By Kim Preston, Rural Business Support Project Manager, Rural Affairs Center
With a crazy 2020 almost on the books, let’s take a look at the opportunities available to your business and what you need to do to cross the finish line on December 31st.
Have you spent your Payment Protection Program (P3) dollars? This Small Business Administration (SBA) loan program is closed and now is the time to beg your pardon.
According to the SBA, borrowers may be eligible for a loan forgiveness if the funds were used for qualifying wage charges, payments on commercial mortgage interest payments, rent, or utilities during the 8 or 24 period. weeks after disbursement.
A borrower can request the discount after they have used all of the loan proceeds for which the borrower is requesting the discount. Borrowers can request the discount anytime up to the loan maturity date. If borrowers do not request a rebate within 10 months of the last day of the covered period, PPP loan payments are no longer deferred and the borrower will start making loan payments to their PPP lender.
Work with your PPP lender to request the loan forgiveness.
Have you applied for an SBA Economic Disaster Loan (EIDL)? There is still time. This low interest long term loan can help you jumpstart your business.
Small business owners, including farm businesses and nonprofit organizations, can apply for an EIDL. The program is designed to provide economic assistance to businesses that are currently experiencing a temporary loss of income due to COVID-19. Potential borrowers should visit covid19relief.sba.gov/#/ for the request.
The product can be used to cover a wide range of working capital and normal operating expenses, such as maintaining health care benefits, rent, utilities, and fixed debt payments. Payments will be due 12 months after the signing of the promissory note. Payments on this loan are not forgivable; however, payments can be made at any time and there is no prepayment penalty.
(Established in 1973, the Rural Affairs Center is a private, non-profit organization that works to strengthen small businesses, family farms and ranches, and rural communities).