by Rachel Perkins, ICS Policy Research Intern The COVID-19 pandemic has upended all aspects of…
The federal government has recently passed legislation responding to the COVID crisis, which includes two important programs for Small Businesses, including non-profits. These can be very helpful for those who are struggling to make ends meet – especially for early care and education providers and other child-serving organizations – while we grapple with this public health emergency. The Mary Black Foundation, United Way of the Piedmont, and ICS recently facilitated webinars to discuss two of these programs, what they do, and how you can access them. A YouTube recording of the first webinar is available or you may view the slideshow.
Paycheck Protection Program & Economic Injury Disaster Loan
The first program we covered is the Paycheck Protection Program (PPP) – a forgivable loan, meaning that it can function much like a grant, to support small businesses with up to 2.5 months of payroll and certain other expenses (rent/mortgage, utilities). Funding for this was limited, and was given out on a first-come first-served basis. As a result, it has – since the webinar – run out of its initial funds. We recommend, however, that interested organizations still explore this opportunity with their bank. Congress is expected to provide more funding, though we fear that funding will also run out quickly, so those that have already ‘gotten in line’ are more likely to access these resources. The SBA’s bank finder tool can help find a participating bank in your area if you do not have a current relationship with an eligible provider.
The second program we covered is the (still funded and accessible) Economic Injury Disaster Loan (EIDL). This loan is a longer-term loan designed to help keep business afloat despite Economic Injury from COVID. This is not like a grant, but more like a mortgage (30-year term with a low interest rate). It also allows for an “emergency advance” loan of up to $10,000 for businesses currently facing crisis-related difficulties.
What did we cover?
- Who is eligible?
- Where and when do I apply
- How much can I borrow?
- How does repayment work? How much can be forgiven?
If any one has additional questions after reviewing the recording, we’re happy to discuss our own experience pursuing these resources. Please feel free to reach out to Bryan Boroughs with any questions.