As we continue to weather the COVID-19 pandemic, the disruptions to our businesses and economy keep expanding. Even with states beginning to reopen, capacities are limited, so while it’s a good step, it still isn’t business as usual. As a result, the risk of economic hardship for small businesses continues to increase.
In response to these risks, the government created the CARES Act to provide more than $300 billion in relief money for small businesses and workers in the United States. This came with additional unemployment benefits, stimulus checks, and funding options for small businesses.
SBA Express Bridge Loans
This one benefits small businesses that currently have a relationship with an SBA Express Lender. As a result, they can borrow up the $25,000 and receive the money promptly to cover immediate costs. It is helpful for a sudden loss of revenue or to help a business while they apply for an Economic Injury Disaster Loan.
Economic Injury Disaster Loan
Similar to the Express Bridge Loan, the Economic Injury Disaster Loan, or EIDL, is designed to help a small business or non-profit overcome a temporary loss of revenue. Ways to use the proceeds from the loan include covering rent, operating expenses, healthcare benefits, utilities, and more.
SBA Debt Relief
This program moves away from a loan and instead provides a reprieve to small businesses in debt during COVID-19. How it works is the U.S. Small Business Administration (SBA) will pay balances on Microloans, 7(a), and 504 loans that are new and currently in regular servicing status for six months. The payments will cover all fees, including interest and principal. Unlike the loans, this is automatically applied and does not need to be requested.
Paycheck Protection Program
Another loan, the Paycheck Protection Program, or PPP, was created to help businesses keep their teams employed throughout the pandemic. It serves as an incentive to not lay off, furlough, or terminate employees. If the loan terms are met through employee retention, then the loan will be forgiven.
Experience a higher level of control with Unemployment Tracker
An average of 12% of all UI charges are overpaid, meaning you could be paying unemployment claims that don’t qualify and increasing your tax rates. Fortunately, there’s a solution. Unemployment Tracker has a full range of solutions to meet your specific needs and budget, so you never miss a claim again. Request a live demo today to experience it for yourself.