SBA: Disaster Loan and Paycheck Protection Program Webinars
The Alabama Small Business Development Center is hosting three webinars this week to inform business owners on the updated process of applying for the SBA Economic Injury Disaster Loan (EIDL), the $10,000 forgivable advance and the Paycheck Protection Program.
SBA relaunched its online application for the EIDL. The new process allows applicants to request a $10,000 advance (forgivable loan) that can be applied toward payroll, rent and other allowable expenses. Currently, the new online application is the only way to access the $10,000 advance. Funds are directly deposited into the account of the business within three days. Those who have submitted an application and need the immediate cash are encouraged by SBA to submit an application through the new disaster loan website. The new application is more streamlined than the initial online application. Applying for the advance will not impact the status or slow an existing application.
The CARES Act updated certain parts of the EIDL:
- Personal guarantees are not required for loans under $200,000 (the previous limit was $25,000).
- The borrower does not need to show that credit is not available elsewhere.
- The $10,000 advance is forgivable even if the applicant is denied for the disaster loan.
- Application deadline for the EIDL is December 21, 2020.
Paycheck Protection Program
The Paycheck Protection Program (PPP) provides small businesses with funds to pay up to eight weeks of payroll costs including benefits. This loan can be forgiven. For a full overview of the PPP, click here.
Starting Friday, April 3, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders. Starting Friday, April 10, independent contractors and and self-employed individuals can apply. For more information on borrowing, click here. The application can be found here.
The U.S. Chamber has created their own digital platform, CO-, which was designed to specifically provide business owners different subject matter and expertise. During this time, a specific COVID-19 page has been created and includes their Coronavirus Small Business Guide.