The Coronavirus or COVID-19 is a deadly virus which has spread unexpectedly throughout the world. This pandemic threatens not only the lives of millions of people but also their means of living. It is indeed a very difficult time, but the government is here to provide help for us.
The Coronavirus Stimulus Relief was established to help small business owners to whatever they need at this point in time. It will come from the $349 billion Paycheck Protection program that was part of the $2.3 trillion economic package enacted at the end of March. From this, all kinds of businesses affected by the pandemic may now start applying for their emergency loans to atone for their payroll and other expenses.
Starting Friday, April 3rd, small businesses and sole proprietorship owners may begin the application, and next Friday, April 10th, for independent contractors and self-employed people.
Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act are different kinds of loans made for different kinds of needs. Below are brief overviews to help you get to the right loan.
- PAYCHECK PROTECTION PROGRAM
If you are a struggling employer whose employees are working from home, hence, still paying their wages, then this assistance is for you. You may send an application until June 30, 2020. Your business must have been operating on February 15, 2020, for you to be eligible.
- SMALL BUSINESS DEBT RELIEF PROGRAM
If you have a non-disaster Small Business Administration (SBA) loan and is struggling to pay the loan payments, this program is for you. This relief will cover up your payment for 6 months, including the principal, interest, and other fees. People who can borrow include those who have just applied for loans within 6 months after the bill was passed to law.
- ECONOMIC INJURY DISASTER LOANS & EMERGENCY ECONOMIC INJURY GRANTS
If your business is substantially injured by this crisis and needs quick assistance of cash, then this loan is for you. Under this, you may be provided up to $10,000 within three days of application. To avail, first apply, then request for the advance. You are under any no obligation to repay immediately, and you may use this cash for anything that will aid the financial and economic status of your business.
- CONTRACTING
If you are a government contractor whose employees and subcontractors cannot work due to the necessary implementations needed to contain the virus such as the closing of establishments or facilities, then this is for you. You may work with local resource partners (to be discussed later), your SBA District Office, the agency’s contracting officer, or agency’s Office of Small and Disadvantaged Business Utilization (OSDBU).
The government also offers free counseling and training for small business owners. You just have to go to your local Small Business Development Center (SBDC), Women’s Business Center (WBC), or SCORE mentorship chapter. They also have developed a joint information platform regarding COVID-19 to keep the business owners updated rightly. Visit this link, https://www.sba.gov/local-assistance/find/, to find your local resource partner.
Also, the Minority Business Development Agency’s Business Centers (MBDCs) also cater to the same. However, they are only present in selected areas. The government supports this resource partners through continuous funding for the betterment of service to the people.
WHAT DO I NEED TO KNOW BEFORE APPLYING?
You need to know first the amount of your monthly expenses such as payroll, rent, utilities, and debt. You also need to make sure to have a copy of your tax returns before applying because the loan will be disbursed to the banks, hence, the verification of business operation on February 15 and the aforementioned monthly expenses. The loan will cover up 8 weeks of these and may reach up to $10 million.
This is good news for Philadelphia and everyone affected by this pandemic. The understanding and totality of the stimulus relief may feel complicated and the application of loans may feel tough, especially that several documents and monthly expenses need to be determined first before applying.
JD Tax & Accounting Advisors would love to help you. Our accounting firm believes that attempting to get cash assistance is very important but should be the least of your worries with so much in mind to worry about.
Fret not. Let us talk and overcome this together. BOOK YOUR APPOINTMENT NOW!
