NEW APPROPRIATION FOR COVID 19 RELIEF FOR SMALL BUSINESSES
Many of you were unsuccessful in gaining any of the hundreds of billions of dollars intended to provide relief to small businesses during this Covid 19 Pandemic Crisis. Unfortunately, the money intended to provide some relief for small businesses in the form of the Disaster Loans and the Paycheck Protection Program (PPP) ran out the 16th.
GOOD NEWS, though!! Congress has appropriated additional money and President Trump signed the appropriation into law this past Friday. US Department of Treasury stated that the additional money should be available Monday April 27.
BUT YOU NEED TO ACT FAST!!
Here’s the announcement I received in my email from the NC offices of the SBA regarding this program:
SBA COVID-19 Disaster Assistance
By: Thomas A. Stith III
NC District Office
In wake of the COVID-19 disaster declaration, the SBA North Carolina District Office has been working tirelessly to ensure details regarding SBA's disaster assistance programs are distributed to the citizens of North Carolina.
Please take this opportunity to review the below messages regarding the newly signed Paycheck Protection Program.
Resumption of the Paycheck Protection Program
President Trump has signed legislation, passed by the U.S. Congress, that will provide an additional $484 billion in funding for various COVID-19 related programs. Of the total, $310 billion will go to replenish the Paycheck Protection Program (PPP) while $60 billion will replenish the Economic Injury Disaster Loan (EIDL) program. In order to ensure underserved communities are not overlooked, the legislation authorizes appropriations as follows:
- At least $30 billion available for banks and credit unions between $10 - $50 billion in assets; and
- At least $30 billion available for banks and credit unions less than $10 billion in assets, as well as community financial institutions.
The legislation includes funding to enable smaller types of businesses to access funding that may not have been obtainable previously.
To that end, the SBA North Carolina District Office has provided a listing of North Carolina-based banks, credit unions, and community development financial institutions participating in PPP based on asset-size categories. The listing will be updated as new lenders come on board.
In addition to North Carolina-based PPP lenders, the SBA continues to maintain its general listing of lenders. This listing includes lenders active in SBA lending during the past fiscal year and includes many notable lenders not based in North Carolina.
The Disaster Relief Loans need to be applied for directly through the SBA. The link for the application page is https://covid19relief.sba.gov/#/ If approved, money will be deposited directly into your business’s checking account.
The Paycheck Protection Plan must be applied for through your bank. I highly recommend you go first to the bank that manages your business banking. If your bank participates, they will be able to sort any issues out with your application since they have specific call center contacts to work with.
Depending on your circumstance, there may be other programs you can qualify for to help keep the lights on. Again, check first with your business banker. If that does not help, reach out to the Small Business Center at your local community college or contact the SBA at the NC District Office.