There are several programs out there right now to assist small business as we struggle through this Covid-19 landscape. I've been reading diligently and have attended two webinars on the subject and will continue to learn as much as I can. Here, I will l only cover the two loan programs. For more updated information please follow Carlson Accounting on Facebook @carlsonaccounting.
The SBA is offering loan packages in two ways, Economic Injury Disaster Loans(EIDL) and Payroll Protection Loans(PPL). Each business has unique circumstances that should be considered to maximize the assistance you can get.
The EIDL process is simple to apply for and has the possibility of disbursing a $10,000 advance very quickly. We do not know how the full application process will work but this may be the quickest way to get assistance. We are told that you could roll the funds into the PPL later but I'm not sure how that will work. Apply for this loan here, https://covid19relief.sba.gov/#/
The PPL loan was designed for those companies that are still open or are still paying their employees. Under certain circumstances, this loan may be forgiven at a later date. The maximum loan amount is $10mil or 2.5 times your average monthly payroll for the 12 months prior to getting the loan. This program will be administered by your local bank. We are tracking the process with some of the local banks and will update our Facebook page as we hear they are ready. But I suggest you call your banker to get on the list.
Local Bank Payroll Protection Loan Application
I recommend filing the EIDL application to get the process started and contact your bank about the PPL loan.
Please call if you have questions about your circumstances so we can discuss further and follow us on Facebook.
Thank you. Stay safe and God Bless!
Jeff Carlson, CPA