Will You Qualify for the $367 Billion in SBA Loans for COVID-19?

NAV.COM, Ty Kiisel - This article was updated on March 27, 2020, with the current state of the SBA Disaster Assistance in response to the coronavirus (COVID-19), what’s included within the $2 trillion aid package, when we can expect the aid to be available, and the process for applying for the relief. The SBA Disaster Assistance bill (CARES Act) that includes $367 billion in low-interest SBA loans was voted on by the House of Representatives and signed by President Trump this afternoon (3/27/2020). Over the coming weeks those funds will be made available to small businesses impacted by COVID-19.

This is good news for small businesses all across the country. The key takeaway for business owners today is funds are coming, and we should see them available over the coming weeks.

What Does the Aid Bill Mean for Small Businesses?

The good news is that the amount of capital being made available to small businesses has increased from the original $50 billion called for by President Trump a couple of weeks ago to $367 billion to keep employees on the payroll who need to stay home or shelter in place (up to eight weeks of assistance for qualifying small businesses).

It also appears that small businesses will be able to defer their payroll taxes until 2021 or 2022.

The straight scoop is that this legislation is complex, the SBA loan guarantees will likely not be available immediately, (expect at least a few weeks), and the details of how the low-interest loans will be distributed is yet to be determined in detail.