We know that business owners may already be heavily impacted by COVID-19 due to partial or complete closure of their businesses. As Congress and state governments continue to seek ways to help employers and their employees,
there are resources to help now
.
One current
resource
is
through the U.S. Small Business Administration. SBA Economic Injury Disaster Loans
(EIDL)
offer up to $2 million in assistance for eligible small businesses
and nonprofit organizations.
T
he
se
low-interest loans
may be used to pay fixed debts and accounts receivable as well as cover payroll and other bills that can't be paid due to COVID-19 business disruption.
The interest rate is 3.75% for small businesses and 2.75% for nonprofits.
Long-term repayments up to a maximum of 30 years help to keep payments affordable, with terms determined on a case-by-case basis and the borrower's ability to repay.
Alabama's Small Business Development Center Network (ASBDC) offers guidance and resources on how to apply for EIDLs. Visit
http://asbdc.org/
to view guidance
on business continuity and a
new
loan application webinar. Or call 1-877-825-7232.
Your CPA at Anglin Reichmann Armstrong is
also
here to help you plan your cash flow strategy for now and in the future. Contact us with your questions.
