Gress Income Tax Service

COVID-19 SBA Grant/Loan

https://www.sba.gov/page/disaster-loan-applications   Click the link to COVID on the top of the page in yellow bar.  

Borrowers can receive $10,000 in an emergency grant cash advance that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue loss.   You may have to pay this back.  

It expands access to sole proprietors or independent contractors, as well as tribal businesses, cooperatives, and ESOPs with fewer than 500 employees and all non-profits including 501(c)(6)s. 

The $10,000 emergency cash grants are particularly interesting. As Mr. Contreras explained it, applicants can get the emergency cash even if they don’t qualify for additional funds. Because lending decisions are based on self-certification and the applicant’s credit score, the review process should go quickly. CARES also waives the requirement that you be unable to obtain credit elsewhere. That means you can apply even if you already have a credit line.

You apply for these loans directly through the SBA at  https://www.sba.gov/disaster-assistance/coronavirus-covid-19 There are no loan fees, guarantee fees or prepayment fees. As of March 30, the new streamlined online application is up and running. Make sure to apply for Economic Injury for the Coronavirus, rather than physical damage due to another disaster (that is a different declaration number).

Paycheck Protection Program loans

Applications for Paycheck Protection Program loans available to businesses and sole proprietorships (with employees) who are impacted by COVID-19 will open on Friday, April 3. The portion of the loans used to cover payroll costs, mortgage/rent, and utilities may be forgiven.

The loans are on a first-come, first-serve basis.

Applications should be made through a local bank. More information is available at:

http://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp