Businesses: Apply NOW for Disaster Loans
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April 8, 2020
AND THEN THERE WERE FIVE – Last week The Slider Café and Santo Coyote closed. Open are COA, Nell Thorn, Oyster & Thistle and Seeds. Once again the La Conner Tavern is open Fridays. The list of closed eateries is, sadly, much longer. – Photo by Ken Stern
Business owners, get online now and apply for federal funds now. All area businesses, self-employed persons and nonprofits are eligible.
The Weekly News has already applied for the Economic Injury Disaster Advance Loan. Run by the Small Business Administration, it provides up to $10,000 and becomes a grant: It does not have to be repaid when program requirments are met.
The SBA webpage reads:
“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.
“This 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. This loan advance will not have to be repaid.”
It took 15 minutes to apply. Needed are the legal business name, your EIN, Employer Identification Number, and your gross income and Cost of Goods Sold, COGS, for Jan. 31, 2019-Jan. 31, 2020. All website urls are below.
The Paycheck Protection Program is a second loan program from the CARES Act passed by Congress and signed by President Trump. It is a nearly $350-billion program intended to provide American small businesses with eight weeks of cash-flow assistance through 100 percent federally guaranteed loans.
This loan has a maturity of two years and an interest rate of 1%.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest or utilities. The loan covers expenses from Feb. 15-June 30, 2020. There is no cost to apply.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.
Apply through banks authorized to handle SBA loans. The website listed hundreds of nearby branches.
Download a four page form: There are two pages to fill out and two pages of instructions and conditions. Use Adobe Reader to type answers and for initials and signatures. It took 25 minutes to fill out. Needed are the business’ legal name, EIN and average monthly payroll numbers.
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