SPECIAL COVERAGE ON THE CORONAVIRUS
Applications Must be in by Tomorrow Under the SBA Disaster Loan Program
By Greg Lane, Hingham Current Staff, Posted: June 29, 2020
The Small Business Administration PPP loans are still available. The deadline for businesses to apply for Economic Injury Disaster Loans is tomorrow.
The 3.75 percent, potentially 30-year EIDL loans are deferrable for a year and can be used for debts, payroll, accounts payable, and other bills that cannot be paid due to the impact of the coronavirus.
In response to the Coronavirus (COVID-19) pandemic, small business owners are able to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue.
These PPP loans have relatively favorable terms for borrowers, according to South Shore Bank. And, in the event of bankruptcy, the loans can generally be discharged, they said. However, they encourage borrowers to monitor rule changes implemented by the SBA before submitting a forgiveness application.
The Paycheck Protection Program, created by the CARES Act legislation enacted in March, offers forgivable loans to small businesses. The disaster loan program existed before the pandemic. The CARES Act updated it to provide emergency grants of up to $10,000 to small businesses.
In an effort to assist small businesses and non-profits, the Federal Reserve Bank of Boston has created a web page with resources to aid them in applying to this program.
The resource page includes:
An info sheet describing the program
Links to other resources including program information and loan applications in 19 languages
A list of technical assistance providers indicating they are able to help small businesses/nonprofits apply for the PPP
A list of financial institutions that are able to process PPP loans for non-customers
You can visit the page here:
The Small Business Administration, which administers the loans, has approved nearly $630 billion in combined funding for businesses since the crisis began.