SB Debt Relief

The SBA provides small businesses with financial breathing space during the COVID 19 pandemic. Small business owners in affected areas of the US and Canada are entitled to up to $1,000 in debt relief from the Small Business Administration (SBCA). If you have an existing SBA loan that is not related to COVID-19 or an emergency or disaster, you are eligible for an SBA loan of up to $1,000 per month or $2,500 per year.

By applying for a loan from the Small Business Administration (SBCA) of the SBA or the US Department of Health and Human Services (HHS), these loans provide important economic support to small businesses by helping to overcome the temporary loss of revenue they have suffered. They can also be used to bridge the difference between a small business owner's current income and the total income of the business to apply for an additional loan of up to $1,000, or a total of $2,500 for the entire loan.

If a small business is in desperate need of cash while awaiting a decision on whether to pay out the EIDL, it can qualify for an SBA Express Disaster Bridge Loan. Small businesses may urgently need cash while they await a decision on a disaster relief or emergency plan payout by the US Department of Health and Human Services or the Federal Emergency Management Agency (FEMA), or when the company is experiencing a severe financial crisis.

If a small business is in urgent need of cash, it can qualify for an SBA Express Disaster Bridge Loan just like large companies.

If you are a small business with an outstanding loan of more than $10,000, you can apply for a loan guarantee through the SBA Debt Relief Program. For small businesses with outstanding loans, this is the way you can still make loan payments during a coronavirus pandemic.

Besides SBA loans and debt relief, there are other ways in which small business owners can receive financial assistance. A program is particularly interesting if you have received a credit supported by the Small Business Administration (SBIA). Applying for one of these loans does not prevent your company from using another loan from the U.S. Department of Housing and Urban Development (HUD) or the Federal Emergency Management Agency (FEMA).

If your company has spent PPP funds and is willing to grant a credit reduction, check the credit reduction application and consult the SBA's Office of Small Business Development. The Paycheck Protection Program starts at $1,000 per month, or up to $2,500 per year, for a total of $3,300 per company. The SBA is available to small businesses in the US, Canada, Australia, New Zealand and the UK.

If you are unsure whether you are eligible for SBA debt relief, it is best to contact your lender directly. If there is a question about your company's credit rating, credit rating or credit history, it may be best for you to speak directly to the lender.

Sources
mass.gov | georgia.org | covid19.ca.gov | smartasset.com