The CARES Act has been passed by Congress and signed by President Trump. With the signing of this Act into law, we now have an additional economic disaster loan program available to small businesses. Managed under SBA 7(a) loan program, this new Business Loan Program will:
- Be for businesses that were in business on February 15, 2020 and had/have employees with payroll
- Waive borrower and lender fees
- Increase government guarantees up to 100% through December 31, 2020
For financial institutions participating in this program and more information, I suggest visiting Bankrate.com’s website for an updated list.
UPDATE – SBA Economic Injury Disaster Loan (EDIL) Program
We have an update relating to the EDIL Program rolled out on March 18, 2020. A few days ago the website that was made available for this type of loan was taken down for “maintenance” and has now been replaced with a two-page application. This application can be downloaded, completed and then uploaded to the SBA within 15-30 minutes.
This process is easier, fewer forms and the response time is much faster than before. While some may not like having to download a form, those that have already gone through the process will agree they wish this was available when they applied. For those wanting to apply, her is the link for SBA Disaster Loan Assistance.
- One comment regarding both of these loans, authorities are suggesting that if you qualify for both loans then apply for both loans and do so as soon as possible.
We will be monitoring this throughout the following days/weeks and when we receive verifiable guidance, we will update you accordingly. Should you have questions, please contact us. If we don’t know the answer, we will find it!