Federal SBA Relief for Small Businesses is Now Here

/ Northshore Legal LLC/

The Federal CARES ACT (Coronavirus Aid, Relief, and Economic Security Act), in part, provides immediate relief for small business owners who are facing capital crunches due to the present economic slowdown. This article will provide a brief overview of the programs presently available for small business owners in Massachusetts and throughout the United States.

The Small Business Administration (SBA) has expanded the 7(a) Small Business loan program to provide employers with payroll assistance to ensure that employees stay employed. The Paycheck Protection Program (PPP) Loans provides provide cash-flow assistance through 100% Federally guaranteed loans to employers who maintain their payroll during the pandemic. If employers maintain their payroll, the loans would be forgiven, and if certain conditions are met. Effective April 3, 2020, small businesses and sole proprietorship can apply through any Federally insured banking institution that is Small Business Administration (SBA) certified. On April 10, 2020, independent contractors and self-employed individuals may apply for 7(a) loans. It is recommended that any businesses that require case assistance to retain employees and pay for critical health care benefits contact their preferred SBA lender as soon as possible.

Under the Small Business Debt Relief Program, the SBA will assist with SBA loan payments, including all principal, interest and fees for a period of six (6) months.

Under the Economic Injury Disaster Loans and Emergency Economic Injury Grants Program, small businesses are eligible for a $10,000.00, and the funds must be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.

This article is merely a brief of the Federal assistance. Please visit the SBA on the Web for more detailed information, or visit: https://www.sba.gov/page/guidance-businesses-employers-plan-respond-coronavirus-disease-2019-covid-19?utm_medium=email&utm_source=govdelivery and https://www.sba.gov/funding-programs/loans

Northshore Legal LLC of Lynnfield, MA is a boutique law firm and is led by Stefan E. Cencarik, Esq. We specialize in residential and commercial real estate, business transactions, corporate law, and probate. We can be reached at 781-463-6063 or consultation@northshore.legal.