WHAT HAPPENED TO THAT $350 BILLION DOLLARS THE GOVERNMENT ALLOCATED TO KEEP SMALL BUSINESSES AFLOAT DURING THE CORONAVIRUS PANDEMIC?
Last week, tens of thousands small business owners stood on long lines at their banks to fill out applications for the Paycheck Protection Program, but so far, few, if any, have received any money to keep their employees on staff. No one can say for sure when the promised relief will actually filter down to business owners. Best estimates say, it may take weeks, or even months, during which time, millions more may lose their jobs, and many businesses will may have to liquidate.
Fortunately, the government has provided several additional relief packages which are more likely to provide short term help than the Paycheck Protection Program.
Ordinarily, the Small Business Administration, does a great job of funding small businesses, but it is simply not equipped to quickly disperse billions of dollars through America’s banks. And the banks, well, they’re in no hurry to provide funds without assurances that the Federal government will make them whole once the crisis is over. In other words, it’s a huge convoluted mess, and it’s anyone’s guess how long it will take to unplug the bottleneck.
So, what are your options if you’re a small business owner running out of cash and letting valued employees go? Fortunately, the government has provided several additional relief packages which are more likely to provide short term help than the Paycheck Protection Program.
We will examine each option for you and show you how to apply.
The Economic Injury Disaster Loan Program
Application method – online Time – 2 hours Amount – Up to $2,000,000 Advance – Up to $10,000 or $1,000 per employee.
The Economic Injury Disaster Loan Program will advance eligible businesses experiencing a temporary loss of revenue due to the pandemic, up to $10,000.
Applicant businesses must have fewer than 500 employees, and as few as one – so this program applies to sole proprietorships, independent contractors, and even the self-employed.
The best part for hard pressed business people, is that the funds will be dispersed within days of a successful application, and the loan will not have to be repaid.
For application information, call 1-800-659-2955 or email DisasterCustomerService@sba.gov.