COVID-19 Relief and Assistance - Businesses
BUSINESS ASSISTANCE
The SBA has compiled a detailed summary of available resources for small businesses. Please click here for a summary from the Small Business Administration (SBA) regarding the Paycheck Protection Program, Economic Injury Disaster Loans and Loan Advance, and other assistance.
The following is a summary of the assistance available to businesses related to COVID-19 compiled from various sources.
Economic Injury Disaster Loans
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
To apply for a COVID-19 Economic Injury Disaster Loan, click here. If you need any assistance with this application, please reach out. I would love to assist you.
The Paycheck Protection Program (the following info comes from the American Society of CPAs):
The Department of Treasury has released the Paycheck Protection Program application and supplemental information, all available on their website.
Official documentation available include the following:
· The accompanying borrower guide
Please remember that funds from this program:
· Can be used for employee salaries under $100,000, paid sick or medical leave, insurance premiums, and mortgage, rent and utility payments;
· Are 100% forgivable if used for the above purposes; and
· Are available to businesses or 501(c)(3) nonprofits with less than 500 employees, including sole-proprietors, independent contractors, and other self-employed individuals.
Our SBA Lending Partner – Fidelity Bank
Fidelity Bank is a long-time SBA approved lender and has an in-house SBA representative.
Fidelity Bank is eager to start providing local businesses with the assistance they need thanks to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) that was recently signed into law! As you know, the Act is aimed at providing financial relief in response to the coronavirus (COVID-19) pandemic. One of the core pieces of the CARES Act is the provision of $349 billion for small businesses through federally backed loans under a modified and expanded Small Business Administration (SBA) 7(a) loan guaranty program called the Paycheck Protection Program (“PPP”). Congress has designed the program to make funds available to qualifying businesses starting April 3rd for small businesses and starting April 10th for independent contractors and self-employed individuals through approved banks like Fidelity Bank. For a more comprehensive resource CLICK HERE.
While the SBA has yet to release their final guidance on the PPP, clients interested in obtaining an PPP loan are encouraged to begin their submission with us online at https://sba.bankwithfidelity.com/. To make the process as simple, easy and fast as possible, please review the verification documents needed here.
FRAUD
Please be wary of any attempted fraud. This loan process will be initiated by you, not the other way around. If you suspect fraud, please feel free to reach out to me and reach out to Office of Inspector General via 800-767-0385 or HERE. You can also report to the FBI.
Assistance specific to Louisiana entities:
· Firms of fewer than 100 employees will be able to borrow up to $100,000 at below-market interest rates
· Loans designed to help small firms impacted by COVID-19 meet their payroll, retain employees, pay their rent and mortgages, and maintain operations
· No payments due or interests applied for the first 6 months. After 6 months, interest rates will be no higher than 3.5%
· Total loan pool of $50 million will be quickly disbursed to eligible small businesses across Louisiana
· Program will not compete with SBA loan programs
· More than 30 banks across Louisiana are currently participating
· Bankers will have the flexibility to extend loan terms for up to five years
· Lenders interested in participating should contact LED by emailing LEDSmallbizloans@la.gov
· View all details and participating banks on LED's website HERE.