Salon Owners: Grants & Loan Programs To Help Your Business Now!
Federal Financial Programs To Help Your Business
Did you know an Emergency Economic Injury Grant can give your business much-needed cash—AND it doesn’t have to be paid back?! Keep reading to get all of the info you need to take advantage of this financial benefit, plus learn about a loan repayment program that’ll help you pay back your existing loans!
We recently broke down everything you need to know about the Payroll Protection Program, a federal resource that helps you keep (and pay!) your staff—Click here to learn everything!
Economic Injury Disaster Loans (EIDL) and Emergency Economic Injury Grants
What is it? Any business affected by disaster can apply for an Economic Injury Disaster Loan (EIDL), which must be paid back. Businesses affected specifically by COVID-19 can also apply for Emergency Economic Injury Grants, which will front you $10,000 of the EIDL that won’t need to be paid back.
Who can apply for it? Any small business that has less than 500 employees, independent contractors and self-employed workers can apply for an EIDL. To apply for the Emergency Economic Injury Grant, loan applicants must also have been in business since January 31, 2020.
Some key takeaways:
- EIDLs are low-rate interest loans of up to $2 million dollars to cover expenses that would have been paid under normal business conditions.
- Loan applicants can request the Emergency Economic Injury Grant, an advance of up to $10,000 on the loan, that does not need to be repaid.
- Emergency Economic Injury Grants are available from January 31,2020 through December 31, 2020.
- Businesses can apply for both Payroll Protection Program loans and the Economic Injury Disaster Loan. However, grant advance amounts (up to $10,000) will be subtracted from the total PPP loan amount and funds CANNOT be used for the same expense.
For example: If you use funds from a PPP loan to pay for April payroll, you CANNOT also use funds from an EID loan for the same expense.
Where To Apply
You can apply for Economic Injury Disaster Loans online—click here to get started. Once you’ve applied for the loan, you can request the Emergency Economic Injury Grant advance.
Small Business Relief Program
What is it? This program ensures that the Small Business Administration will assist with existing non-disaster SBA loans by covering loan expenses for up to six months.
Some key takeaways:
- This program helps with existing 7(a), 504 and micro-loans.
- New loan applicants are eligible for this program within 6 months of the bill being signed into law.
- The SBA will cover up to 6 months of all loan payments including:
- Principal payments
- Interest payments
- Fee payments
- If you apply for a PPP loan, deferment payment options are already built into the loan terms.
Contact your SBA loan financial lender to discuss your options.