As the COVID-19 pandemic continues, small businesses across the country are struggling to stay afloat. In response, the U.S. Small Business Administration (SBA) has launched several initiatives to help small businesses survive and thrive during these challenging times. One of these initiatives is the SBA COVID-19 Agreement, which provides much-needed financial assistance to eligible small businesses.
What is the SBA COVID-19 Agreement?
The SBA COVID-19 Agreement is a loan program designed to help small businesses affected by the COVID-19 pandemic. The loan is intended to help small businesses cover their payroll and other operating expenses, including rent and utilities.
What are the eligibility requirements for the SBA COVID-19 Agreement?
To be eligible for the SBA COVID-19 Agreement, your small business must meet the following criteria:
– Your business must have been in operation on February 15, 2020.
– Your business must have fewer than 500 employees.
– Your business must have experienced a significant decline in revenue due to the COVID-19 pandemic.
– You must certify that the loan proceeds will be used to retain workers, maintain payroll, and pay for rent, utilities, and other operating expenses that cannot be deferred.
How much can I borrow through the SBA COVID-19 Agreement?
The maximum amount you can borrow through the SBA COVID-19 Agreement is 2.5 times your average monthly payroll costs, up to a maximum of $10 million. The loan has a fixed interest rate of 1%, and you can defer payments on the loan for up to 6 months.
How do I apply for the SBA COVID-19 Agreement?
You can apply for the SBA COVID-19 Agreement through any SBA-approved lender. The application process is straightforward and can be completed online. You will need to provide documentation to support your eligibility, including payroll records and financial statements.
Conclusion
The SBA COVID-19 Agreement is a lifeline for small businesses struggling to stay afloat during the COVID-19 pandemic. If your business meets the eligibility requirements, you should consider applying for this loan to help cover your payroll and other operating expenses. With the help of the SBA, small businesses can weather this storm and emerge stronger than ever.