Federal Small Business Disaster Assistance Funding Has Been Approved – GET READY TODAY!
Congress has passed a second round of disaster funding for small businesses. As soon as the legislation is signed, the two Small Business Administration (SBA) programs will reopen processing of the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL). If you have not yet applied for these programs and you wish to do so, the most important thing you need to know is that time is of the essence. YOU MUST APPLY FOR THESE FUNDS AS SOON AS APPLICATIONS OPEN IF YOU WANT THE BEST CHANCE OF GETTING FUNDED. Funds will be exhausted within days, if not hours.
EIDL is administered directly through the SBA and you must apply through their website. For the PPP you must apply through a lender – NOW is the time to decide what institution you will be applying with, and filling out any preapplication on their website. The first place you should try is your existing bank. Call your bank – preferably your relationship manager if you have one – and see if they will be participating and if they can send you a link to the application when it goes live. If you cannot get through, check your bank’s website.
If your bank is not participating, there are many new lenders participating in the second round, beyond traditional lenders. Intuit (the company behind Quickbooks), PayPal, Square and AmEx are among the next round of participating institutions. Do you use any of these services? If so visit their website NOW and sign up to be notified when their links are live. It is likely that they will be prioritizing existing customers so contact the ones you already work with first. There are also smaller local banks that are advertising that they will accept new clients for PPP and may have less volume to contend with. We listed some below but you should also consider checking with your community bank. Please note that many banks are still oversubscribed from the last round and may not be accepting new applicants.
As ever, if there is anything Evergreen can do to help your business please let us know. We have included some links below for more information about the programs themselves and some of the participating non-bank lenders. Contact Natalie Vichnevsky if you have questions or need more information.
The Paycheck Protection Program is administered by a financial institution and provides for a partially forgivable loan equivalent to 2.5 times your monthly payroll. You can learn more about it here.
The Economic Injury Disaster Loan program is administered by the Federal government through the SBA. Loans can go up to $2 million and you may be eligible for an upfront grant of $1,000 per employee retained for a maximum of $10,000. You can learn more about it here.