The Federal Government is set to implement legislation that would allow more money to flow once again to small businesses affected by COVID-19–$322 billion more including $60 billion set aside for smaller lenders like community banks and credit unions.
$60 billion of new money is also included for the EIDL disaster loans administered by the SBA.
The hope is that together with the first CARES Act, this legislation should be enough funding for about eight weeks of pay for every small business in the nation.
So how can small businesses prepare?
- If your business did not apply yet, get ready to apply. Sample applications and advice are available from the US Chamber and US Treasury. Some banks will allow you apply now, even though the current fund is temporarily out of money until this bill is signed by the President. Follow up with your bank.
- If you haven’t already, use this time to identify the bank you plan to apply with. Identify a fallback bank/credit union/lender as well, just in case.
- If your business applied but did not get approved by the SBA, it’s alright. Your place in line is held. You should hear back from the SBA by next week. There is no need and no benefit to apply again; you would only be harming those who haven’t applied yet.