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Businesses struggling to keep their doors open amid the ongoing public health crisis may not be aware of the financial resources available to them.\u00a0Here are five things s<\/span>mall b<\/span>usinesses may not<\/span>, but should,<\/span> know about available COVID-19 relief<\/span>:<\/span><\/p>\n 1.\u00a0 \u00a0Small businesses, which include businesses with up to 1,500 employees and a maximum of $38.5 million in average annual receipts, could get six months of principal, interest, and associated fees on covered Small Business Administration (SBA) loans <\/span>paid \u2013 <\/span>up to $9,000 per month<\/span>,<\/span> subject to the availability of funds.\u00a0<\/span>The SBA also now has agreed to waive the Guaranty Fee on 7(a) and 504 loans which savings could exceed $100,000 for small business borrowers.<\/p>\n 2.\u00a0 \u00a0The SBA has increased the <\/span>percent<\/span>age<\/span>\u00a0of\u00a0<\/span>some\u00a0<\/span>loans\u00a0<\/span>they will guarantee from 75<\/span>%\u00a0<\/span>to 90<\/span>%<\/span>. This higher guarantee decreases the risk\u00a0<\/span>to<\/span>\u00a0the bank\u00a0<\/span>when lending\u00a0<\/span>and could make SBA loans easier to obtain.<\/span>\u00a0<\/span><\/p>\n 3.\u00a0 \u00a0The deadline to apply for <\/span>COVID-19 Economic Injury Disaster Loans<\/span>\u00a0(EIDL) has been extended.\u00a0<\/span>Th<\/span>e<\/span>s<\/span>e<\/span>\u00a0loan<\/span>s<\/span>\u00a0provide economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue.<\/span>\u00a0<\/span>Rates are\u00a0<\/span>3.75% for businesses (fixed)<\/span>\u00a0and\u00a0<\/span>2.75% for nonprofits (fixed)<\/span>\u00a0for\u00a0<\/span>30 years<\/span>\u00a0with n<\/span>o pre-payment penalty or fees<\/span>.\u00a0<\/span>The loans can be used for w<\/span>orking capital\u00a0<\/span>and<\/span>\u00a0normal operating expenses<\/span>. <\/span>EIDL Loan Applications are now being accepted through December 31, 2021.<\/span>\u00a0<\/span><\/p>\n 4.\u00a0 \u00a0<\/span>For the next round of Payroll Protection Program (PPP) loans, only employers with 300 employees\u00a0or less\u00a0will be eligible. Round one awarded\u00a0loans\u00a0to businesses with up to\u00a0500\u00a0employees and was criticized for not being tailored to small businesses. Businesses\u00a0must also show a 30%\u00a0quarter-over-quarter loss in gross receipts.\u00a0Businesses\u00a0have\u00a024 weeks to spend\u00a0their\u00a0loan proceeds\u00a0to\u00a0remain eligible for loan forgiveness.<\/p>\n 5.\u00a0 \u00a0It is possible for businesses who have not <\/span>yet\u00a0<\/span>gotten a\u00a0<\/span>PPP\u00a0<\/span>loan\u00a0<\/span>still\u00a0<\/span>to get\u00a0<\/span>two\u00a0<\/span>PPP loans<\/span>.<\/span>\u00a0Timing and representations\u00a0<\/span>must<\/span>\u00a0be right<\/span>.<\/span>\u00a0<\/span>The SBA prefers that borrowers have applied for forgiveness before applying for a<\/span>\u00a0second loan<\/span>, but borrowers\u00a0<\/span>still\u00a0<\/span>can<\/span> get the first loan, and then make appropriate and\u00a0<\/span>timely representations that they have spent or will spend the money for approved\u00a0<\/span>purposes, and then could be eligible to apply for a second loan<\/span>\u00a0before the\u00a0<\/span>deadline<\/span>\u00a0<\/span>la<\/span>ter<\/span>\u00a0<\/span>this\u00a0<\/span>spring<\/span>.<\/span>\u00a0<\/span><\/p>\n The Lynch Law Group\u2019s Corporate Practice<\/a><\/span>\u00a0<\/span>is\u00a0<\/span>available for consultations to structure, negotiate, and close deals in the COVID-19 environment and beyond<\/span>\u00a0as well as to assist with corporate restructurings<\/span>. <\/span><\/p>\n Call 724-776-8000 to schedule a time to discuss your business needs, to address legal questions about PPP loans or disaster relief, or if you need a personal introduction to an SBA Business Development Officer.<\/p>\n","protected":false},"excerpt":{"rendered":" Financial Resources To Stay Afloat Businesses struggling to keep their doors open amid the ongoing public health crisis may not be aware of the financial resources available to them.\u00a0Here are five things small businesses may not, but should, know about … Small Business Administration (SBA) Loans<\/h2>\n
Economic Injury Disaster <\/span>(EIDL)\u00a0<\/span>Loans\u00a0<\/span><\/h2>\n
Payroll Protection Program (PPP) Loans<\/h2>\n
Pittsburgh Corporate Attorneys<\/h4>\n