On April 16, the SBA announced it had exhausted its initial round of funds for the Paycheck Protection Program and will no longer take applications. While we remain hopeful for an additional round of funding as of this writing, we also are constantly monitoring for other options for our small business customers.
I highlighted a few loan and grant options in a prior piece. Here are some additional relief programs that may be of benefit to your small business.
SBA Express Bridge Loan
As I wrote last week, this emergency bridge loan for up to $25,000 can be used to bridge business expenses during the COVID-19 emergency or disaster declaration in your area. Bremer Bank is an SBA Preferred Lender and is ready to work with you on this program.
Save Small Business Grants
The U.S. Chamber of Commerce Foundation, along with several sponsoring organizations, will provide financial relief through the new Save Small Business Fund. This program offers up to $5,000 grants to provide short-term relief for employers across the country, helping to cover rent, payroll and business operating expenses. Applications are now being accepted at savesmallbusiness.com.
Employee Retention Tax Credit
As part of the CARES Act, a new Employee Retention Credit is designed to provide an incentive to organizations to keep employees on their payroll during COVID-19. Businesses and nonprofits that experienced a significant loss in revenue may be eligible for this tax credit if:
- Your nonprofit or business operations were fully or partially suspended because of a government-mandated COVID-19 shut-down order.
- Your nonprofit or business experienced a significant decline in gross receipts in a defined period of time.
- You did not receive a PPP loan.
Additional eligibility details and other details can be found on the IRS website.
SBA Debt Relief
The SBA is providing financial reprieve to businesses and organizations during the COVID-19 outbreak. As part of this debt relief, the SBA will automatically pay the principal, interest and fees of eligible 7(a), 504 and microloans for a period of six months. For eligibility details, visit the SBA website.