How Small Businesses Can Apply For Coronavirus Relief Loans
Small-business owners, independent contractors, sole proprietors and others who are eligible can start applying for loans through the Small Business Administration’s Paycheck Protection Program and the expanded Economic Injury Disaster Loan Program, which are part of the $2 trillion coronavirus stimulus package signed into law last week.
The PPP authorizes up to $349 billion in forgivable loans to small businesses to prevent more layoffs and allow companies keep their employees on the payroll during the COVID-19 pandemic. The EIDL can give business owners fast relief through emergency grants up to $10,000 that do not have to be paid back. But unlike the PPP, which is entirely forgivable if you meet requirements, you will have to back any remainder of an EIDL loan, minus the grant.
The EIDL program, run through the SBA, is available now to all who qualify, but the PPP is off to a bumpy start. Banks are administering the PPP and have complained about fuzzy guidelines. The final guidance was just published Thursday night, and some banks are still preparing to accept applications. “Many banks are still writing code,” said Karen Miller, the former head of the SBA under the Obama administration.
Getting these PPP loans out is an ambitious goal for the SBA. ”$349 billion is 10 times the record year of SBA-guaranteed loans in 2010,” Miller said. “It is a Herculean task to get this out and distributed in weeks or months.”
Here’s what we know about how small-business owners can apply for these loans:
There are multiple ways for small businesses and small-business owners to get SBA relief.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act expanded the SBA’s existing Economic Injury Disaster Loan Program.
Now, if your business existed on Jan. 31 and you are a small-business owner with fewer than 500 employees, or if you’re an independent contractor, sole proprietor or any other eligible entity, you can get a loan for up to $2...
