Introduction
The ongoing pandemic has affected the global economy, with small businesses being hit the hardest. Small businesses are the backbone of the economy, and their survival is crucial for the overall economic recovery. In this article, we will discuss five small business relief options that can help them weather the storm.
Economic Injury Disaster Loan
The Economic Injury Disaster Loan (EIDL) is a low-interest loan offered by the Small Business Administration (SBA) to help small businesses impacted by a disaster. The loan provides businesses with working capital to cover their expenses, such as payroll and rent. The loan can be repaid over a period of up to 30 years.
Paycheck Protection Program
The Paycheck Protection Program (PPP) is another relief option offered by the SBA. This program provides forgivable loans to small businesses to cover their payroll and other expenses. To qualify for the loan, the business must maintain their payroll for a specific period. If the business uses the funds to cover their payroll, rent, and utilities, the loan can be fully forgiven.
Main Street Lending Program
The Main Street Lending Program is a relief program offered by the Federal Reserve to provide mid-sized businesses with loans to cover their expenses. This program is aimed at businesses with up to 15,000 employees or less than $5 billion in annual revenue. The loan can be repaid over a period of up to 5 years.
CARES Act Tax Relief
The CARES Act provides several tax relief options for small businesses. The options include deferring payroll taxes, taking advantage of tax credits, and carrying back net operating losses. These options provide small businesses with a cash flow boost and help reduce their tax liability.
State and Local Relief Programs
Several state and local governments have launched relief programs to help small businesses impacted by the pandemic. These programs offer grants, loans, and other forms of assistance to small businesses. Small businesses can check with their local governments to see if they are eligible for such programs.
Conclusion
Small businesses are facing unprecedented challenges due to the ongoing pandemic. However, there are relief options available to help them weather the storm. Small businesses can take advantage of the Economic Injury Disaster Loan, Paycheck Protection Program, Main Street Lending Program, CARES Act Tax Relief, and State and Local Relief Programs to get through this tough time. By availing these relief options, small businesses can stay afloat and contribute to the overall economic recovery.
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