There are many worries from small business owners during this ever changing and unknown time in our country. Many small businesses have had to shut down or limit operations in order to comply with government orders created to prevent the spread of COVID-19. This has left many small business owners wondering how they are going to keep their business afloat during these trying times. There are two different programs currently released by the Small Business Administration that were created to help these business owners pay their expenses while they are forced to be closed.
Program 1: Economic Injury Disaster Advance Loan
This program is a loan of up to $10,000 that can be applied for on the Small Business Administration website. This loan advance is designed to help those who are experiencing a loss of revenue due to COVID-19 and can be used for regular business expenses such as payroll, rent, or utilities. This loan advance will not have to be repaid.
Program 2: Payroll Protection Program
This program is a loan of up to 2.5 times your average monthly payroll. It can be used for expenses such as payroll, rent, utilities, mortgage interest, and interest on debt acquired before 02/15/2020. This loan can be applied for at any local bank. With approval of spending on necessary expenses this loan is eligible for up to 100% forgiveness.
You can apply for one or both of these options through the correct outlets to help your small business during a loss of revenue due to COVID-19. Check out the links above to see if you qualify.
*Please keep in mind that if this money is not spent on payroll and other necessary expenses it may be required to be repaid with interest.