Running a business sure is hard work. Aside from keeping your employees and customers happy, you should also learn to properly manage the business’ financial aspects, especially when you have a Business loan to pay off.
However, with a pandemic raging across the planet, businesses took a hard hit as most closed their shops to stem the virus’s spread. Thus, governments across the globe like the USA try to find ways to ease the pandemic’s economic effect through the corona stimulus package.
But, how do you apply for a business loan through this package? There are three ways by which businesses in the US can apply for credit.
Express Bridge Loans
This loan allows owners already transacting with SBA express lenders to access up to $25,000 assistance. The funds can temporarily cover business expenses while applying for the SBA Economic Injury Disaster Loan (EIDL). Once your EIDL application’s approved, the owner can pay the loaned amount in part or in full.
EIDL Loan Advance
This type of loan provides up to $10,000 in cash assistance to businesses temporarily affected by lockdown measures. However, it doesn’t require its recipients to pay the amount borrowed. They simply deduct the amount from the total loan eligibility granted to the borrower.
But, due to the current funding limitations, only businesses in the agriculture sector with five hundred or fewer employees can avail of this credit. For those who already submitted their applications beforehand, first-come, first-served basis rule’s followed.
Paycheck Protection Program
This type of SBA loan aims to keep the businesses’ workforce intact amid the pandemic. To further entice entrepreneurs, the SBA grants loan reprieves if they meet the following criteria:
- The company continues to keep the employees on the payroll for eight weeks.
- One uses the loaned amount for related business expenses (rent, mortgage, payroll, utilities, and interests).
To apply for this loan, a business owner can choose to transact with an SBA lender, federally insured debit and credit unions, or a farm credit system institution. You can always ask your local lender if they’re a participant.
Indeed, if there’s a will to keep one’s business alive, there are various methods to choose from. For more information, it’s best to visit the official US SBA website for pertinent details.