I would have posted this earlier but I wanted to have a call with my accountant & tax guy this afternoon before I passed along any information I didn't fully understand.
To be clear: I'm just passing along some information from my call today. I'm no expert here! But I had a really eye-opening conversation with Elliot today and I thought sharing what I learned would be helpful.
And if you want to speak with Elliot, he really knows his stuff. 💵 You can find him at northbrookfinancial.com. Tell him I sent you and he'll roll out the red carpet for you.
Here are the 2 loan/grant programs that every US-based small business owner can apply for.
1. Economic Injury Disaster Loan
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington DC, and territories are eligible to apply for an Economic Injury Disaster Loan 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. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
I just applied for this today and it took ~10 minutes. You can literally apply for this right now!
2. Paycheck Protection Program
Small businesses may qualify for loans up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount. Loan payments will be deferred for six months and if you maintain your workforce and the SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses. Contact your business bank as soon as possible for information on how to apply.
Applying for this one is a bit more complex, as applications open tomorrow (Friday, April 3) and you're supposed to only be able to apply for this loan through a designated lender (bank). They're supposed to announce the designated lenders tomorrow morning, Friday, April 3.
My plan is to call the SBA directly (1-800.659.2955) at 8AM EST on Friday when they open and have see what exactly I need to submit. Then I'll apply through Capital One Bank if they're a designated lender (that's where I do my business banking). This will entail calling someone at my local branch and having them walk me through the process since they're not doing in-person banking right now.
The SBA already has a 📝 sample application, which I've filled out in preparation for tomorrow. It says. "SAMPLE" across the pages so not sure if I'll have to fill out another official form when they release it tomorrow, but I feel more prepared with least something filled out already.
Along with your application, you'll need to export a payroll report from 2019 and 2020 (year to date) and attach it with your application. We exported this right from Gusto and it was pretty easy.
I will keep posting updates in the comments below so it's a bit more concrete for folks who are reading this later on...
Well...that's it! Hope this was helpful for you.
This is a scary, stressful and unsure time for all of us who work at a small business. But now is not the time to let fear take over; be brave, take the necessary steps and together, we'll get through this.
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