In a recent segment on Your Money Matters, our managing partner, Chris King, shared valuable insights into the various support options available to small business owners affected by COVID-19. With the landscape rapidly evolving, Chris provided clear guidance on navigating key programs that offer financial relief and protect employee retention.
Economic Injury Disaster Loans (EIDL)
The first option Chris discussed was the SBA’s Economic Injury Disaster Loans (EIDL). Louisiana businesses are now eligible for these loans, which provide working capital to small businesses struggling during the pandemic. This application process, streamlined in recent weeks, allows business owners to secure an advance of up to $10,000, even if the full loan isn’t approved. This advance may also be forgivable, reducing the burden on businesses in critical need.
Families First Coronavirus Response Act (FFCRA)
The FFCRA extends protections that were previously only mandatory for large companies, now covering many small businesses. This act ensures that employees receive necessary paid leave during COVID-19 disruptions, with employers receiving payroll tax credits to offset these costs. Chris emphasized the importance of understanding these provisions and how they benefit both businesses and their employees.
Payroll Protection Program (PPP)
One of the most significant relief options for employers is the Payroll Protection Program (PPP). This loan helps businesses retain employees by covering payroll, rent, and utilities, with the potential for full forgiveness if funds are used accordingly. Chris recommended reaching out to local banks to start the application process, highlighting the importance of accurate record-keeping to ensure compliance.
For additional guidance on these programs or personalized support, contact Next Level Solutions. We’re here to help you make the best decisions for your business during this challenging time.