If you are running a small tax preparation company, you have defiantly faced some of the effects of COVID-19. Because the government declared a federal state of emergency which has affected the small businesses, in such situations, what would you do? To help these small businesses, the government has announced the loan program through which they can apply for a loan to help with the financial burden of the epidemic.
Types of SBA Loan Programs
Here below, we have mentioned the four different types of SBA loan programs which can be beneficial for small businesses such as tax preparation in Hayward during the Covid-19 pandemic.
- Economic Injury Disaster Loan Emergency Advance
- SBA Express Bridge Loans
- Paycheck Protection Program (PPP)
- SBA Debt Relief
Economic Injury Disaster Loan Emergency Advance (EIDL)
The SBA’s first type of loan will provide economic relief of up to $10,000 for small businesses struggling to break COVID-19.
SBA Express Bridge Loans
The second type of SBA loan is SBA Express Bridge Loan, which allows small businesses to qualify for $25,000. If you’re waiting for approval of a natural disaster loan application, apply for a bridging loan to cover your short-term business if you need cash urgently. The SBA provides financial assistance to indebted small businesses during the COVID-19 outbreak.
Payment Protection Program (PPP)
The third type of SBA loan is the Payment Protection Program which helps companies maintain employment during the COVID-19 epidemic. PPP aims to encourage you as a small business owner to keep employees on the payroll.
SBA Debt Relief
The last type of SBA loan program is SBA Debt Relief, which provides financial assistance to indebted small businesses during the COVID-19 pandemic.
The SBA will automatically pay the principal amount, interest, and rates on current loans 7(a) for six months. The SBA will also automatically pay the amount of capital, interest, and fees on new 7 (a) loans issued before September 27, 2020.