The federal Small Business Administration (SBA) is offering several coronavirus relief options to help alleviate the financial hardships resulting from the coronavirus (COVID-19).
Last Friday, the launch of the Paycheck Protection Program (PPP) provided hope for small business owners in need of assistance. Unfortunately, unclear/incomplete guidelines left many lenders unable to accept applications on opening day. And, borrowers, with unanswered questions, are trying to determine how to move forward in a manner most likely to conform to regulations that require further clarification. Despite the difficulties, the federal government has publicly committed to fixing the glitches. Late Monday night, the SBA released FAQs that add clarity. The document will be updated regularly.
In addition to traditional SBA funding programs, and the newly-established Paycheck Protection Program, the CARES Act also established other new temporary programs to address the COVID-19 outbreak, including:
- The Economic Injury Disaster Loan (EIDL) Emergency Advance provides up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.
- SBA Express Bridge Loans, which can be used to bridge the gap for businesses while applying for a direct SBA Economic Injury Disaster Loan; small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
- SBA Debt Relief, which provides a financial reprieve to small businesses during the COVID-19 pandemic.
As many small business owners and sole proprietors in rural California work tirelessly to navigate the complexities of the moment, communities are coming together to find creative solutions to face the challenge. Farms are banding together to offer drive-thru produce pick-up for residents while fewer restaurants are open for business. Wineries are offering virtual wine tastings for residents who order tasting kits online. And, local specialty shops are providing remote ordering and home delivery on bicycles. The approach businesses are taking to get through these unprecedented times are as unique and varied as the individuals who run them.