As of April 21, 2020, the Senate passed a bill providing an additional $310 billion in funding to restart and expand an emergency small-business loan program. This bill still needs to be passed by the House of Representatives and signed by the President. However, it is anticipated that funding could be available by the end of this week.
These additional funds will expand the Paycheck Protection Program (PPP) and Economic Emergency Economic Injury Disaster Loans (EIDL). Many educational providers are considered small businesses, and we urge you to look into applying.
If you are eligible, it is recommended that you apply as soon as possible. Funds are expected to be fully dispersed quickly and are being given on a first-come-first-served basis.
How Do I Apply?
To apply, reach out to a local bank or lending institution that is an approved SBA 7(a) lender. You’ll need to have financial documents, like taxes and payroll information, available to answer questions about eligibility and to fill out the application, which is specific to each lender. Your lender will help you figure out if you’re eligible.
If you are eligible and need help filling out the application, you can contact your local SBDC for assistance.
How Can This Money Be Used?
These funds can be used to cover payroll and for certain other items, like payroll, rent, mortgage interest, and utilities.
While these are loans, the SBA will forgive the loan if all employees are kept on your payroll for eight weeks, and the money is used for items that qualify for forgiveness. The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest upon providing supporting documents to verify the funds were spent appropriately.
The process isn’t difficult and we urge educational programs to apply for these relief funds. We hope that this has been helpful to you and to your financial planning during these challenging times.