If you’re a small business owner, you might be feeling the economic impacts of the COVID-19 pandemic. The government wants to help.
Before we get into the options, we should mention that the funding for some programs has already run out. And the Small Business Administration says it can’t accept new applications. Congress has been discussing how to offer more aid. But lawmakers haven’t been able to agree on a deal. If they do eventually figure this out, here are the programs you should know about…
Paycheck Protection Program. You’d apply for this through a bank or other lender. If you’re approved, you’ll get a loan to use toward keeping your employees on payroll. You can also use it for things like rent and utilities. You could get up to $10 million in aid – plus if you meet certain conditions, the feds will forgive the loan. You can also apply for this if you’re an independent contractor or self-employed.
Economic Injury Disaster Loan program. It has two parts. First, small businesses can get an advance of up to $10,000 that you don’t have to pay back. But the program also includes low-interest loans to help cover the costs of running your business. This part you’ll have to pay back.
Can I apply for both?
Yup. But keep in mind that there are restrictions when it comes to how you use the money for each of them.
A lot of businesses have been putting up ‘closed’ signs, and that’s had a ripple effect on the economy. If you’re a small business owner, check out covid19relief.sba.gov to learn more about government programs that may help you out.
Subscribe to Skimm Money
Your source for the biggest financial headlines and trends, and how they affect your wallet.