Borrowers can apply for a Paycheck Protection Loan until March 31, 2021. Continue >>
Borrowers can apply for a Paycheck Protection Loan until March 31, 2021. Continue >>
Small Business Relief Financing for COVID-19
At Loan Solutions OU, our mission is to find solutions for small business owners, fast. With the passing of the CARES Act, the SBA has created the Paycheck Protection Program (7a) and Economic Injury Disaster Loan (7b) to help businesses around the country who have been affected by the COVID-19 pandemic. In addition, they are offering SBA Express Bridge Loans and other financing relief options during this difficult time.
Small Business Relief Financing for COVID-19
At Loan Solutions OU, our mission is to find solutions for small business owners, fast. With the passing of the CARES Act, the SBA has created the Paycheck Protection Program (7a) and Economic Injury Disaster Loan (7b) to help businesses around the country who have been affected by the COVID-19 pandemic .In addition, they are offering SBA Express Bridge Loans and other financing relief options during this difficult time.
COVID-19 Relief Financing Options
COVID-19 has affected businesses all over the United States and there is a lot of uncertainty as businesses make their way through the pandemic. Loan Solutions OU is here to help. We know the amount of information surrounding the outbreak can be overwhelming. Good news is that there is small business relief financing for COVID-19 available. That’s why we’ve created this page to help you find information about government financial relief programs, as well as other resource guides to help navigate your way through the outbreak.
SBA 7(a) Paycheck Protection Program
The SBA created the Paycheck Protection Program in order to help small businesses going through financial hardships pay their active employees. This program was originally designed to provide small business with funds to pay up to 8 or 24 weeks of payroll costs, costs related to group health care benefits during periods of paid sick, medical or family leave, and insurance premiums. The funds can also be used to pay interest on mortgages, rent and utilities, interest on payments, costs caused by looting or vandalism during 2020 and certain supplier costs and expenses for operation. Recently additional funds have been authorized for the Paycheck Protection Programs and business are able to apply for either a First Draw Loan or a Second Draw Loan. It is important to note that information regarding the PPP changes often, the best resource for up to date information is to visit the SBA’s website.
Borrowers can apply for a Paycheck Protection Loan (either First Draw or Second Draw loan) until March 31, 2021.
The Small Business Administration has provided details on their website regarding businesses that are eligible for the loan forgiveness. The SBA will only forgive loans if certain criteria are met for either PPP-1st Draw Overview or PPP-2nd Draw Overview
Instructions on how to apply for the PPP 7(a) loan forgiveness as well as the application is now available.
Questions regarding the PPP loans may be directed to the Lender Relations Specialist in the local SBA Field Office. Local SBA Field Offices may be found at: https://www.sba.gov/tools/local-assistance/districtoffices.
For more information about SBA approved 7(a) lenders and the application process, click here.
Instructions on how to apply for the PPP 7(a) First Draw and other information is now available.
Instructions on how to apply for the PPP 7(a) Second Draw and other information is now available.
For more information, please visit https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program.
SBA 7(b) Economic Injury Disaster Loan (EIDL)
The Economic Injury Disaster Loan 7(b) is a loan provided by the Small Business Administration that offers economic help to small businesses and nonprofit organizations throughout the entire country that are currently experiencing a temporary loss of revenue. During the COVID-19 pandemic this loan relief option granted thousands of businesses the opportunity to keep their business afloat by providing them with working capital to cover their current needs.
The SBA currently is still accepting loan applications for this type of loan, however, this is subject to change at any given time depending on the funds available. Therefore, it is super important to check their website for the most up to date information prior to applying for EIDL loan.
The SBA also offers the EIDL Advance. This advance is a grant program that was offered in conjunction to the EIDL 7(b) program which gave approved businesses access to working capital. The amount of the working capital was determined by the number of active employees the company had (as stated in the EIDL loan application). However, it is noted that at this time they are no longer accepting applications. Please visit their website for up to date information and open registration.
SBA Express Bridge Loans
SBA Debt Relief
Currently the Small Business Administration is offering financial reprieve to small businesses during the COVID-19 pandemic. At this moment they are offering relief options such as the 7(a), 504, Microloans, Disaster Home and Business Loans.
For more information regarding financial relief during the Coronavirus pandemic, please visit their website.
Business needs caused by COVID 19
This new pandemic has caused major impact as cases rise every single day. The need for social distancing has caused the economy to have a major shift. While a recession has not been confirmed, the federal and state government has advised business owners to take extra precautions as they are forced to obligate many businesses to shut down or operate remotely. In consequence, many industries have been negatively impacted and need capital immediately in order to stay in business. Currently, there is no official report stating when this pandemic is anticipated to be over, however, state and federal officials as well as some banks statewide are offering financing options to those that qualify until the country is able to recover.
Small business relief financing for COVID-19 may help businesses that are in need of:
- Working capital to cover unexpected costs due to economic changes in the company or loss of revenue
- Payroll to be able to pay employees even if they had to pause work due to the business closing from state regulations as well as employees working remotely. We recommend reading about the new Coronavirus Emergency Aid Package to see if your company meets the requirements
- Increase in equipment, this is particularly true for many healthcare providers including hospitals and urgent care facilities.
- Workforce capacity is another huge need for a few companies. Some industries are facing higher demands of product and services due to the pandemic and therefore need more staff to be able to meet the high demands. Pharmacies, supermarkets, and health care providers are the industries that are mostly impacted.
- Inventory and supply chain has also impacted a lot of companies. Supermarkets, hospital, among many other businesses are on a race to get their hands on new inventory to meet client needs.
