Congress has passed and President Trump has signed several laws intended to help small businesses with cashflow and liquidity issues caused by COVID-19.
NFIB experts have analyzed the federal lending programs established in response to COVID-19 to discover how our members may benefit from them. The laws contain many provisions that are specifically designed to help small business. The most important include:
In June, the Small Business Administration reopened the Economic Injury Disaster Loan program. Small business applicants from all industries may now immediately apply for assistance.
The announcement followed weeks of discussion between NFIB and SBA officials. While NFIB helped secure additional EIDL funding from Congress in March, SBA restricted the program to agricultural businesses starting on May 4. These restrictions have been lifted.
However, SBA announced July 11 that EIDL loan applications will continue to be processed, but the EIDL Advance Emergency Grants program has closed to new applicants, as the funding allocated for these grants has all been obligated. Apply for Economic Injury Disaster Loans here.
The centerpiece CARES Act program, PPP offers federally guaranteed loans include forgivable qualifying expenses for all small businesses and self-employed individuals.
The loans can be totally or partially forgiven for businesses that spend them on qualifying expenses including payroll, benefits, rent, mortgage interest, and utilities in an eight-week or 24-week time period after the loan’s issuance.
Learn more about the loan details in our side-by-side graphic detailing the EIDL program and Paycheck Protection Program.
Small businesses with non-disaster SBA loans can have their loan payments covered for six months. SBA has yet to issue guidance for this relief, although details are expected soon. NFIB will provide updates as available.
If you have any questions, please contact NFIB’s Small Business Legal Center at 800-552-NFIB (1-800-552-6342 ) or email [email protected]. And please visit NFIB’s coronavirus news hub for frequent updates.