While the SBA and local banks are working out the details for the Paycheck Protection Program loans, quick cash may be available straight from the SBA for most businesses. We are encouraging businesses to apply for this grant program that does not have to be repaid. Here’s what you need to know.
The Coronavirus Aid Relief and Economic Safety (CARES) Act includes $10 billion to provide an advance of $10,000 to small businesses and nonprofits that apply for an SBA economic injury disaster loan (EIDL).
- Applicants must meet the SBA requirements of a small business (500 employees or fewer) which also includes:
- Sole proprietorships, with or without employees
- Independent Contractors
- Cooperatives and employee owned businesses
- Tribal small businesses
- Most nonprofits of any size
- For more information on eligibility, visit the SBA website
- Emergency Grants of not more than $10,000 will be distributed by the SBA within three days of applying.
- Grantees are not required to repay the grant, even if subsequently denied for an EIDL loan.
- Grant amount will be considered when determining loan forgiveness, if the applicant received a loan under SBA’s Paycheck Protection Program.
- Providing sick leave to employees
- Maintaining payroll
- Meeting increased costs to obtain materials
- Making rent or mortgage payments
- Repaying obligations that cannot be met due to revenue losses
The application is made directly to the SBA, not your local bank, and the application form is now available at https://covid19relief.sba.gov/#/ We know that all of this can be very confusing to the most astute business owner, so please do not hesitate to share this with others who might benefit from it and be sure to reach out to me or any member of our team with questions. We are here for you.
theKFORDgroup team is ready to assist you with your tax questions. Give us a call at (210)340-8351.