The CARES Act was passed to ease the economic suffering associated with the Coronavirus pandemic. We will show you how to get COVID-19 Loans for your small business by taking advantage of what this act has to offer. The most recognizable part was the stimulus payment of $1,200 per adult plus $500 per child you may have already received. However, there is more to this than that.
What is the CARES Act?
The Coronavirus Aid, Relief, and Economic Security Act was passed by Congress and signed into law by President Trump on the 27th of March 2020. It also created an option for small business. The EIDL is also known as the Economic Injury Disaster Loan. The Small Business Administration runs and offers this loan with a current interest rate of 3.75%, with part of the loan being eligible for forgiveness.
Here’s what you need to apply:
- The account number and routing number to your bank account.
- You may not have over 500 employees.
- Your gross revenue for the twelve months prior to the pandemic, or January 31, 2020.
- The cost of goods sold for the twelve months prior to the pandemic, or January 31, 2020.
- Rental properties, enterprise cost of operation, other forms of compensation, etc.
- It costs $0 to apply.
You may click here to begin an application. We recommend using a trusted accountant or bookkeeper to help you apply if you have trouble.
How to Get COVID-19 Loans for the Self Employed
The CARES Act also established the Paycheck Protection Program for those who are self-employed. The PPP loan is designed to be a loan that last for two years with a 1% interest rate. The good news is you may qualify for up to 100% forgiveness on your PPP loan. The program is run through credit unions and banks that choose to participate. We recommend going to your bank or credit union first to see if they offer PPP loans for convenience. It is easier if you also have a separate business checking account for your self-employed business.
Those of you who have difficulty finding a bank have other options. You may apply directly at the Small Business Administration directly. Visit the sba.gov website to find an office in your area. Those of us in Houston can visit this branch:
U.S. Small Business Administration
9301 Southwest Freeway
Suite 550
Houston, TX 77074
(713) 639-5000
You may have to call first for an appointment and to see what documentation you should bring. SBA approved lenders in the area may also be able to help. Give them a call to see if they take PPP loan applications. We recommend starting with smaller banks and credit unions, as they are most likely to accept applications from those who aren’t current customers.
How to Get COVID-19 Loans for Small Business in Houston
Feel free to contact us if you live in the Houston area and need help with your books.
