This week on Small Business, Big Lessons™ — Resources for Small Business, COVID-19 edition.

The first option? Small Business Administration Disaster Relief Loans

The US Small Business Administration approved Governor Roy Copper’s request for the loans. Many area businesses may qualify and are encouraged to apply as soon as possible. The approval time is projected to be between 18-21 days from receipt of application. Loans under $25,000 are unsecured and may be approved in under 8 days.

The funds can be used for a wide range of payments including payroll, leases, utility bills, and more. Essentially almost all debt that was incurred as a result of COVID-19 on of after Jan 31. 2020 may be eligible.

Terms for new loans:

  • Interest rate 3.75% for small business / 2.75% non-profit
  • Maximum amount $2 million
  • Up to 30 years repayment
  • Three step application process on the SBA web site and required documentation below:
  • Completed Business Loan Application (SBA Form 5)
  • Tax Information Authorization (IRS Form 4506T) for the applicant, principals, and affiliates
  • Complete copies of the most recent federal income tax return including all schedules
  • Schedule of Liabilities and fixed debt (SBA Form 2202)
  • Personal Financial Statement (SBA Form 413)

Additional forms and supporting documentation may be required

Apply online at https://disasterloan.sba.gov/ela ,optionally call the customer service center 1-800-659-2955 or 1-800-877-8339 (TTY: Deaf and Hard-of-Hearing) to ask questions via email disastercustomerservice@sba.gov – online applications are preferred and will move faster.

In addition – if you have an SBA loan from a previous disaster – as of March 23, the payments will automatically be deferred until Dec 31, 2020. No action required and this applies for homes as well as small businesses with existing SBA disaster relief loans.

Push through

There is discussion underway to do more for small business and allow banks to work with the SBA potentially providing same day loans to cover payroll. We will post additional information when available. I would encourage everyone to push our politicians to focus on the American public and not play partisan games – small business and peoples paycheck are not a pawn – real people go to work to support themselves and their families – time for everyone to band together.

Feel free to post comments or email them to me. Small Business, Big Lessons™ – Stay safe and support small and local.

 

Small Business

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About the Author:

Gregory Woloszczuk is an entrepreneur and experienced tech executive that helps small business owners grow their top and bottom line. Gregory believes in straight talk and helping others see things they need to see but may not want to with a focus on taking responsibly for one’s own business. He and his wife, Maureen, started GMW Carolina in 2006.

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