Help for Small Business Owners
Federal Financial Resources:
If COVID-19 has created a cash flow emergency for your business, you may be able to obtain an emergency loan from the U.S. Small Business Administration (SBA) through a program created specifically to address these circumstances. There are 4 primary programs available through the U.S. Small Business Administration and the CARES Act established several new temporary programs to address the COVID-19 outbreak.
1. Paycheck Protection Program – This loan program provides loan forgiveness for retaining employees. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
2. Economic Injury Disaster Loan (EIDL) Emergency Advance – This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. The SBA has approved the state of Texas for access to its Economic Injury Disaster Loan (EIDL) program, which will provide long-term, low-interest loans to qualifying businesses across the state.
3. SBA Express Bridge Loans – allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan.
4. SBA Debt Relief – The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
5. Visit an SBA Local Office – SBA District Offices offer counseling, training and business development to help you start and grow your business
State Financial Resources:
Shared Work Program – As an alternative to layoffs, the Texas Workforce Commission is encouraging employers to enroll in the Shared Work program. A voluntary program, it was developed as a way to help Texas employers and employees withstand a business slowdown, such as occurred due to COVID-19. Under this program, an employer can supplement an employee’s lost wages because of reduced hours worked with partial unemployment benefits. Learn more here.
The Product Development and Small Business Incubator Fund (PDSBI) is a Texas economic program. The fund provides asset-backed financing to companies doing business in Texas through loans with competitive lending rates. Loans can be amortized up to the life of the asset. More information on the loans can be found here.
Loan and Grant Options
Dallas’ Small Business Development Financial Institutions (CDFIs) have developed COVID-19 loan products:
Alliance Lending Corporation can provide fixed-rate loans to for-profit, owner-occupied businesses across the state. The corporation specializes in commercial real estate financing up to $5.5 million. More information, including contact numbers, can be found on the organization’s website.
Carrollton Business Owners – Economic Development Staff is available by phone at 972-466-3299 or by email at firstname.lastname@example.org to assist local businesses and offer guidance. Learn more here.