On March 25, 2020, Congress and the President of the United States enacted an unprecedented relief package (The CARES Act) in response to COVID-19 and the Coronavirus impact on small business owners across the country.
For small business owners (businesses with fewer than 500 employees), the relief funds come through the SBA (Small Business Administration) via loans and grants.
It is important to note, depending on your eligibility, much of the loans provided are forgivable and converted into grants. Equally important is if this debt is forgiven, the money is also considered tax-free!
The first step in the process, is to start the SBA Loan Application.
During this process you will be asked whether you would like to be considered for an Economic Injury Disaster Loan advance of up to $10,000. In the event you do not qualify for the loan, the $10,000 is forgiven and does not have to be paid back. The debt is forgiven without any negative consequences to your credit.
These are unprecedented times, which is why this government offer is real.
How Can I Apply for EIDLs?
Who is Eligible for a COVID-19 Economic Injury Disaster Loan With the SBA?
In general, an applicant must be a business with less than 500 employees (exceptions exist-see the SBA website for further details). In addition, all applicants must say “Yes” to all the following to be eligible for this loan and disaster relief program:
The Covid-19 Economic Injury Disaster Loan Application Form
In addition to the basic information about your business (business name, address, etc..), most businesses will need to provide the following information:
In the Additional Information section, you will have to promise that you have not been in trouble with the Federal government and that you don’t engage in certain “obscene” activities. In this section, there is also a section that allows for the information of a third party assisting you including a disclosure of any fees you may have paid to that third party for assistance in completing this form.
A Free, Emergency $10,000 in the EIDL Application
At the end of the EIDL application, the form asks whether you’d like to be considered for an advance of up to $10,000. It works so quickly, that the form allows you to provide your banking information right there so that the SBA get can funds to you ASAP.
At the end of the application, you’ll be presented with a review of all the information you provided before you swear under penalty of perjury that all the information you provided is true.
Paycheck Protection Program
For small business owners who have employees, we wanted to direct your attention to the most important feature which is the Paycheck Protection Program.
If you are a small business that employs 500 employees or fewer, or certain other eligible large organizations, you are eligible for a loan under what is called the Paycheck Protection Program.
Note: Sole proprietors, independent contractors, gig economy workers, and self-employed individuals are also all eligible and can qualify for this relief program.
Important Paycheck Protection Program Details
How Can I Apply for the Paycheck Protection Program?
Additional Resources and Links
Have Questions or Need Help?
We know this can be a stressful time and all this information can be a little overwhelming. The LAVASSANI team is here to help answer your questions.
Please contact us at 1-888-Lavassani | 1-888-528-2772 and we are happy to help you with any concerns.