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SBA COVID-19 Small Business Relief

March 27th, 2020

Created in 1953, the U.S. Small Business Administration (SBA) has set out to help small business owners and entrepreneurs pursue their dreams by providing counseling, capital, and contracting expertise. The SBA states they worked to ignite change and spark action so small businesses can confidently start, grow, expand, or recover.

During this time in our nation, they want to specifically focus on recovery. They have made available some great resources right now. In fact, they are pushing an option labeled Economic Injury Disaster Loan Program that fits most businesses needs in Mississippi. You can apply for these loans through their website to help you get through this season in your business. You can also work through your local bank that is a certified SBA bank to help.

The Senate passed an act called the CARES Act that will now go to the house on 3/27/20. If passed, the law allows the SBA to provide grants and 100% federally-backed loans to help qualified small businesses pay operational costs, such as payroll, rent/mortgage, utilities and health insurance premiums.  Any loans, or any portion thereof, that are used for certain purposes (i.e., covering payroll obligations) may be forgiven, but forgiveness amounts will be reduced for employee terminations or wage reductions.  Eligible businesses may access the program through private banking institutions already authorized to make SBA loans.  As the pool of funds are limited, it is critical for qualified small businesses to act quickly once the program goes into effect (date TBD).  More details on the expanded SBA loan program can be found under Title I of the CARES Act.

 

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