let’s talk: SBA RELIEF FUNDING
Good Morning!
Over the past week or so I have been doing research on various SBA grants and loans. I am by no means an expert on them but thought it may be helpful to share what I have found, and what we personally applied for.
So, as we do, let’s talk Real Estate, let’s talk SBA DISASTER RELIEF FUNDING…
The Small Business Administration has narrowed their relief options down to 4 main funding programs.
(1) Paycheck Protection Program
This funding option incentivizes businesses to keep their employees on payroll.
“SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
You can apply 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.
Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.”
Key Takeaways: Programgeared towards keeping people employed, you do not have to pay back the loan if 75% of the loan is used to keep employees on payroll
(2) EIDL Loan Advance
“In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.”
Key Takeaways: EIDLup to $10,000 max, and you do not have to repay this loan. This is what myself, as well as several other smaller landlords applied for. I will give you all an update on how it pans out!
(3) SBA Express Bridge Loans
“Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans 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 an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.”
Key Takeaways: up to $25,000 max, must have relationship with SBA lender already, quick turnaround, must be repaid BUT it looks like you can use the EIDL to help repay this.
(4) SBA Debt Relief
“As part of SBA’s debt relief efforts,
The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.”
Key Takeaways: SBA is working to help small business defer their current loan payments if they fall within the above guidelines
It is important to note that guidance on which loan to apply for and how to apply is changing daily. We did what we thought was best for our business and will continue to apply for more relief options if need be. For all of you other small business owners on here, are you applying for relief funding? Which program suits your business best? Have any of your loan requests been funded yet? I know this is a very personal thing to go through for every business and if you do not feel comfortable talking about it, I am with you and totally get it. But for those who have made it through to the other side of this process, we would love to hear your insight!
To end on a happy & charitable note. I have included a link to this week’s Some Good News by John Krasinski, as well as a list of a few organizations that are accepting donations during these hard times.
Some Good News
Charities That Need Our Help
Feeding America
“This organization helps feed communities and individuals facing hunger across the United States through a nationwide network of food banks.”
No Kid Hungry
“With coronavirus forcing mass school closures across the country, millions of children are losing the daily meals they depend on. No Kid Hungry uses donations to send emergency grants to food banks and local community groups. It diverts resources to feed kids in the hardest-hit communities. The organization also has plans in place to ensure families know how to find food while schools are closed and making sure kids get three meals a day.”
Meals on Wheels
“This organization delivers meals to the country’s elderly population. Many of its local programs are struggling with the additional costs of delivering meals during the outbreak.”
The CDC Foundation
“This nonprofit organization for the CDC is raising funds to help respond to the public health threat when federal and state funding is not available. The foundation said it will use the funds to support state and local health departments in the US as well as support the global response including logistics, personal protective equipment, and critical response supplies.”
The American Red Cross
“As the number of coronavirus cases increases in the US, the number of people eligible to give blood and platelets for patients in need could decrease further, the Red Cross said. The organization is urging all eligible, healthy donors to donate blood and platelets to help maintain a sufficient blood supply flow and avoid potential shortages.”
Happy Wednesday! & Stay Healthy!
Erin
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All data and information provided in this email is for informational purposes only. This email makes no representations as to accuracy, completeness, suitability, or validity of any information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.
OpinIons stated here are my own and not the views of eXp Realty.
Data Sources for Today’s Content:
Me – this is based on my own personal experience!
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
