Three Small Business Administration emergency capital programs are available.
- Low interest, long term Economic Injury Disaster Loans – These loans are up to $2 million. The first payment is deferred for 12 months. The application is a simple online application through the web portral at www.sba.gov/disaster. For additional information related to the Economic Injury Disaster Loans see the link.
- Economic Injury Disaster Loan Advance – This is an advance up to $10,000. The form to apply is part of the economic injury disaster loan application. If approved, these funds can be used for payroll and other operating expenses and will be forgiven. For additional information related to the Economic Injury Disaster Loan Advance see the link.
- Payroll Protection Program – This program is designed to help provide capital to cover the cost of retaining employees. If certain criteria are met, the loan can be forgiven. For additional information related to the Payroll Protection Program see the link.
Amounts of Small Business Administration Section 7(a)(36) guaranteed loans that are forgiven under the CARES Act are not taxable as discharge of indebtedness income if the forgiven amounts are used for one of several permitted purposes. The loans have to be made during the period beginning on February 15, 2020 and ending on June 30, 2020.