Hold off on your Small Business Administration (SBA) Disaster Loan Application- There is a better alternative contained in a provision in the recently passed “Cares Act”.
The provision is the Payroll Protection Program. This a $350 billion dollar program specifically dedicated to small businesses. Although the SBA oversees this process, you must apply through a participating bank. Contact your bank to see if they’re part of the program. The program bypasses the SBA loan process and is designed to have a turn-around time of only 36 hours.
In addition, the program requires a minimal amount of paperwork, you will not have to sign a personal guarantee, and there is a loan forgiveness provision that can turn all or part of the loan into a non-taxable grant. There is one caveat, you cannot partake in this program if you have already submitted an application for an SBA Disaster Loan.
So please hold off on applying for a SBA Disaster Loan and contact your bank. To discuss this program, you can contact us at firstname.lastname@example.org or you can reach us at (631) 547-1040. We will be happy to assist you.
Good luck and stay safe!
Diapoules & Feinstein CPAs P.C.