For businesses that “exist” but may not have been open at the start of the state of emergency due to the Coronavirus pandemic due to the regular pattern of seasonal operation , you may still qualify for the recovery loans created by the CARES Act. While you were not specifically providing a service, you were likely preparing to open, taking reservations, etc. The state’s office of Economic Development and Housing is encouraging you to apply, and the earlier the betters, as programs are on a first in, first out basis.
The following update is from the Executive Office of Economic Development & Housing:
The recently approved Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act has directed the U.S. Small Business Administration (SBA) District Office to implement resources for small businesses, as well as non-profits and other employers. They have released the Small Business Owner’s Guide to the CARES Act which includes answers to FAQ’s that I’m sure many of you have.
We’ve been hearing from many businesses that were looking for resources other than loans. I know you are receiving many links, and it can be overwhelming, but consider this SBA CARES ACT Guide the Cliff Notes version; it’s worth reading.
Struggling to get started? The following questions might help point you in the right direction. Do you need:
• Capital to cover the cost of retaining employees? SBA and Treasury Department will launch the new Paycheck Protection Program to help keep employees on payroll and small businesses operating by the end of the week. If employers maintain their payroll, the loans would be forgiven , which would help workers remain employed, as well as help affected small businesses and our economy snap-back quicker after the crisis. PPP has a host of attractive features, such as forgiveness of up to 8 weeks of payroll based on employee retention and salary levels, no SBA fees, and at least six months of deferral with maximum deferrals of up to a year. Speak with an SBA lender about this program, a lender list can be found on our website at: www.sba.gov/MA These funds can be accessed directly from a bank you probably have an existing relationship with. We will have more details on this at the end of the week. THIS IS THE ONE YOU HAVE BEEN HEARING IN THE NEWS ABOUT.
• A quick infusion of a smaller amount of cash to cover you right now or a low interest loan? You might want to look into an Emergency Economic Injury Grant/Economic Injury Disaster Loan . The low interest, long term “Economic Injury Disaster Loan” offers up to $2 million. The first payment is deferred for 12 months. The application has been simplified and can be completed 100% online through the SBA improved web portal at https://covid19relief.sba.gov/#/ IF you apply for that Disaster Loan above – you can ask for an “ Economic Injury Disaster Loan Advance” for UP TO $10,000 as part of the loan application. If approved, these funds can be used for payroll and other operating expenses and can be FORGIVEN.
• To ease your fears about keeping up with payments on your current or potential SBA loan? The Small Business Debt Relief Program could help.
• Just some quality, free counseling to help you navigate this uncertain economic time? The resource partners might be your best bet.