ALERT: Applications Open for New SBA COVID-19 Disaster Loan Assistance under the CARES Act
Following the enactment of the CARES Act this past Friday, it was anticipated that the U.S. Small Business Association (“SBA”) would develop a streamlined application process to enable small businesses to apply online and expedite payments for approved loans under the new COVID-19 Economic Injury Disaster Loan program.
We are writing to alert you that the SBA has now activated its online website for this streamlined loan application. The SBA estimates that this online application will take approximately 2 hours and 10 minutes to complete. We think it will take less time than that, particularly where your business has normal bookkeeping/accounting practices.
The SBA’s COVID-19 Economic Injury Disaster Loan is designed to provide small businesses with working capital of up to 10 million dollars to help America’s small businesses overcome the temporary loss of revenues that many are experiencing due to current nationwide COVID-19 mitigation measures. In some cases, a loan advance may be available on an expedited basis once the application has been accepted. Perhaps the best part of this new program is that the loans do not require collateral or guarantees and are potentially forgivable up to 100% of the principal amount borrowed if your business meets certain criteria such as employee retention and wage/salary stabilization.
Please note that we have received (unofficial) information indicating that the SBA will be processing new loan applications under this program on a first-come, first-serve basis, so if you are inclined to apply, do not dally!
The SBA’s streamlined application may be accessed and completed online by using the following link:
Our team remains committed to helping our clients and our community weather this storm and will be providing periodic information updates, suggestions, and additional links to potential resources in the coming days.