First and foremost, we hope you and those close to you are safe and healthy during these unprecedented times. As a client of Widerman Malek, we are always looking out for your best interest. We have received countless calls and emails about the recently enacted SBA stimulus programs. There is a lot of confusion and misinformation out there about the programs, and we are here to help you!
Small businesses across America need help. Many are applying for some form of the Stimulus Package, so the lines get longer and the amount of money remaining available gets smaller each day. If you have not already applied for an SBA loan due to economic injury from COVID-19, please start the process now!
What does the new stimulus package provide? What programs are available? Who is qualified? How do you apply? How long will it take to get money? What are the terms?
While it may seem like the application is simple for an individual to complete, there are actually many steps in the process, and it can be time-consuming and complicated after the initial registration is done. If you run into any trouble completing your application, please reach out to us for help.
Along with completing the process ourselves, we are working with many other small business clients to help them with the confusion caused by the myriad of programs and misinformation. We can assist with the application process and advise on what program may be best for your business. Our business attorneys are also career entrepreneurs. They have navigated stimulus relief packages in the past and personally applied for the relief that you too may currently need. Our experience can help you!
As part of our assistance, we will explain each program to you so you can make an informed decision. We will tell you exactly what paperwork is needed, and once you assemble it, we will process your loan applications for you.
Here is a brief breakdown of the various programs that are available:
SBA Economic Injury Disaster Loan (EIDL)
- Administered directly by the SBA
- Online application process (this is time-consuming and laborious)
- Maximum loan of $2 million, determined by SBA
- 3.75% fixed for 30 years
- No payments for the first 6-12 months
- Bifurcated application process: Within 72 hours of submitting a complete application, you can receive a grant of up to $10,000. This does not have to be paid back, even if the loan is not approved
- Processing time for actual loan amount estimated at this time to be 4-6 weeks
SBA Payroll Protection Program (PPP)
- Lending/application process still undecided
- Administered by approved SBA lender
- Maximum loan is equal to 2.5 months of payroll
- 1.0% interest fixed for 2 years, as of latest update
- No payment for the first 6 months
- No personal guarantee required
- Easy qualifying
- Estimated processing time is 2-3 weeks
- Eligible for loan forgiveness an amount of payroll, rent or mortgage interest, and utilities for the 8 week period following loan disbursement
- Must keep the same number of staff members (or more) employed for the first 8 weeks following loan disbursement that you had prior to February 15, 2020
Main Street Lending Program
- Administered by the Federal Reserve
- Specifics coming after the passage of the bill (10 days afterward)
- No details on program terms, but industry experts expect this may be shorter-term (5 year) low-interest rate loan
Next Steps
You can apply for these programs at no cost, but we know the process can be challenging and confusing. If you prefer to have our attorneys handle the EIDL application process for you, from start to finish, we can offer those services to you. The flat fee for these services is $2,500.
Although the SBA makes the sole determination on eligibility, you will receive a $10,000 grant within 3 days of completing the application process just for applying, regardless if you are approved or not! The PPP application is much simpler and can be filled out yourself. However, if you would like our assistance, we would be happy to help.
We are processing our client’s applications on a first-come basis, so the sooner you contact us, the sooner your grant and loan process will be underway.
We are here to help. If you would like our assistance, simply contact your primary attorney at Widerman Malek, or email SBAHelp@USLegalTeam.com.
Thank you,
Your Widerman Malek Legal Team
