Everything You Need to Know About COVID-19 Federal Small Business Stimulus Aid Programs

 

Three separate packages approved by Congress and signed by President Trump over the past weeks offer a variety of assistance to businesses.

Here’s a breakdown of what Is in those packages and how your business can take advantage of these relief efforts.

We will continue to update this story as we obtain more information.

COVID-19 Preparedness and Response Supplemental Appropriations Act

What is it?

Signed into law on March 6, The Coronavirus Preparedness and Response Supplemental Appropriations Act provides $8.3 billion in emergency funding for federal agencies to respond to the coronavirus outbreak, enabling the U.S. Small Business Administration to offer $7 billion in disaster assistance loans to small businesses impacted by COVID-19.

What does it mean for small business?

  • The SBA is offering designated states and territories low-interest federal disaster loans to small businesses suffering substantial economic harm as a result of the corona virus.

  • These loans may be used by small businesses to pay fixed debts, payroll, accounts payable and additional bills that can’t be paid because of COVID-19’s impact. The interest rate is 3.75% for small businesses without other available means of credit. The interest rate for non-profits is 2.75%. Businesses with credit available elsewhere are not eligible.

  • The SBA loans come with long-term repayments, up to a maximum of 30 years, in an effort to keep payments affordable. Loan terms are determined on a case-by-case basis, according to individual borrower’s ability to repay.

  • The SBA has amended its disaster loan criteria to help borrowers still paying back SBA loans from previous disasters. By making this change, deferments through December 31, 2020, will be automatic. Hence, borrowers of home and business disaster loans do not have to contact SBA to request deferment.

Where can I learn more?

Ntare Consulting is a consulting firm that works on financial management, government compliance, fiscal planning and business solutions for entities both in the US and Uganda. We are a full-service business solutions firm and we help start new and/or maintain your existing business. Our process is to get with you and understand your business needs to tailor a process that can help you at the lowest cost possible.

 
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