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COVID-19 Retail Relief Programs

Posted by Springboard Retail on Apr 1, 2020
Springboard Retail
Blog-COVID-19-Retail-Relief-Programs-Featured

The US Small Business Administration has shared these resources in an effort to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. We've broken down the federal relief programs most applicable to independent retailers.

Economic Injury Disaster Loans and Loan Advance

  • Small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
  • Funds will be made available within three days of a successful application.
  • This loan advance will not have to be repaid.
  • Apply here.

SBA Debt Release

  • Provides a reprieve to small businesses as they overcome the challenges created by COVID-19.
  • The SBA will pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
  • The SBA will pay the principal and interest of current 7(a) loans for a period of six months.
  • The deferment will NOT cancel any established Preauthorized Debit (PAD) or recurring payments on your loan.

SBA Express Bridge Loans

  • Allows small businesses to access up to $25,000 with less paperwork.
  • These loans can provide vital economic support to help overcome the temporary loss of revenue and can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan.
  • If you have an urgent need for cash while waiting for disbursement on Economic Injury Disaster Loan, you may qualify.
  • Must currently work with an Express Bridge Loan Lender. Find one by connecting with your local SBA District Office.
  • Learn more here.

Paycheck Protection Program

  • Businesses with 500 or fewer employees may apply.
  • Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
  • Borrowed money can be spent on "payroll costs" as defined as wages, rent, mortages, utilities, and interest on some loans.
  • Interest rate is 1%
  • Loan payments will be deferred for six months.
  • If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
  • Learn more here.
  • Apply here.

Selling in Canada? Click here for Canada's COVID-19 Economic Response Plan.

All information reflects the U.S. Small Business Administration plans as of April 7, 2020.


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