The pandemic has affected lives in ways nobody could have anticipated. Many people all over the world have lost jobs and businesses overnight, leaving them struggling to make ends meet.
In particular, small businesses that once thrived on local patronage are now struggling to survive. Thankfully, there are loans for pandemic relief that can help you navigate these difficult times.
There are a few different types of loans for pandemic relief that you can consider, including:
PPP loans are designed to help businesses keep their employees on the payroll. The program is specifically geared towards helping small businesses that have been impacted by the pandemic.
The loans offered through this program have a forgivable portion, which means that if used for approved expenses, the borrower does not have to pay the loan back in full. The program has been extended through May 31, 2021, and provides funding for up to 24 weeks of payroll costs, mortgage interest, rent, and utilities.
EIDLs are low-interest loans that are meant to help small businesses pay for expenses that they cannot cover due to the pandemic. These can include things like payroll, rent, and other operating costs.
The loans are available with long repayment terms, up to 30 years, and interest rates as low as 3.75%. Additionally, they come with a 12-month deferment on principal and interest payments.
The SBA's Express Bridge Loan pilot program was set up to help small businesses that already have a relationship with an SBA Express Lender. Express Bridge Loans allow small businesses that have an urgent need for funds to bridge the gap until they can obtain EIDL cash advances, or other more permanent financing.
Loan amounts for this program are up to $25,000 and are available in as few as 45 days.
In order to qualify for loans for pandemic relief, you must meet certain eligibility requirements, which are different for each program. Generally, you must be able to demonstrate that you have been impacted by the pandemic, either financially or otherwise.
For PPP loans, businesses must have been in operation prior to February 15, 2020, and must have 500 or fewer employees. They must also be able to show that they have experienced a significant decline in revenue or have been forced to shut down due to COVID-19.
For EIDLs, businesses must have 500 or fewer employees and be able to demonstrate that they have suffered a substantial economic injury as a result of the pandemic. Additionally, they must show that they are unable to obtain credit elsewhere.
Loans for pandemic relief can be a lifesaver for small business owners and individuals who have been impacted by the pandemic. PPP loans, EIDLs, and SBA Express Bridge Loans are just a few of the options that are available, and it's important to understand the eligibility requirements for each program.
If you're struggling to keep your head above water due to the pandemic, don't hesitate to explore your options for financing. With a little bit of help, you can weather this storm and come out on the other side stronger than ever.