04/03/2020
Greetings Folks!
The Paycheck Protection Program has been made available as of last night at 8pm by the SBA.
Up to $10 million, Paycheck Protection Program:
• The portion of your loan request that is used for payroll, mortgage interest payments, covered rent payments and utilities is 100% forgivable and not more than 25% of the forgiven amount may be for non-payroll cost. (the majority of what you are requesting should be to keep the same number of employees you had prior to COVID-19 disruption)
• 500 or fewer employees
• Fixed 4% for the non-forgiving portion, no collateral required
• No payment for the first 6 months to a year
This is a paper application and needs to have the OMB Control No: 3245-0407. (There are scammers so make sure!) You must fill out this application and MUST work with an SBA approved lender to receive the funds. You can locate the application here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp
But what about the $10K Advance?
You can apply for the $10K Advance and the Paycheck Protection Program loan. The $10K advance is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organizations or 501(c)(19) veterans organizations affected by COVID-19.
Funds will be made available within days of a successful application, and this loan will not have to be repaid. Lenders may begin processing loan applications as soon as April 3, 2020
To review all the different relief options by the Federal government, go here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
BUT IF YOU NEED MONEY NOW:
There are still state and private loan options if you need funds faster. Remember the government can be a little slow, so if you are in a real bind I recommend contacting credit unions, and any micro-lenders to get faster funds until the SBA ones are released. Then use those funds to pay it back.
SECURE HELP
Most importantly, if you are getting any of these funds. Secure two things or get a better relationship with a bookkeeper/accountant or CPA and a business coach. to make sure you are making the right decisions with the money and are tracking these dollars so you can comply with ALL the terms. Don't let 2021 come around and you are facing fines and have mounting debt.
For those who are not aware, besides the work I do with Black Professionals Network, I serve as a Business Development Consultant at the Minority Business Development Agency, a program under the U.S. Commerce and operated by FSMSDC. Should you need assistance in going over any of these options, you can schedule a session with a consultant in Orlando or Miami https://www.mbdamiamicenter.com/ or https://mbdaorlandocenter.com/
We’re here to help you overcome the challenges created by this health crisis. We offer multiple funding options for those seeking relief. Read more below.
