There are so many different repercussions from the unprecedented COVID-19 pandemic. Small business relief is at the top of the government’s agenda. It’s estimated that some 30 million US small businesses may fall victim to the coronavirus through closures, cancellations and other revenue losses. With no clear end in sight, the Small Business Administration (SBA) is offering eligible businesses low-interest disaster relief loans to cover operating expenses.
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. The interest rate for non-profits is 2.75%. In order to keep payments affordable, they are offering long-term repayments, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
For more information on areas currently eligible for SBA disaster relief and to apply for a loan, visit the SBA website at https://www.sba.gov/disaster-assistance/coronavirus-covid-19 or call the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail firstname.lastname@example.org. Small business relief is a key component of the nation’s economic recovery.
If you are a small business owner, this is also a good time to review your business succession plan. Integrating your business with your personal estate planning is a critical part of planning for your family’s future, and one which is often overlooked. Making sure there is a buy-sell agreement in place when appropriate, and making sure it is properly funded, should be at the top of your to-do list. Chicagoland businesses may face challenges in the coming days, but the need for proper planning is greater now than ever. Using life insurance properly, choosing a day-to-day manager for your business, and deciding who is involved in business decision making are all key issues which need to be addressed with your family and your attorney.
Resources: SBA Disaster Assistance in Response to the Coronavirus.