There are some options for funding/ grants/ loans for small businesses out there. The SBA has 3 options. You can begin reading here.
The 2 main ones you have been hearing about are the EIDL Economic Injury Disaster Loan and the PPP Paycheck Protection Plan.
EIDL
The EIDL application is on the SBA website here https://covid19relief.sba.gov/ and is a streamlined application. This one you apply for directly with the SBA. People are starting to receive direct deposits from this. If you have your credit frozen that will delay funding.
The first round of funding for the EIDL will be $1,000 per employee. This is the round that the SBA is on now and businesses are reporting having received this. The SBA is funding in the order applications are received. They check your credit a day or two before the direct deposit hits. You can track this if you use a credit monitoring system.
Then next round will be a $15,000 loan for each business.
The third round, the real loan, will be based on 6 months of the business’s working capital.
PPP
The PPP Paycheck Protection Plan opened up about a week ago. This loan you apply for at a bank. Very few banks were ready when this program became available last Friday (April 3rd 2020) but more and more have developed an online application this last week. Most applications are based on the SBA PPP pdf application you can find here.
A small amount of businesses are reporting having received funding for this loan as of yet. There are some reports of smaller local banks and credit unions funding faster, but not enough data is available to confirm this.
Choose a bank, the SBA has a search tool here. Complete their online application. They will most likely request some of the following documents from the business; Profit & Loss Report, Tax Forms (1120, 1065, or 1120S) and payroll forms (944, or 941, and 940 FUTA). The bank you choose may be able to give you an idea of how long it will take to get funding.
Get your applications in and follow the directions and wait. We are all on COVID-19 time now.
Sincerely,
