How can small businesses use stimulus packages to weather the economic impact of coronavirus?
Answered by:
Small Businesses can apply for the Paycheck Protection Program thru the Small Business Administration to cover payroll, rent, and utilities. If the proceeds are used for these items, the Business may qualify for loan forgiveness for 2.5 months of these set costs. First day to apply is tomorrow, Friday April 3rd. This is too good an opportunity to not take advantage of!
4 Replies
Victoria Vastalo
from Bottom Line Consulting Midwest
how is this different than the Economic Injury Disaster Loan of up to 10K?
Margaret Oliger
from Level Up Solutions LLC
This loan can be forgiven if you use the money and maintain payroll. If after 6 months you can show you maintained payroll, paid rent and utilities, the loan may be forgiven in total or in part.
There is no collateral requirement or personal guarantee either.
Steven Gross
from Ameriprise Financial
My understanding is if you apply for both, the government will net out the 10K from the Economic Injury Disaster Loan. Still no reason to apply for both. If you end up taking a loan for more than 2.5 months of payroll, rent and utilities expenses, the loan converts to a very low interest loan that is payable over 10 years. Still more attractive than borrowing money else. You can always pay it back with no penalties.
Lorenda Christensen
from Berryhill Consulting LLC
You can't actually take out BOTH and EIDL and a PPP loan at the same time, but you can get the EIDL (since it's available now), and then refinance/roll it into a PPP when your PPP application is approved.
Kimberly Erick
from Home Time Business Services LLC
Incorrect, the PPP is applied for through your financial institution