- March 27, 2020 1:32 pm
Last updated: 4/2/2020
Note: This post will be continually updated as additional resources become available. Please note that guidance is continually changing as
As the harsh realities of the economic impact of COVID-19 continue to unfold, the amount of available government resources that are becoming available seem to increase by the hour. This can certainly become overwhelming when researching how to help your small business. As of this writing Congress and the Senate have both passed a $2 Trillion stimulus package known as the CARES act to help small businesses recover. While some of the money is earmarked for the airline, hotel, and restaurant industries and likely not relevant to our ZenBusiness customers, others
There are five primary types of assistance available from the government for getting support during the COVID-19 crisis:
Currently, Small Business owners are not able to apply for unemployment. That is expected to change change once the CARES Act l is expected to pass in the federal government. For now, let’s dig into how current unemployment works. Traditionally unemployment benefits are handled at the state level and are available for employees of companies who pay into the state’s fund for unemployed workers through payroll taxes. Typically, independent contractors, the self-employed, and gig economy workers are not running payroll and therefore do not qualify.
Small Business owners in all 50 states and U.S. territories are now eligible and can apply for an emergency $10,000 advance that does not have to be repaid by going here. This emergency advance can be administered in as little as 3 days.
Once you apply for the Emergency Injury Disaster Loan Program (EIDL) an SBA representative will contact you within 45 days to assess and determine your eligibility for an additional loan under the program.
When can I apply?
Where do I apply?
The Employee Injury Disaster Loan is administered directly through the SBA and you can apply by going here.
The Paycheck Protection Program is authorized under the CARES Act to provide $349 billion in forgivable loans to help small businesses retain their employees during the COVID-19 crisis.
When can I apply?
Where do I apply?
The Express Bridge Loan Pilot Program is aimed at helping small business owners who have a relationship with SBA Lenders so they can borrow up to $25,000 with much less formality.
This type of loan can be used in the short term to help “bridge the gap” while they are applying for the Economic Injury Disaster Loan Program. If your need is urgent you may be eligible you may be eligible to qualify for an SBA Express Disaster Bridge Loan.
The Federal Reserve announced a new initiative on Monday, March 23, 2020 in order to complement the SBA programs and increase support for loans for small businesses. The specific details of this program are still unreleased and will be made available here as soon as more information comes to light.
Traditional SBA Loans (not related to COVID-19)
You can also learn more and apply for traditional SBA loans using the information below.
There are a number of other loan resources from the SBA that you can take advantage of to help your business. You can find more information or connect with a lender by visiting https://www.sba.gov/funding-programs/loans
Lender Match is a free tool that helps connect lenders and participating SBA-approved small businesses in as little as 48 hours.
Here are some of the different programs from the SBA.gov website:
You can use SBA’s Local Assistance Directory to learn more about how to get access to their network of counselors, and mentors that may be able to help with your small business near you. There are over 68 District Offices across the country, as well as support from Resource Partners such as SCORE, Veterans Business Outreach, Women’s Business Centers, and Small Business Development Centers.
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