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The Pandemic & Saving Small Businesses

Posted By Gary Wolcott, Tuesday, March 24, 2020

Some states — the PIA Western Alliance states of Washington, Oregon and California — are completely shut down. Stay at home orders are in place in those states and other PIA Western Alliance states and other states in the union are under restrictions of one sort or another.

The stay at home orders or shelter in place orders or orders to close down businesses is killing small business in the U.S.

That fact is not lost on the Trump administration and the Small Business Administration (SBA) has been ordered to help and has been given $50 billion to distribute around the country to cash-strapped small business owners.

In a tweet, the president said, “Today I spoke with our Nation’s Small Businesses, which employ nearly half of America’s workforce. We are taking the MOST aggressive action in history to deliver fast relief to your businesses and workers. We will always protect our Small Businesses!”

Alejandro Contreras is the director of the SBA's Office of Disaster Assistance. He told Yahoo, “The money's already starting to be approved,” he said and he’s working on cutting the red tape to make it flow more quickly. “The money will “start to roll out to the states as quickly as possible.”

But will it get there in a timely manner?

“We've had a lot of experience with large scale disasters over the past years but this is something that we haven't really seen before” Contreras said. “On average, it takes between two and three weeks to process a decision on an application.”

The loans can be used in a number of ways. They can pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. And — as expected — the loan is based on the financial impact of the COVID-19 virus on a business.

The deal also gives small businesses a one-year deferment on payback and the SBA says payments will be affordable and can go up to 30-years. The interest rate for the loans has been set at 3.75% for small businesses and 2.75% for non-profits.

The Small Business Administration has an emergency page where you can go to get started on a loan. Click here to access that page.

Source link: Yahoo


Tags:  business loans  business losses  COVID-19  Small business  Small business loans  stay at home restrictions  The Small Business Administration 

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