Small businesses are always impacted heavily by disasters. Especially with this pandemic, small businesses have been impacted in a major way by the Covid 19 pandemic. Many are trying to stay afloat and struggling to do so. In an effort to keep these establishments open, the CARES Act has outlined a few resources to help ease the financial burden of small businesses everywhere.
An Economic Injury Disaster Loan provides financial relief to small businesses and non-profit organizations that are experiencing a temporary loss of revenue. These loans apply to small business owners, agricultural businesses and non-profit organizations as well. The interest rates are low (3.75% for businesses and 2.75% for non-profits). It’s a 30 year loan and there are no fees for paying the loan off early. The payments are deferred for a year; however, you can choose to make payments at any time. Businesses who wish to borrow more than $25,000 are required to put up collateral. If you’re interested in a loan of this nature, you can apply by clicking here.
SBA Express Bridge Loans
This loan works in conjunction with the EIDL. You can apply for this express loan while you wait for your EIDL application to be processed and approved. According to sba.gov, “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 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loan or 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 an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.”
SBA Debt Relief
The Small Business Association has committed to paying six months of principle, interest and all associated fees that borrowers owe on any microloans. This applies to all loans distributed between the allotted time frame. The loans are required to have been distributed before September 27th of 2020. One of the best parts of this arrangement is that they will pay on loans that are both in and out of deferment. If you owe money now, they will make six monthly payments on your behalf. If your loan is currently in deferment, they’ll wait until your loan is due to make six months worth of payments for you. This will essentially give businesses a grace period as well as six months of a discount on their loans. It’s a great option that can provide much needed relief to many small businesses.
Before you consider closing your small business, make sure you explore every avenue available that could potentially save your establishment. Take advantage of loan opportunities that can help see you through these challenging times.