Helping Small Businesses Affected by Coronavirus: 5 Programs Available in New York and More
Due to the economic situation due to the coronavirus, small business owners found themselves in limbo - they don’t know what awaits them tomorrow, and most importantly they don’t understand what to do next. No one can give a clear answer to this question, but there are several options for supporting small businesses that you can take advantage of.
To date, there are 5 programs available to small businesses in the city of New York (2 city and three federal). Which program is right for your situation depends on the following factors:
- the duration of the company on the market;
- the number of employees;
- average amount of salary expenses for business employees;
- Does the company have tax debts;
- can you show that business income in 2020 fell by at least 25% compared to last year.
When applying for a help program it will be necessary to provide documents with all of the above information.
There are two programs in New York today: the Employment Retention Grant and the Small Business Continuity Program. If your business is registered in the city, you can try to apply for one of them.
Employment Retention Grant (application deadline ends April 3, 2020)
This is a grant under which you can receive up to $ 27 to cover 000% of your employees' salaries in 40 months. To do this, your company must:
- located in the city of New York;
- have from 1 to 4 employees;
- Be in business for at least 6 months;
- not have tax debts;
- show that the company's revenue in 2020 decreased by 25% compared to last year.
Additional information about the program here: NYC Employee Retention Grant | SBA Loans
Small Businesses Continuity Loan Program
This is an interest-free loan that allows you to get up to $ 75. To do this, your business must:
- located in the city of New York;
- show that the company's revenue in 2020 decreased by 25% compared with the previous year;
- the number of employees should not exceed 99 people;
- provide evidence of the ability to repay the loan in the future;
- not have tax debts.
Additional information about the program here: NYC Small Business Continuity Loan | SBA Loans
Now let's move on to the federal programs that are presented by Small Business Administration.
Economic Injury Disaster Loan Program
This is a loan on which you can get up to $ 2 million. When applying for participation in the program, you have the opportunity to request and receive an advance of $ 10, which you will not have to return in case of refusal to grant a loan. If you need more than $ 000, you will need to provide a security deposit in the form of real estate or equipment. The interest rate on this loan is 25%, the loan term is up to 000 years.
To participate in the program, your company must:
- to prove their belonging to the category of small business;
- demonstrate that she suffered losses due to coronavirus;
- you must use the loan you received to pay salaries and pay current bills, which you could pay yourself if it weren’t for the virus situation.
Additional information about the program here: EIDL | SBA Loans
Express Disaster Bridge Loan
This is a loan that you can get while waiting for an answer on Economic Injury Disaster Loan. The loan amount is up to $ 25 000. Prime loan interest rate + 6,5%, loan term - up to 7 years. When applying for this loan you must prove that you cannot get a loan elsewhere.
Additional information about the program here: SBA Express Bridge Loan | SBA Loans
Paycheck protection program
The advantage of this loan is that part of it can be forgiven if the money received is spent on salaries for employees, renting premises for your business, or paying utility bills. The maximum loan amount is calculated by the formula: 2,5 x your monthly salary costs. Interest rate - 4%, loan term - up to 10 years.
Additional information about the program here: PPP | SBA Loans
You do not need a lawyer in order to apply for a loan or grant, described in this text. But if you need legal advice, you can contact Ishimbayev law firm:
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