These are very challenging times. This Coronavirus has laid a huge impact on the global economy and business owner. The government is trying to recover its economy and business owners are trying to sustain this immense blow. In order to do so either the business owner should have a built-in capital reserve or they should have a contingency plan like business insurance. But all business owner like small scale owner does not have these provisions to opt for business insurance, still in order to overcome this charade they can opt for business loans to help them stand firm and recover from this situation.
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Here we are going to talk about the 5 best COVID related business loans.
- SBA Economic Injury Disaster Loan Program for Small Businesses:
This loan is launched by the government to help small business owners from the impact of disasters like Coronavirus. This loan is launched under the government CARES Act. This act expands the total funding up to 10 billion dollars.
To help aid during this pandemic, the government has started a CARES (Coronavirus Aid, Relief, and Economic Security) Act. The main purpose of this act is to help small business owners with some financial support to recover from this downtime.
- Local and State Government Assistance Programs for Small Businesses:
Apart from the CARES Act, the local and state government has also come forth to provide financial aid to business owners. They are doing everything to assist in this time of economic slowdown. Applicants can apply for these loans within the state apart from the CARES Act SBA program. In this way, they can have the support of both the programs, and then they can choose which program fits best for their need.
- Paycheck Protection Program:
The Small Business Administration is giving a loan of up to 10 million to eligible business owners. These loans will be provided by lenders which will be including banks and credit unions. This loan can be forgiven if the business maintains the payroll for 8 weeks at the employee’s normal salary levels.
- Economic Injury Disaster Loans:
This loan is launched with the aim of providing financial assistance up to 2 million as a part of the disaster assistance program to all small businesses and non-profit organizations. The interest rates for this loan is 3.75% for small businesses and 2.75% for non-profit organizations. The repayment method may vary from applicant to applicant with the tenure up to 30 years maximum.
- Emergency grant of $10,000 to SBA Economic Injury Disaster Loan applicants:
Even if your business is denied for a loan due to some reason, there is also a contingency for that situation as well. The applicant then will have access to this grant. These loans can be used for many purposes like maintaining payroll, employee sick leave and many others need like paying rents.
So as you can see there are a lot of options available in the market to help you recover from this economic slowdown. You can choose as per your needs and try to establish your business once again. You just need to be vigilant and proactive, then surely you will find a way to revive from this situations.