The federal government has developed several programs in addition to the Paycheck Protection Program to assist companies and organizations who are experiencing financial hardship during this challenging time. For more information on the Paycheck Protection Program refer to our CARES Act and Financial Assistance Blog.
Other financial assistance programs that were established or expanded by the CARES Act include:
- COVID-19 Economic Injury Disaster Loans
- Administered by the Small Business Administration (SBA) and applies to small businesses.
- Provides low-interest working capital loans of up to $2 million to help overcome the temporary loss of revenue the business is experiencing.
- For more information and to apply for this loan, visit the SBA – Disaster Loan Application website.
- Economic Injury Disaster Loan Emergency Advance
- Provides small businesses who are experiencing temporary financial difficulties with up to a $10,000 loan advance.
- The program is available for small businesses of fewer than 500 employees including sole proprietorships, independent contractors, the self-employed, non-profits and veteran organizations.
- This loan advance will not need to be repaid.
- For more information and to apply, visit the SBA – Disaster Loan Advance website.
- Express Bridge Loans
- Enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
- If a small business has an urgent need for cash while they are waiting for an Economic Injury Disaster Loan, they may qualify for an Express Bridge Loan.
- The loan will be repaid in full or in part from the proceeds of the Economic Injury Disaster Loan.
- For more information, you can review the Express Bridge Loan Pilot Program Guide.
- Debt Relief through the SBA
- The SBA will automatically pay the principal, interest, and fees of current 7(a), 504 and microloans for a period of six months.
- The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504 and microloans issued prior to September 27, 2020.
- The 7(a) loan program is the SBA’s primary program for providing financial assistance to small businesses. 504 loans are made available through SBA’s community-based partners for providing 504 Loans. The SBA Microloan Program provides direct loans and grants to eligible non-profit microlenders.
- For current SBA Serviced Disaster loans in regular servicing status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.
- Interest will continue to accrue on the loan but no payment will be due during this time.
- For more information, visit the SBA – Debt Relief website.
- Employee Retention Credit
- Provides a fully refundable tax credit equal to 50% of qualified wages paid after March 12, 2020, and before January 1, 2021.
- The maximum amount of qualified wages paid to any employee that can be taken into account is $10,000. This means the maximum amount of credit would be $5,000 per employee.
- For more information, visit the FAQs: Employee Retention Credit website
At SDHRC, we know keeping up with available resources for businesses surrounding COVID-19 can be daunting and complex, which is why we created our eShield Hotline service. Enroll in this complimentary service today to get your coronavirus questions answered by our HR professionals.
In addition to enrolling in the eShield Hotline, visit our COVID Resources page that is updated constantly by our team. This page features videos from our consultants on a wide range of COVID related topics, a FAQs document that is updated biweekly, government resources, and much more.