COVID-19 resources for businesses

It is an extraordinarily challenging time to be a business owner right now. The Coronavirus Aid, Relief, and Economic Security (CARES) Act has provided several options for individuals and businesses to manage finances through the COVID-19 pandemic, but it can be hard to know where to begin. Below is information and resources you can use to help you bridge the gap between now and what’s next.

U.S. Small Business Administration (SBA) Paycheck Protection Program

The CARES Act allocated $349 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100 percent federally guaranteed loans to small businesses. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. The administration soon will release more details including the list of lenders offering loans under the program. In the meantime, the U.S. Chamber of Commerce has issued a guide to help small businesses and self-employed individuals prepare to file for a loan.

To access the application for the Paycheck Protection Program, click here.

SBA Economic Injury Disaster Loans

The SBA is offering 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 or territory governor, SBA will issue under its own authority, as provided by the CARES Act, an Economic Injury Disaster Loan declaration. Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available statewide to small businesses and nonprofit organizations to help alleviate economic injury caused by the COVID-19. This will apply to current and future disaster assistance declarations related to COVID-19. SBA’s Office of Disaster Assistance will coordinate with the state or territory governor to submit the request for Economic Injury Disaster Loan assistance. For details of this program, please click here.

For detailed information about all of the CARES Act programs designed for Small Businesses, click here.

What can I do today to make sure my business stays strong?

1. Contact your banker if you are experiencing or expect to experience cash flow issues. We are here to help and have stayed current on the programs that have been put in place to support your business through these times.
2. Plan for the next three to six months. We do not know how long this situation will continue, so you will want to plan for the potential lengthening or expansion of the Safer-at-Home requirements, as well as how you will manage the recovery and reopening of your business should you need to close.
3. Gather the documentation you will need to provide to a lender to prepare for a loan application, including for loans created through the CARES Act.
   1. Not sure what documentation you will need? Contact your banker.
   2. Even if you do not believe you will need a loan, be prepared in case the current situation goes on longer than expected.
4. Do not draw on lines of credit unnecessarily. The financial system remains stable and has plenty of liquidity, so it is best to keep excess cash in insured financial institutions like Park Bank, and to maintain your lines of credit until you absolutely need to access them.
5. Be patient. Your bank wants to help you through these unprecedented times, but it can take time to put new programs in place.