Orlando, Fla.—This pandemic is not over. As a business owner is it important to be aware of the options and resources you’ll have on hand in case things don’t go back to normal, at least not just yet.To our advantage, this time around we are better prepared, with better knowledge of our lines of defense and tools to protect our businesses.
The U.S. Small Business Administration has well established programs to support small and medium sized businesses continue their operations. Some of their options include:
The COVID-19 EIDL is loan provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue. Its purpose is to meet financial obligations and operating expenses that could have been met had the disaster not occurred. The proceeds are to be used as working capital and normal operating expenses, and loan maximum amount ran up to $500,000.
Some collateral requirements are in place like for loans over $25,000. A general security agreement is used by the SBA in order to designate assets like machinery and equipment or furniture and fixtures, as collateral.
This type of loan is not forgivable.
The Targeted EIDL Advance and Supplemental Targeted Advance are funds that do not have to be repaid, designed for the hardest hit businesses and private nonprofits. To receive an advance, you must first apply for a COVID-19 Economic Injury Disaster Loan. You do not need to accept the loan or be approved for the loan to receive an advance. Once you apply for the loan, SBA will invite you via email to apply for one of the advance programs if your business is located in a low-income area.
NOTE: At this time Advance funds have been fully allocated and are not currently available unless another window opens.
The Shuttered Venue Operators Grant is a program that provides emergency assistance for eligible venues affected by COVID-19. It was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act. The program includes over $16 billion in grants to shuttered venues, to be administered by SBA’s Office of Disaster Assistance. Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.
The Restaurant Revitalization Fund is a program provides emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19. The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
The SBA offers debt relief to existing SBA loan borrowers whose businesses have been impacted by COVID-19. As a part of the CARES Act, SBA is authorized to pay six months of principal, interest, and any associated fees that borrowers owe for all 7(a), 504, and Microloans reported in regular servicing status (excluding Paycheck Protection Program loans, which is no longer available).
Borrowers need not apply for this assistance. SBA provides this assistance automatically as provided below:
For loans not on deferment, SBA will make monthly payments based on the next payment due on eligible loans for a total amount equivalent to no more than six months of installment payments.
For loans currently on deferment, SBA will begin making monthly payments with the first payment due after the deferment period ends for a total amount equivalent to no more than six months of installment payments.
At Garzor Insurance we care about your business. Our experienced professionals are dedicated to providing commercial insurance, including business general liability coverage in Florida as well as Georgia, Texas, and now many other states across the U.S.A. If you have questions about business insurance, or any other commercial insurance aspects, please do not hesitate to visit us online at Garzor Insurance, or you may want to call us directly at (321) 206-8035.
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