Resources for small businesses

REGION — The Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law on March 27. In addition to providing unemployment for Americans who are out of work because of the novel coronavirus (COVID-19) pandemic, the $2.2 trillion package allocates $350 million to help small businesses keep employees on the payroll. This program, known as the Payment Protection Program, is just one of the many resources available to small business owners during this crisis.

Payment Protection Program

Provides 100 percent federally guaranteed loans to small businesses that maintain payroll during the COVID-19 pandemic

These loans may be forgiven if borrowers maintain their payrolls, or restore them after the crisis has ended

Some applicants who may be eligible include small businesses, nonprofits and veterans organizations with fewer than 500 employees, independent contractors, sole proprietors and self-employed individuals

The loan can be up to 2.5 times the borrower’s average monthly payroll costs, not to exceed $10 million

Borrowers are eligible for loan forgiveness based on what they spent on items like payroll, interest on a mortgage, rent on leasing agreement, payments on utilities, additional wages to tipped employees

For more information about the Payment Protection Program, including how to calculate your business’s payroll costs, visit www.bit.ly/USChamberInfo. 

Loans can be applied for through a Small Business Association (SBA)-approved lender. The list of approved lenders is currently in flux, but you can check with your local bank, or visit www.sba.gov for updates

Economic Injury Disaster Loan Emergency Advance

An EIDL is a lower interest loan of up to $2 million, used to help borrowers pay for operating expenses which they cannot pay themselves due to a disaster

Due to COVID-19, SBA is providing an emergency advance of up to $10,000 through EIDL

The advance does not need to be repaid under any circumstance

First apply for a standard EIDL, then request an advance

Apply for a loan through the SBA at www.bit.ly/applyfordisasterloan.

Local and regional resources

The list of programs and resources is constantly changing, “Information is outdated hours after it comes out,” as Lisa Burns of the Greater Honesdale Partnership said when asked about this topic. Instead of publishing information that might be incorrect by the time you see it, here is a list of local organizations that are actively updating their websites with information and resources.

Sullivan County Chamber of Commerce, www.catskills.com

Wayne Economic Development Corporation (WEDCO), www.wayneeconomic.com

Northeastern Pennsylvania Alliance, www.nepa-alliance.org

Pursuit Lending (formerly New York Business Development Corporation), www.pursuitlending.com

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