COVID-19 Government Relief Programs

In response to COVID-19, sweeping new legislation was introduced to aid businesses and individuals. The purpose of this legislation is to prevent the COVID-19 pandemic from causing an economic crisis. The following is a list of programs available along with summarized details of what they entail, including how to apply. As additional programs are developed, we will update this article accordingly. 

United States Small Business Administration (SBA) Programs

Paycheck Protection Program

What it is

A loan designed to provide a direct incentive for small businesses to keep their workers on their payroll. Get up to $349 billion toward job retention and certain other expenses. Eligible recipients may qualify for a loan up to $10 million determined by eight weeks of prior average payroll plus an additional 25% of that amount. 

Loan payments will be deferred for six months. If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll and certain other expenses following loan origination.

Who Can Benefit

  • Small businesses with less than 500 employees
  • Eligible nonprofit organizations
  • Veterans organizations
  • Tribal businesses described in the Small Business Act
  • Individuals who are self-employed or are independent contractors (if they also meet program size standards)
  • Millions of Americans employed by small businesses

How to Apply

Your application can be submitted through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.

Economic Injury Disaster Loans and Loan Advance

What it is

A working capital loan advance in the amount of up to $10,000 that provides economic relief to businesses that are currently experiencing a temporary loss of revenue.

Who Can Benefit

Small businesses located in the United States, Washington DC, and territories with working capital loans of up to $2 million.

How to Apply

Fill out this application.

SBA Debt Relief

What it is

A program that will provide a reprieve to small businesses as they overcome the challenges created by COVID-19. 

Under this program:

  • The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
  • The SBA will pay the principal and interest of current 7(a) loans for a period of six months.

Who Benefits

Small businesses.

How to Apply

Debt relief is automatic and the SBA is required to make payments within 30 days of the date on which the first payment is due.

SBA Express Bridge Loans

What it is

Loans that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. 

If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.

Who Benefits

Small businesses that currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork.

How to Apply

Fill out your application on the SBA’s website.

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For additional information on each SBA program available, visit the SBA’s website.

Credit: The information above was pulled directly from the SBA’s website and edited for clarity and readability where applicable. 

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Coronavirus Aid, Relief, and Economic Security Act (CARES Act)

Forbes highlights the CARES Act (“a legislation aimed at providing relief for individuals and businesses that have been negatively impacted by the coronavirus outbreak”) which includes but is not limited to information on:

  • Direct payments 
  • Unemployment
  • 401K loans
  • RMDs suspended
  • Charity
  • Small business relief
  • Net operating losses
  • Excess loss limitations
  • Interest expense limitation
  • Large corporations
  • Hospitals and health care
  • Coronavirus testing
  • States and local governments
  • Agriculture

In short: the CARES Act will help mitigate the impact COVID-19 has on businesses.

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What can our payment technology and card processing company do to help your business? Contact us for information on how we can save your business money on card processing, provide merchant cash advances, and more. 

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