Every day brings new information regarding resources for businesses dealing with the coronavirus outbreak. The federal government is issuing relief in the form of grants and loans under the Coronavirus Aid, Relief and Economic Security (CARES) Act. It is critically important that small businesses and non-profits utilize the federal relief available and apply quickly since it is a first come- first served program.
1) Small Business Guide to the CARES Act: Prepared by the US Senate Committee on Small Business and Entrepreneurship
The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act are intended to assist business owners with whatever needs they have right now. When implemented, there will be many new resources available for small businesses, as well as certain non-profits and other employers. This guide provides information about the major programs and initiatives that will soon be available from the Small Business Administration (SBA) to address these needs, as well as some additional tax provisions that are outside the scope of SBA.
• Looking for capital to cover the cost of retaining employees? Then the Paycheck Protection Program might be right for you.
• A quick infusion of a smaller amount of cash to cover you right now? You might want to look into an Emergency Economic Injury Grant.
• To ease your fears about keeping up with payments on your current or potential SBA loan? The Small Business Debt Relief Program could help.
• Just some quality, free counseling to help you navigate this uncertain economic time? The resource partners might be your best bet.
View the guide here with links on how to apply
2) Applying for the Paycheck Protection Program
SBA has posted the interim final rule for Paycheck Protection Program (PPP), and 7a participating lenders are now able to accept PPP applications. Attached is a fact sheet for borrowers, a copy of the loan application, and an overview of PPP, along with a copy of the regulation itself. The following information came directly from SBA.
FINDING A LENDER:
Borrowers may identify an eligible PPP lender by zip code at this page .Not all eligible lenders may be prepared to accept PPP applications, yet. More lenders will be added as eligible entities are onboarded. Please note, this search tool only lists the bank HQ addresses. Large multi-branch entities may not appear in the tool. I’ve attached a list of current, as of 4/3, eligible SBA lenders that the administration shared with us but do not have any other information about the lenders who will definitively take part in PPP.
HELP WITH APPLICATION:
SBA’s network of resource partners stands ready to assist businesses with PPP. You may visit the SBA website to find the nearest SBA partner or SBA office. The NYS Small Business Development Center has advisers statewide available to provide remote assistance. Please visit www.nyssbdc.org to make an online request for counseling.
More details/FAQ’s will be forthcoming, but please contact your SBA partner or office if you have specific questions.
3) Economic Injury Disaster Loan
Another component of the CARES act is the Economic Injury Disaster Loan which is an advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid.
To apply for a disaster loan unrelated to COVID-19, click here.
4) List of local resources
Many of you have asked for support understanding the program and completing the applications. In addition to the SBA sources in the link above, we are working on compiling a list of local resources to help the businesses.
Sincerely,
Lisa Davis
Business Ambassador
City of New Rochelle
914-202-5936 (mobile)
914-654-2189 (office)