVID-19.
The CDC’s core recommendations for small businesses and others include:
- Addressing Stigma/Discrimination: The CDC’s Guidance for Businesses and Employers recommends steps including:
- Actively encourage sick employees to stay home;
- Emphasize staying home when sick, respiratory etiquette and hand hygiene by all employees;
- Advise employees, before traveling to check the CDC’s Traveler’s Health Notices for the latest guidance and recommendations for each country to which they may travel.
State and Local Coronavirus Small Business AssistanceStates and municipalities are rapidly proposing their own response measures. For the latest information, check your governor’s website for up-to-date information about relief available in your state. You can find a list of governors’ websites here. These programs, which are cropping up across the nation, include resources to support everything from covering payroll expenses to placing a moratorium on evictions for small businesses.
Key Provisions to Know About in the Enacted Federal Response Package
- Congress passed, and the president signed, the Families First Coronavirus Response Act on March 18. The bill, which is in effect March 2 – December 31:
- Expands paid leave requirements for employers with 500 employees or fewer;
- Provides $1 billion in 2020 for emergency grants to states to support unemployment insurance funds and processing; and
- Authorizes refundable tax credits for employers (up to 100% of the sick leave paid out due to COVID-19-related leave). Note that qualified family leave wages are capped at a per day/per individual rate. To learn more, please see this summary from the Kaiser Family Foundation.
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