The CBIZ COVID-19 Loan and Capital Assistance team is here to support you, as you navigate the challenges to your business posed by the coronavirus pandemic and its after effects.
Several funds were made available to help companies navigate their financial hardships and maintain their operations during the COVID pandemic. Whether you are seeking assistance with emergency relief under the CARES Act, applying for SBA loans or the Paycheck Protection Program, the Main Street Lending Program, debt restructuring assistance, guidance on loan modifications, or looking for other capital assistance, we are here for you. Most of these loan programs have now ended but if you took out PPP loans you may still have to apply for loan forgiveness and we can provide assistance.
COVID-19 & Capital Assistance Solutions
Most of the stimulus programs from the CARES Act to help individuals and businesses with economic assistance due to the COVID-19 pandemic have ended. The Main Street Lending Program (MSLP) was terminated on Dec. 31, 2020, and the last day to apply for a PPP2 loan was May 31, 2021.
The Economic Injury Disaster Loans (EIDL) had been extended to Dec. 31, 2021 but with the new Infrastructure Investment and Jobs Act (IIJA) legislation signed into law on Nov. 15, 2021, the lawmakers repurposed unused COVID-19 relief funds from the CARES Act to pay for the new infrastructure legislation. The new law also shortened the period for the Employee Tax Retention Credit (ERTC).
Your focus now shifts from accessing any remaining fundings opportunities to completing loan forgiveness for PPP2 loans and submitting for ERTC. You still have other financing options and it is better to be proactive instead of reactive for your financing needs. Factors such as inflation, supply chain disruptions, higher interest rates, future COVID restrictions on your business, and a multitude of other unknowns make having your possible financing and funding needs in place of critical importance.
Other SBA Loans
- SBA 7a, SBA Microloans, and Express Loans: Receive a maximum loan amount of $10 million are available to eligible businesses based upon formulas using payroll costs and other factors. Personal guarantees are waived during the covered period, and loan forgiveness is possible if certain criteria is met.
- SBA 504 Loans: Access maximum loan amounts of +$20 million are available to businesses for hard assets such as equipment and improved real estate. Amortization terms of 10 years for equipment and between 20 to 25 years for real estate.
Now that most of the government lending programs initiated during the COVID pandemic have ended, you may need to go back to traditional sources of funding your business, operations and paying for capital expenditures. You may also need to restructure your debt and convert floating interest loans into fixed as we enter an inflationary environment with higher interest rates.
Alternative Financing Options
There are other non-traditional financing options based on your cash flow needs, such as unsecured loans. For those businesses with lendable assets, there may be alternate types of financing available, such as asset-based loans. There are still federal, state and local grants and funding programs that you might be eligible for depending on your situation, location, number of employees, and industry.