Paycheck Protection Program
The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The Paycheck Protection Program will be available through June 30, 2020.
SBA Economic Injury Disaster Loan Program
For longer term low-interest financing, the U.S. Small Business Administration (SBA) is accepting applications for disaster loans from small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations.
SBA Economic Injury Disaster Loans offer up to $2 million in economic assistance to help small businesses overcome the temporary loss of revenue resulting from the disaster. 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.
Interest rates offered are as low as 3.75% for businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75. Repayment terms are up to 30 years, and businesses only pay interest on the amount they borrow.
Safer at Home Executive Order
Governor Kay Ivey issued a new “Safer at Home” order on April 28 that went into effect on April 30 and replaced her previous order.