With Round 2 of the Paycheck Protection Program (PPP) looking to be about ready to begin, businesses that missed the first round will have a second chance to take advantage of the popular relief package. If you’re an individual with self-employment income, you can qualify for a PPP Loan if you meet certain criteria.
Business Loans Blog Posts | Page 9
The Second Round Of Paycheck Protection Program (PPP) Funding Has Been Announced [UPDATE: It’s Passed]
Small business owners and the self-employed have faced particular challenges and frustrations, as many were unable to get a PPP Loan during the last round of funding despite applying as soon as the funds became available. The good news is that on April 21, 2020, the US Senate passed a bill authorizing the addition of $310 billion to the Paycheck Protection Program (PPP), which offers forgivable loans to businesses affected by the devastating COVID-19 outbreak. Just know that once it’s signed into law, it might be another day or so before the SBA can reopen the program to new applicants.
In response to the woes facing the economy, the US government has allocated funds to help support businesses throughout the country by enacting the $2 trillion CARES Act. One of the programs for small businesses affected by this act is the Economic Injury Disaster Loan (EIDL) program. Thankfully, at least part of the money involved with an EIDL may not need to be repaid. Read through for the full details on how you can receive forgiveness on your EIDL emergency advance.
As part of the CARES (Coronavirus Aid Relief and Economic Security) Act, the Federal government gave the EIDL program a boost, which included $10 billion for $10,000 advances/grants given to small businesses impacted by the Coronavirus pandemic. In a pre-COVID world, the process was remarkably fast. However, we are not in a pre-COVID world, and there is no concrete answer here. Now, more than ever, it’s essential to know what documents are needed to apply for disaster loans and to have those resources readily available. Also, be prepared to wait, as the SBA states that applications might take up to four weeks.
If you own a small business and have employees on your payroll, the PPP loan may benefit you. Keep reading to learn more about this program, how to know if you qualify, and how to navigate the application process with ease.
What Is IntraLinks & Is It Safe? What Businesses Need To Know About Bank Of America’s Loan Servicing Partner
Bank of America is one of the largest and most omnipresent lending institutions in the country, so it’s no surprise that many small businesses seeking relief through the Paycheck Protection Program (PPP) during the COVID-19 crisis are applying through the bank. Applicants expecting to only have to deal with Bank of America infrastructure are, however, running into unfamiliar software provided by one of its partners, IntraLinks.
The EIDL program is reserved for small business owners that have faced financial hardship as a result of a disaster. Because President Donald Trump declared a national disaster as a result of the coronavirus, many small business owners will now qualify for this funding to keep their businesses afloat. If your business has been impacted by the coronavirus, keep reading to learn more about how to apply for these low-cost loans so you can get the financial relief you need.
Many small business owners facing financial challenges have applied for the EIDL program. As with other SBA loans, the EIDL program isn’t exactly the fastest source of funding. The addition of the CARES Act and expedited processing of loans has made it possible to receive funds faster than ever, but many business owners are still in the dark about when funding will come through.
It took less than two weeks for the funds approved for small businesses through the CARES (Coronavirus Aid Relief & Economic Security) Act to run dry and for banks and lenders to close applications. Experts warned from the start that the money would not go far compared to the magnitude of the need, and that prediction rang true. With the country shuttered and the majority of states under stay-at-home orders with essential businesses closed for the foreseeable future, stress is mounting. Talks are already underway about a continuation of funding in an effort to halt the catastrophic economic impact of the Coronavirus pandemic, but at the moment the loans are on pause.
Economic Injury Disaster (EIDL) Loans VS Paycheck Protection Program (PPP) Loans: What’s The Difference?
Wondering what the difference is between EIDL and PPP loans? Or need help deciding which (or both) type of SBA coronavirus loan your business should apply for? Read on to compare/contrast these two different Small Business Administration loans for small business coronavirus relief and decide which is better for your needs so you can apply for it.