Below is a brief description of just a few Covid-19 relief options available to small business owners.

Economic Injury Disaster (EIDL) Loan Advance

The Economic Injury Disaster Loan Advance (EIDL) is a grant up to $10,000 available to small business owners in all U.S. states, Washington D.C. and territories. The amount of the advance is determined by the number of your employees as of January 31, 2020. The advance will provide $1,000 per employee up to a maximum of $10,000. The advance will be transferred directly into a bank account provided on the application. This is an advance that will not have to be repaid. It is available to sole-proprietorships, independent contractors, and self-employed persons, private non-profit organizations or 501(c)(19) veterans organizations affected by COVID-19. Eligible small business owners can apply online for this grant at sba.gov. The application form is available at covid19relief.sba.gov/#/ .

Small Business Paycheck Protection Program

The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Small businesses are defined as having 500 or fewer employees. The loans are up to 2.5 times the average monthly payroll cost in 2019, or up to $10 million. Funds can also be used to pay payroll, interest on mortgages, rent, and utilities.

Fully Forgiven

Funds are provided in the form of a loan that will be fully forgiven when used for payroll costs, interest on mortgages, rents, and utilities (at least 75% of the forgiven amount must have been used for payroll). No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. The loan forgiveness is not taxable.

Must Keep Employees on the Payroll - or Rehire Quickly

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The business must have maintained the same number of employees through the end of June 2020, otherwise the forgivable loan portion may be reduced. Reductions will also be applied if employees who make less than $100,000 have their compensation cut by more than 25%.

All Small Businesses Eligible

Small businesses with 500 or fewer employees - including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors are eligible. Businesses with more than 500 employees are eligible in certain industries.

How and When to Apply

Any existing SBA 7(a) lender or any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating can give the forgivable loans. Call your bank or financial institution to see if they are participating. The applications can be entered starting April 3, 2020 for small businesses and sole proprietorships. April 10,2020 is when independent contractors and self-employed individuals can apply.

SBA Loans and Debt Relief

There are bridge loans available and debt relief also available through SBA lenders. This should be discussed and applied through your lender.

City of Mount Holly and Belmont North Carolina Emergency Loans

The cities of Mount Holly and Belmont, North Carolina are giving loans to assist small businesses located in their cities. The cities are offering short-term emergency loans to help their local small business weather the Covid-19 crisis.

The City of Mount Holly’s loan is to be used to pay up to three months’ rent or mortgage payments in order to secure the physical location of the business. Loans are in the form of actual payments directly to landlords or lenders. The monthly amount is not to exceed $5,000 per a month for up to three months. The loans will be unsecured with interest accruing at 6.75% per annum with a default rate of 8% per annum. Repayment is over thirty-six months with no payments due for the first twelve months and no prepayment penalties. Mount Holly small businesses can complete an application online at the City of Mount Holly website.

The City of Belmont is offering small business emergency loans to locally owned, non-franchise businesses located within the Belmont corporate limits. Loans will be awarded in amounts up to $10,000 to help cover operating expenses until state or federal assistance is available or until the economic crisis passes. The terms of the loans are thirty-six months, with interest accruing at 7% per annum and will be unsecured. Payments are deferred for the first twelve months, but interest will be accruing during this deferral period. Belmont small businesses can complete an online application with the City of Belmont.