The SBA Economic Injury Disaster Loan (EIDL) Program – Small businesses, private non-profit organizations of any size and cooperatives can apply for this loan. These funds can be used as working capital to help organizations make payments—payroll, rent, debt service payments—that they would have made had the crisis not occurred.
- Low interest – 3.75% interest rate for for-profit businesses and 2.75% rate for nonprofits
- Long loan terms – up to 30 years
- 12 month payment deferral (although interest accrues)
- Expedited loans for under $500k & don’t have to upload tax returns (private nonprofits must submit tax returns)
- Approximately one month processing time
- Up to $2 million
The Economic Injury Disaster Loan Advance is a Loan Advance of $10,000 that is available to applicants who have been approved for an Economic Injury Disaster Loan; it does not need to be repaid, so the Advance is a grant for business expenses. Apply here.
The SBA also announced Express Bridge Loans that provide up to $25,000 in emergency financing for disaster-related purposes. A business must have an existing relationship with the lender, either from a current loan or if the business is awaiting longer-term financing from the EIDL program.
The SBA is also offering Debt Relief to small businesses. Under this relief, the SBA will pay the principal and interest for six months beginning March 27th, 2020 for qualifying new and current holders of 7(a) loans. Businesses who already have a covered 7(a) SBA loan or receive a 7(a) SBA loan prior to September 27, 2020 would qualify. Discuss with your SBA lender.
The SBA has established a toll-free line to answer questions at 1-800-659-2955 Monday to Saturday 8am to 8pm.
Governor Charlie Baker issued an emergency order requiring all businesses and organizations that do not provide “COVID-19 Essential Services” (click link to see a list of qualifying organizations) to close their physical workplaces and facilities to workers, customers and the public as of Tuesday, March 24th at noon until Tuesday, April 7th at noon. Businesses on the list of essential services may continue operating and businesses who wish to request an exception may do so request an exception may do so here.
The Baker-Polito Administration announced on 3/19 administrative tax relief measures for small local businesses which have been impacted by the ongoing COVID-19 outbreak, especially in the restaurant and hospitality sectors. This tax relief includes postponing the collection of regular sales tax, meals tax, and room occupancy taxes that would be due in March, April and May so that they will instead be due on June 20. Additionally, all penalties and interest that would otherwise apply will be waived.
- Businesses that paid less than $150,000 in regular sales plus meals taxes in the year ending February 29, 2020 will be eligible for relief for sales and meals taxes, and business that paid less than $150,000 in room occupancy taxes in the year ending February 29, 2020 will be eligible for relief with respect to room occupancy taxes.
MA Department of Unemployment Assistance is conducting virtual town hall presentations most weekdays to help people with new unemployment claims due to the covid-19 outbreak.
MA State WorkShare Program The WorkShare program is an alternative for employers faced with a cut in workforce. Employers can divide available work between affected employees instead of laying off workers. It allows employees to receive a part of their unemployment insurance (UI) benefits while working reduced hours.
Massachusetts has waived the one-week waiting period for filing unemployment claims for those individuals whose workplaces have closed due to the Covid-19 outbreak.
Mass Growth Community Capital – No longer accepting applications. The $10 million Small Business Recovery Loan Fund will provide emergency capital up to $75,000 to Massachusetts-based businesses impacted by COVID-19 with under 50 full- and part-time employees, including nonprofits. Loans are immediately available to eligible businesses with no payments due for the first 6 months. Massachusetts Growth Capital Corporation (MGCC) has capitalized the fund and will administer it.