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COVID-19 Retail Relief Programs

Posted by Springboard Retail on Apr 1, 2020
Springboard Retail

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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