Getting right to the point.
SBA Disaster Relief Loan (EIDL) – Apply through SBA Website
Loans up to the lesser of 12 months expenses or $2 million. 3.75% interest rate, no fees, up to 30 year terms
No loan forgiveness
Any business that has been negatively impacted can apply
Expected processing time: 3-4 weeks
You can request an immediate $10,000 advance once you apply, payable within 3 days
CARES Act – Paycheck Protection Program (PPP) – Apply through your local SBA Lendor Bank
Loans up to the lesser of 2.5x average monthly payroll expenses or $10 million. Up to 4% interest, no fees, 10 year term
No payments due for a minimum of 6 months
Entire principal can be forgiven if employee counts are maintained
(Must keep same number of full time equivalent employees for 8 weeks after
Any business can apply with 500 or fewer employees
SBA says you get one loan or the other, not both. So, choose wisely grasshopper.
In these trying times, sometimes it helps to put things into perspective.
1-There is a final date when your business will begin to come out of this…April 16th. If the date gets bumped an extra week or two, you can still see the beginning of the end in sight. It is NOT unknown or indefinite.
2-In business, we suffer downturns, unexpected problems occur, projections fall short. What do business owners always do? They adapt. They change. They figure out a way to survive. It’s what makes US small business owners the BEST in the world. We’re not the quitters. We’re the fighters. We’re not part of the panic driven, we’re the elite who calmly keep our heads and find solutions.
3-The fundamentals for a strong economy are still there. It’s like we put a hold button on some activities. Others have gone on without interruptions. Construction (of all kinds). Manufacturing. Shipping, trucking, warehouse operations. Farming. Ranching. Mining. Most professional services. Etc. Remember, when we have 30% unemployment that means 70% are still working, earning money and have not been spending much of it. (Except on toilet paper?) When the temporarily shut down of our entertainment industry gets turned back on, folks will have money to spend and a need to get out of their houses. There’s a good chance that, even though being careful not to be in too large a crowd, folks will still get out as soon as they can.
4-Despite the problems caused by Obamacare, our Healthcare industry in America is still the best in the world. That includes research and development. Cures will be found. The FDA has been instructed by President to “get out of the way” and get potential treatments fast-tracked. There’s a VERY good chance that this will fade from our country’s collective “fear” zone in a matter of months.
5-More and more evidence is coming to light that the economic shutdowns were not necessary. It’s becoming more obvious that the sources of all the death projections are the same “scientists” who created the crazy Global Warming predictions. Their track record is QUITE POOR. There may end up being an obvious over-reaction by our Governor and others to use such drastic measures.
6-The businesses most hurt by this temporary shutdown are going to survive now with the SBA loans out there to help them get back on their feet. Their employees now getting boosted unemployment payments and the special IRS checks will make this much less of a terrible economic disaster for them and more in line of a survivable hiccup in their year.
We’re Americans and we will survive! We will get through this and be stronger than we were before. Hopefully one side benefit will be less bickering and partisanship and more working together for the common good.
My dad burned into me the optimistic approach to life. It has never failed me yet!
Have you heard? Jeremiah 29:11 says, “For I know the plans I have for you, declares the LORD, plans for welfare and not for evil, to give you a future and a hope.”
Kelly Bullis is a Certified Public Accountant in Carson City. Contact him at 882-4459. On the web at BullisAndCo.com Also on Facebook.