Around the Wash: PANDEMIC COVERAGE Where’s the Money? If you feel like you’re floating out to sea, lost in a fog with money worries, and Covid-based nightmares, there are lifelines available, both financial and advisory, for small businesses. But with so many different platforms, and deadlines, and red tape, it can be challenging to know what opportunities are right for you and your business. Here is a breakdown of the various funding options, offered by the Small Business Administration (SBA). EIDL = Economic Injury Disaster Loans: On June 15, the Small Business Administration resumed accepting new EIDL applications from all eligible small businesses. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation to health care benefits, rent, utilities, and fixed debt payments. Small business owners and qualified agricultural businesses in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19). As of July 15, 2020, 2,622,203 loans have been approved across the United States totaling $150,177,958,290. Each applicant must review and check all the following (If Applicant is unable to check all of the following, applicant is not an eligible entity): • Applicant is not engaged in any illegal activity (as defined by Federal guidelines). • No principal of the Applicant with a 50 percent or greater ownership interest is more than sixty (60) days delinquent on child support obligations. • Applicant does not present live performances of a prurient sexual nature or derive directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature. • Applicant does not derive more than one-third of gross annual revenue from legal gambling activities. • Applicant is not in the business of lobbying. • Applicant cannot be a state, local, or municipal government entity and cannot be a member of Congress. PPP = Payroll Protection Program: An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. The SBA reopened this program in July, but the deadline for new application is August 8, 2020. Therefore, depending on the date of this publication, it might be too late. As of July 27, 2020, 5,017,603 loans have been approved equaling $519,770,805,963. The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. You can apply through any existing SBA 7(a) lender or through any federally insured deposito- 38 • SUMMER 2020
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