SBA loans offer relief for small businesses
New York State small businesses are now eligible for benefits from the U.S. Small Business Administration (SBA). These funds are part of the $2 trillion federal stimulus bill (CARES Act) and an additional $484 billion aid package that was signed on April 24. These programs are likely to be in high demand.
SBA Paycheck Protection
The PPP provides loans to small business, nonprofits and sole proprietors with fewer than 500 employees. Loans of up to $10 million can be obtained to cover expenses from February 15 – June 30, 2020. These expenses can include employee payroll, rent, insurance, paid sick or medical leave, interest on mortgage obligations and utilities.
SBA Subsidy Loan Program
The CARES Act provides benefits for businesses with existing SBA loans; it pays the interest and principal payments for six months.
SBA Economic Injury Disaster Loan (EIDL) Program
This provides small businesses and nonprofits with low-interest loans of up to $2 million to help overcome other financial losses due to COVID-19.
For information, go to: https://esd.ny.gov/small-business-administration-sba-covid-19-loans.