It is no secret that the USA is going through hardships and the ones hurting the most are all our small businesses. In this article, we briefly go over how a disaster relief loan works and how it can help save your business during this pandemic.
Whats is a disaster relief loan?
This loan is a grant that was just signed by President Trump, This is an EIDL program. EIDL stands for – economic injury disaster loan and you can get it through the SBA administration. In order to qualify for this loan, you have to be a small business of 500 or fewer employees. This loan also applies to any individual who operates as a sole proprietor or without employees who may be an independent contractor.
Do you have to pay back this loan?
Under the Cares Act, its states – .amount-The amount of an advance provided under the subsection shall not be more than $10,000. This does not mean that you can’t get a loan greater than $10,000 because you absolutely can but the government is willing to advance the $10,000 right away. In the cares Act, there is a repayment section – where is states an applicant shall not be required to repay any amounts of an advance provided under this subsection, even if subsequently denied a loan. small business act (15 U.S.C 636 (b) (2) ) Section 110 of the Cares Act.
How do I know if I qualify?
The following are some BUT not all qualifying pointers to the Care Act of how your business qualifies for this loan.
- Providing sick leave to employees unable to work due to the direct effect of the COVID-19;
- Maintaining payroll to retain employees during business descriptions or substantial slowdowns.
- Meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains.
- If you have rent or mortgage payments those expenses would qualify.
If you meet one or more of there criteria all of the money that you use to cover these criteria will be forgiven.
Where do I go to apply?
The application process should take you no more than 10 minutes and you can find our application here https://sourcifylending.com/apply-for-business-loan/ , once you are on the page click on apply now. Once you have applied you are now ready to start your loan process, one of our reps will contact you via email or by phone to go over the required documents needed to get the loan expedited.