At Scorpion we understand that every business out there is facing an uncertain future right now.
One of the things that we want to make sure of is that everyone applies to the assistance that is currently being offered. One you can do immediately, the
other is part of the stimulus program that should be going live any day now.
IMMEDIATE – APPLY FOR THIS TODAY:
Economic Injury Disaster Loan (EIDL)
This is now available in all 50 states.
Apply via: sba.gov/disaster
What is it?
EIDLs are loans of up to $2 million that carry interest rates up to 3.75 percent for companies and up to 2.75 percent for nonprofits, as well as principal and interest deferment for up to 4 years. Definite deferment through 12.31.20.
The loans may be used to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.
With the EIDL (and a rider to the stimulus package) business get a $10,000 grant within three days of applying for the loan.
The EIDL grant does not need to be repaid, even if the grantee is subsequently denied an EIDL, and may be used to provide paid sick leave to employees, maintaining payroll, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments. Eligible grant recipients must have been in operation on January 31, 2020. The grant is available to small businesses, private nonprofits, sole proprietors and independent contractors, tribal businesses, as well as cooperatives and employee-owned businesses.
The timeline on payment for the loan itself is 21 days once accepted.
$10K Grants will be available in 3 days after application (after stimulus approved).
Used to cover overhead expenses.
Run through SBA, NOT BANKS.
3.75%, up to 30 years
1-4 year deferment on interest and principal
AVAILABLE TO ANY BUSINESS TYPE
AFTER STIMULUS IS PASSED:
Paycheck Protection Program (PPP)
This is meant to be included in a SBA Loan (typically 7A), but it may be available as a stand-alone program. Right now count on it as part of a loan.
Must be ran through a bank.
The loans are going to be 10 years at 4%
Deferment of 6 months of interest, principal.
No fees on loan (which is a big benefit, actually).
Meant to be directed towards those who do not have other credit option primarily.
Expedited approval process (hopefully).
The main part of the PPP that will be advertised is that your operational expenses will be forgiven within the loan for eight weeks. The intent is to keep people employed.
For simple math, say it costs $10,000 per week to run your business (payroll, utilities, rent) and you get a loan for $250,000 from your bank.
In effect, you would actually owe: $250,000 – ($10,000 X 8) = $170,000.
Your business received a $250,000 loan, but it only owes $170,000, paid over 10 years!
Get with your bank on this, you want to be first in line – not last.
I hope this helps. If you have any questions, please email COVID19@ScorpionCoatings.com
I will do my best to help you as fast as I can. We appreciate the business of the thousands of customers that use our products out there and want to do everything we can to help your businesses while you take care of your families.