Top 5 Small Business Relief Programs to Help You Through COVID-19

The COVID-19 pandemic has caused a lot of havoc to businesses around the world. The global economic impact is immeasurable, affecting small businesses the most. Small businesses, which form the backbone of our economy, have been hit hard by the pandemic. However, there are some relief programs that small business owners can turn to. In this article, we will explore the top 5 small business relief programs that can assist you in weathering the COVID-19 storm.

1. Paycheck Protection Program (PPP)

The PPP is a loan program that provides small businesses with funds to pay their employees during the pandemic. This program is open to businesses with less than 500 employees and covers expenses like payroll, rent, and utilities. The loan has a 1% interest rate and is forgivable if the funds are used for qualified expenses.

2. Economic Injury Disaster Loans (EIDL)

The EIDL is another loan program that helps small businesses during a disaster. This program is open to businesses with less than 500 employees, and the loan amount can go up to $2 million. Interest rates are low, and the first year of payments is deferred. The funds can be used to cover expenses like rent, payroll, and accounts payable.

3. Express Bridge Loan (EBL)

The Express Bridge Loan program is designed to provide immediate relief to small businesses affected by COVID-19. This program is open to businesses that have an existing relationship with an SBA Express lender. The loan amount is up to $25,000, and businesses can use the funds to cover expenses like payroll, rent, and utilities.

4. Small Business Debt Relief Program

The Small Business Debt Relief Program is for small businesses that have an SBA 7(a), 504, or Microloan. This program helps cover the principal, interest, and fees on these loans for six months. This program can provide some financial relief to small businesses that have existing debt.

5. Employee Retention Tax Credit (ERTC)

The ERTC is a tax credit for small businesses that retain their employees during the pandemic. This tax credit can reduce payroll taxes and can be claimed on quarterly tax filings. The credit is equal to 50% of employee wages, up to $10,000 per employee.

In conclusion, small businesses have been hit hard by the COVID-19 pandemic, but these top 5 small business relief programs can provide some financial relief. The PPP, EIDL, EBL, Small Business Debt Relief Program, and ERTC are designed to help small businesses survive during these unprecedented times. Business owners should consider these programs’ eligibility criteria and choose the best program that will suit their business needs.