The U.S. Small Business Administration has several options to help
While the construction industry in Oregon is currently operating in a reduced capacity with restrictions for social distancing, the impact of the COVID-19 pandemic will not be seen by most contractors in the Pacific Northwest until there is a complete shutdown. The full economic impact will be experienced much later depending on the length of the crisis.
The U.S. Small Business Administration (SBA) is currently offering a loan advance in response to the COVID-19 pandemic. The Economic Injury Disaster Loans and Loan Advance loan application is currently available on the SBA’s website. This loan provides an advance of up to $10,000 to small businesses immediately. If your business needs funds immediately to continue operations, please visit their website for more information and to apply. The application process takes approximately two to three hours.
Click here for additional coronavirus guidance and loan resources available on the SBA website.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act will provide businesses the opportunity to keep employees working in the event of a complete shutdown. The new expanded 7(a) loan program, named the Paycheck Protection Plan, can provide loan forgiveness. Any portion of the loan that is used to pay payroll, utilities, mortgage, and existing business debt may be forgiven dollar for dollar.
If you are interested in taking advantage of this new 7(a) loan program administered by SBA under the CARES Act, you should contact your local banker as soon as possible and ask if they are experienced with 7(a) loan process. Those institutions that are more experienced may have been granted rights to expedite the application process.
It is expected that the SBA will receive an unprecedented amount of loan applications, so please start the process with a lending institution as soon as possible. For more information on the Paycheck Protection Program please visit this site.
Analysis of the CARES Act
AGCA has provided an in-depth analysis of the cares act. Click here for more information.