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SBA Economic Injury Disaster Loans for COVID-19

Dear SBDC Clients, Resource Partners, and Friends,   There are now two programs available to NYS small businesses that require disaster assistance as a result of COVID-19. Click here to view the document, “The Small Business Owner’s Guide to the CARES Act,” which helps explain the programs (plus a third program available to NYS small businesses: the Small Business Debt Relief Program) and which program may be right for you. Our webinar, scheduled for March 31 at 1:00, will explain the two programs.   Webinar: SBA Economic Injury Disaster Loans for COVID-19 Register here: This webinar will discuss two disaster assistance programs recently announced to assist you if your business has been affected by COVID-19  Part 1 — Overview of SBA Economic Injury Disaster Loan Program Part 2 — Overview of Paycheck Protection Program (PPP) Part 3 — Your Feedback and Questions Thanks to Berkshire Bank for co-sponsoring this webinar. Please note: due to the high volume of registrations we have received for this webinar, we may not be able to accommodate everyone on the live broadcast. If you are unable to log in to view the webinar, you will still receive a copy of the webinar recording approximately one day after the original broadcast.   Details about the two programs can be found below:   SBA Economic Injury Disaster Loans and Loan Advance The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are now eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid. Click here to view the document “Economic Injury Disaster Loan FAQ” from Empire State Development for more information. Apply here:   SBA Paycheck Protection Program The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses. Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards. Under this program: • Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount. • Loan payments will be deferred for six months. • If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination. Click here to view the document “Coronavirus Emergency Loans – Small Business Guide and Checklist” from the U.S. Chamber of Commerce for more information.  Businesses should apply for this program directly with their bank or financial institution.   If you have any questions about either of these programs, please reach out to us for assistance.   Sincerely, The Mohawk Valley SBDC Team