Following up from last week’s column about Massachusetts Based Small Business Loans, more loan options became available. This time, the relief comes from the Federal government, aimed to keep employees on staff, during the Corvid crisis. Here are some initial options and details:
- Economic Injury Disaster Loans & Grants. Grants up to $10,000 are available to small businesses (under 500 employees) and private non-profit companies, harmed by Corvid-19, within three days of applying online. This grant does not require any special use of the funds nor repayment. Loans up to $2 Million can be obtained to cover expenses which could have been met, had Corvid-19 not occurred.
- Paycheck Protection Program (PPP) Loans. These SBA loans are intended to cover 2.5 months of payroll expenses, and are forgivable if used to keep employees on staff. (Other use options include business rent, loan interest and utilities). If not forgiven, the loans are payable up to ten years at interest rates up to 4%. Application is made through SBA approved lenders, including local community banks. Beware, that the demand is so high that many lenders are only taking applications from their current business customers.
- Forgiveness of prior SBA Loan Debt. Up to six months of principal, interest and fee payments relating to SBA loans, may be paid by the Federal government. This applies to existing loans and new loans taken within six months of the passage of this law.
Attorney James Haroutunian practices estate planning and real estate law in Billerica at 790 Boston Road. Contact him to begin an estate plan or with questions at www.hlawoffice.com, www.prioritylaw.com, 978-671-0711 or email him at firstname.lastname@example.org.