Time to Apply for Small Business Loans and WFCA Can Help
As explained in previous updates, the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act established two loan programs for small businesses: The Payroll Protection Program (PPP)and COVID-19 Economic Injury Disaster Loans (EIDL). Businesses should consider starting the loan process.
Businesses with less than 500 employees can get a PPP loan of up to 2½ times its payroll costs. The loan is forgivable with certain limits. It was initially announced that lenders could begin processing loan applications as soon as tomorrow April 3, 2020. A business can apply for a PPP Loan through an existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Unfortunately, it is being reported that sufficient guidelines and requirements have not yet been established by the Department of Treasury and the Small Business administration for these PPP loans, and there may be a delay of week or longer before application can be processed by lenders.
WFCA is working with its lobbying group, Lobbyit, to provide a quick and easy online application process. Under this program, loans can be processed and the money available within 24 hours. To access this expedited loan application process, WFCA will set up a link on its wfca.org website for members to access the program and apply for a PPP loan. WFCA is working diligently to expedite the process and will immediately advise members of the availability of this accelerated lending program.
In the meantime, members can apply for a COVID-19 Economic Injury Disaster Loans. These loans include an advance payment of $10,000 within 3 days of the loan application. A business can apply for these loans immediately online. A business will need to submit a completed loan application and a signed and dated IRS Form 4506-T giving permission for the IRS to provide SBA access to the business’s tax return information. The loan application can be accessed at https://covid19relief.sba.gov/#/
WFCA’s priority over the last two weeks has been to provide our members with accurate and timely information and assistance during the COVID-19 crisis. This loan program will provide an easy and quick loan process from application to disbursement.