Covid-19 Business Relief Loans From the US Government
Let me spare you the sordid details of how this prevalent health crisis has impacted heavily on the average American. The unprecedented economic disruption levied by the Covid-19 pandemic seems to have hit the American small businesses the most.
Its, however, much delightful to find out that the American government is showing strong empathy for this largest labor force sector. Both the federal and state governments and even some big private outfits have stepped up massively to the call.
In a giant stride to soothe the economic woes that this health crisis has inflicted in small businesses, the government has championed and opened up their loan wallet
to several relief and loan programs for small businesses. Here are some fascinating programs that can help you and your employees to bounce back.
The CARES Act
Of course, it’s no news that on March 27, 2020, the Congress passed the famous Coronavirus Aid, Relief, and Economic Security (CARES) Act
, which was duly given signatory by President Trump. The $2 trillion economic relief package as much as it is generous for American small businesses, more expedient measures have been taken following this road map to get these small businesses up and running once this whole pandemic is over. Some of these fantastic programs include;
The Economic Injury Disaster Loan (now with extended access)
The initial response on the effects of the novel Coronavirus pandemic on small businesses by the American government was to provide an Economic Injury Disaster Loan of up to $2 million, with a nonrefundable advance of up to $10,000. This loan advance is only accessible upon applying and been up to par with the requirements. With a strong intent to offer relief to small businesses whose revenue is hard hit by this health crisis, this loan advance option is only available for companies with less than 500 employees and private non-profit organizations. This loan is speedily made accessible upon successful application.
Paycheck Protection Program (now updated)
The CARES Act also set the ball rolling for the small business Paycheck Protection Program. The PPP is established to offer small businesses a forgivable loan of up to $10 million. Working with lenders like banks and credit unions, small businesses can access this loan and keep the payroll afloat for eight weeks. Employee benefits and salaries are to be maintained at standard rates. The fund can also be applied in clearing interest on rents, mortgages, and utilities. This program allows for business loans without sky high interest
when compared to what merchant cash advance companies are charging.
The Updated CARES Act
The Paycheck Protection Program
and Health Care Enhancement Act (the “Act”), passed by Congress on April 23, 2020, witnessed some critical ramifications to the existing CARES Act. An additional sum of $484 billion was implanted in the previous Act. The PPP program got a boost of $310 billion, from $349 billion to $659 billion, with the additional $60 billion, mapped out for smaller lending institutions.
The EIDL program also got a boost of $10 billion, from $10 billion to $20 billion. If you own a small business, don’t get yourself beat up cause of this current health challenge, take the opportunity of these cash advance loans
. And in Texas, New York, New Jersey, and the rest of the east coast business loans
can be a great option.