As we all know, small businesses have been hit hard by mandatory closures, regulatory challenges and other safety measures required to slow the spread of the coronavirus (COVID-19). PaymentVision supports all of our clients, including our small business clients and wanted to take time to point out some of the most current programs available to help.
Below is a list of possible support that small businesses affected by this pandemic should consider and possibly if needed, pursue.
Paycheck Protection Loans: The U.S. Small Business Administration (SBA) will guarantee loans with terms of up to 10 years and interest rates of up to 4% to businesses with fewer than 500 employees. Businesses can qualify for loans of up to $10 million, and the loans will be provided by lenders including banks and credit unions. Eligible businesses can get loan deferment for six months to a year, and the loan may be forgiven if the businesses maintains its payroll for eight weeks at employees’ normal salary levels.
Expanded access to U.S. Small Business Administration Economic Injury Disaster Loans: As part of its disaster assistance program, the U.S. Small Business Administration (SBA) is providing working capital loans of up to $2 million to small businesses and nonprofits affected by the coronavirus. These loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits. Loan repayment terms vary by applicant, up to a maximum of 30 years. The stimulus updated the program so that sole proprietors and businesses with fewer than 500 employees qualify, and applicants don’t need to provide a personal guarantee on loans under $200,000. Payments can also be deferred for up to four years.
Emergency grant of $10,000 to SBA Economic Injury Disaster Loan applicants: Even if your business is denied a loan, you can still access this grant, which can be used to provide employee sick leave, maintain payroll or meet other needs like paying rent.25% of that amount.
We also want to make sure you maintain your ability to collect and process payments safely, securely and in a compliant manner. This requires all of us to continue to operate within the regulatory guidance and the operating instructions from the card associations. While PaymentVision continues to stand by its promise to assist all we can it is important to remind all that under the terms of the card processing agreement, card transactions may not be used for any purpose other than as payment for its goods or services. Cash advance to procure operating funds is not authorized and an attempt of such could terminate a merchant’s ability to process cards.
If you would like to learn more, contact PaymentVision at 1-800-345-PAID.