Federal & MA Small Business Assistance Programs for COVID-19

Both the U.S. Federal Government and the Massachusetts State Government have put forth Small Bussiness Association (SBA) assistance programs for businesses dealing with the impact of COVID-19. Below is information on both programs. If you have any questions on eligibility please do not hesitate to contact your ALL advisor.

Federal SBA Assistance

The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration.

Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small businesses and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by the Coronavirus (COVID-19).

SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance per small business and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.

SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

Visit SBA.gov/disaster for more information and to apply for assistance.

Massachusetts  SBA Assistance

The Baker-Polito Administration announced economic support for small businesses with a $10 million loan fund to provide financial relief to those that have been affected by COVID-19.

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.

How to Apply:

Please complete the application found on MGCC’s website: EmpoweringSmallBusiness.org. Completed applications can be sent via email to mgcc@massgcc.com with the subject line “2020 Small Business Recovery Loan Fund”.

Loan Fund Details:

-Open to Massachusetts-based businesses impacted by COVID-19 with under 50 full- and part-time employees, including nonprofits.

-This fund is being offered with no payments due for the first 6 months, then 30-months of principal and interest payments and no prepayment penalties.

-Businesses can apply for loans up to $75,000.

Please visit EmpoweringSmallBusiness.org to learn more.

ALL CPS is Here to Help Small Business Owners

For over 60 years ALL has partnered with small business owners to guide them through every stage of their business. With COVID-19, we know many small business owners are being confronted with unprecedented circumstances and we are here to help. If you have any questions about applying for either of these programs or any other question about your business, please contact your ALL tax advisor or call us at 617-738-5200.