At Forward Financing, we have always been in the business of helping our small business customers to thrive, even during difficult times. Today, the unprecedented circumstances presented by COVID-19 are challenging us all, particularly small business owners.
Congress has recently passed the CARES Act - legislation that includes nearly $360 billion in grants and loans directed at helping small businesses stay solvent and continue to make payroll. Below are 3 steps you can take today to qualify for funding from the CARES Act. Of course, you should contact a financial professional for help and see www.sba.gov for more information.
1) Apply for a $10,000 grant through the Economic Injury Disaster Loan (EIDL) program
The CARES Act authorized $10 billion to be distributed through this existing SBA program based on Coronavirus impact. As part of the online loan application, businesses can request a $10,000 advance that does not have to be repaid, and they need not be approved for an EIDL loan in order to receive this grant. The application process is simple and the money can be received in as little as 72 hours. To apply, go to:
2) Document your 2019 payroll expenses in order to qualify for a Payroll Protection Program (PPP) loan
The PPP is intended to provide 8 weeks of payroll coverage for small businesses. This money comes initially as a loan, and is forgiven once recipients can show that they used the money on eligible expenses (primarily payroll). In order for the loans to be fully forgiven, business owners need to maintain their payroll at historical levels - any layoffs or furloughs will reduce the amount eligible for forgiveness. Maximum loan amounts are equal to 2.5 times your average monthly payroll costs from 2019.
3) Complete the PPP loan application and contact your preferred SBA lender
It has been reported that these funds will go quickly and it is unknown whether Congress will authorize more in the coming months. So be sure to have your financial statements and payroll records ready, and watch your email for further information in the coming days on how Forward Financing can help refer you to a lender.