The U.S. Chamber of Commerce has put together a breakdown of all the federal programs and aid for small business Corona virus assistance.
Three separate packages approved by Congress and signed by the President. Here’s a breakdown of what’s in those packages and how your business can take advantage of these relief efforts.
Corona virus Preparedness and Response Supplemental Appropriations Act
Signed into law on March 6, The Coronavirus Preparedness and Response Supplemental Appropriations Act provides $8.3 billion in emergency funding for federal agencies to respond to the coronavirus outbreak, enabling the U.S. Small Business Administration to offer $7 billion in disaster assistance loans to small businesses impacted by COVID-19.
What does it mean for small business?
1. The SBA is offering designated states and territories low-interest federal disaster loans to small businesses suffering substantial economic harm as a result of the corona virus.
2. These loans may be used by small businesses to pay fixed debts, payroll, accounts payable and additional bills that can’t be paid because of COVID-19’s impact. The interest rate is 3.75% for small businesses without other available means of credit. The interest rate for non-profits is 2.75%. Businesses with credit available elsewhere are not eligible.
3. The SBA loans come with long-term repayments, up to a maximum of 30 years, in an effort to keep payments affordable. Loan terms are determined on a case-by-case basis, according to individual borrower’s ability to repay.
4. The SBA has amended its disaster loan criteria to help borrowers still paying back SBA loans from previous disasters. By making this change, deferments through December 31, 2020, will be automatic. Hence, borrowers of home and business disaster loans do not have to contact SBA to request deferment.
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