The COVID-19 pandemic has resulted in an economic crisis for many businesses. If your small business has been adversely affected, there are steps you can take to get financial assistance. From payroll protection loans to other kinds of government loans and grants, to other financing solutions, your business might choose from a variety of options.
Payroll Protection Loans
Your first step may be to apply for the Paycheck Protection Program (PPP). This government program is designed to help small businesses cover payroll costs and a few other necessary expenses. The program is primarily intended for small businesses with fewer than 500 employees, but there are some exceptions. You can find a wealth of information about the PPP on the page created for it on the Small Business Administration (SBA) website.
The PPP is offering up to $10 million per business, and that includes up to $100,000 in payroll costs per employee. These funds may also be used to pay for mortgage interest, rent, and utilities provided that they were established by February 15, 2020. At least 75 percent of the money must be applied to payroll costs in order to be forgivable. The deadline for applying for one of the payroll protection loans is June 30, 2020. However, the funding for the Paycheck Protection Program is limited and will be administered on a first-come, first served capacity, so you should apply as soon as possible.
Emergency Economic Injury Grants
Another resource worth considering is an Emergency Economic Injury Grant. This is a $10,000 grant supplied by the SBA, and the funds may be accessed within three days of approval. In order to be approved, you must first apply for an Economic Injury Disaster Loan (EIDL). Once you have done this, you can then apply for the grant.
Economic Injury Disaster Loans
An EIDL may take longer to be approved for and process than is feasible for your business. On the other hand, if your business can wait a few months, some approval requirements have been relaxed. The funding for each business may be up to $2 million with this type of loan, so it is certainly worth exploring. Either way, you need to apply for one of these loans to qualify for the Emergency Economic Injury Grant, so you may want to apply sooner rather than later.
Financing During Uncertain Economic Times
Factors such as a pandemic can leave business owners uncertain about the future. Fortunately, there are more resources available than you may realize. Even if your business is not approved for one of the payroll protection loans or other government loans and grants, or if the available funds become depleted, there are other financing solutions. Contact Whitefish Funding today for more information.