Important Small Business Resource Updates for April 1, 2020
As our community, state and region continue to mobilize to provide resources and hope as we all endure COVID-19 together, the EDC is pleased to send out the latest information we have on how the CARES Act can deliver important help now to businesses and their employees in St. Charles County, Missouri.
Please see these important updates as of the morning of April 1, 2020 --- and please continue to follow our website, Facebook and LinkedIn pages and Twitter account.
Six-month loan deferrals for 504 borrowers starting April 1, 2020
Under the CARES Act, 504 borrowers are relieved of any obligation to pay the principal, interest and any associated fees that are owed on a 504 loan in a regular servicing status for a 6-month period beginning with payment due on a loan starting April, 1, 2020.
These 504 payments will be made on their behalf by the U.S. Small Business Administration (SBA).
Six-month loan deferrals for 7(a) borrowers starting March 27, 2020
Under the CARES Act, 7(a) borrowers are relieved of any obligation to pay the principal, interest and any associated fees that are owed on a 7(a) loan in a regular servicing status (including Community Advantage loans) for a 6-month period beginning with the first payment due on a loan after March 27, 2020.
These 7(a) payments will be made on their behalf by the U.S. Small Business Administration (SBA).
Paycheck Protection Program (PPP) offers 8 weeks of forgivable loan payroll assistance to save jobs
Under the CARES Act, small businesses with 500 or fewer employees can start being submitting applications as of April 3, 2020, to participate in the Paycheck Protection Program (PPP) available from the U.S. Small Business Administration (SBA).
While limited funds last, the PPP can provide up to 8-weeks of funding in the form of loans that will be fully forgiven when used for payroll costs and benefits, interest on mortgages, rent and utilities.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.
Eligible employers are those with 500 or fewer employees, including nonprofits, veterans’ organizations, tribal concerns, self-employed individuals, sole proprietorships and independent contractors.
$10,000 forgivable advance offered to businesses who apply for an SBA Economic Injury Disaster Loan (EIDL)
Under the CARES Act, the Economic Injury Disaster Loan (EIDL) from the U.S. Small Business Administration (SBA) now offers a $10,000 advance to be paid within three days of online application submission, whether your business is eventually approved or not for an SBA EIDL.
The goal is to provide working capital to businesses experiencing temporary loss of revenues due to COVID-19. Businesses are urged to apply now for an EIDL and the $10,000 advance.
We want to stress again to our borrowers and friends in the business community, the time to act is now, so please apply as quickly as possible for these resourceful CARES Act programs available from the U.S. Small Business Administration.
If you have any questions along the way, please contact us at the EDC and we will help you to the best of our ability.
Working together we are St. Charles County STRONG!
Scott J. Drachnik
CEO & President
SVP of Business Financing
Assistant Vice President
Director of Small Business Development Center (SBDC)