Some relief possible for small businesses struggling through COVID-19 crisis

Ruben Fields
March 28, 2020

Small Business Emergency Assistance Guarantee Program: The $10 million program will provide 50 percent guarantees on working capital loans and waive fees on loans made through institutions participating in the NJEDA's existing Premier Lender or Premier CDFI programs.

"Any business that can show it has had diminished cash flow because of (the coronavirus) can apply for an emergency disaster loan", said Ashley Bell, SBA regional director. "We sincerely appreciate the partnership with the Garrett County Development Corporation in making this happen". The loans are not meant to replace lost sales or profits or for expansion. Payments would resume 30 days after the state removes the suspension on loans and mortgages, with determinations on a business' or restaurant's eligibility to be made by the state Department of State. It is important to speak with your lender to ensure you have clear understanding how you can qualify for the loan forgiveness. This will apply to current and future disaster assistance declarations related to Coronavirus. Additionally, businesses with more than 500 employees-usually considered the upper threshold for the small-business distinction-are eligible for the loans if they operate in the food or accommodations industries or are nonprofits or veterans organizations.

No Collateral Required - During the covered period, no collateral is required for a covered loan. Also, pay attention what the loans can be used for, as there may be some limitations.

If passed, what businesses will be eligible to apply for loans and how can they apply?

Note that the general 7 (a) requirement that in order to be eligible, the rule that a small business concern is eligible only if it is "unable to obtain credit elsewhere" does not apply. Terms are determined on a case-by-case basis, based upon each borrower's ability to repay.

Federal Government Sets Wage Subsidies, Supports for Businesses Affected by COVID-19
After its closure to non-essential travel because of COVID-19, the USA could be looking into other measures along that stretch. Army, told Pentagon reporters during a press conference that the Army has not gotten any directive to go to the border.

However, some owners in South Florida are relieved that financial help may be on the way.

Small businesses that have been financially impacted as a direct result of COVID-19 since January 31 may qualify for up to $2 million from EIDLs.

Do NOT pay for application assistance.

Siekerka, Esq. released the following statement in response to the package of grant, loan and support programs approved and announced today by the New Jersey Economic Development Authority to help businesses hurt by the coronavirus response.

With President Donald Trump soon expected to sign an unprecedented $2 trillion economic stimulus package aimed at supporting USA businesses and individuals, you're probably wondering what it all means for you as a small-business owner.

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