If you are a business owner and have been affected by COVID-19 follow these steps for financial protection during this uncertain time.
I suggest prioritizing in the order below. Do not delay in taking action. It is important to get in "line" for the resources and to make your decision once you are approved. There is a lot of information out there about what to do and when to do it. I strongly recommend taking action before it is too late. These steps will guide you with focus and prioritization.
- File a business interruption (BI) claim with your general liability insurer. This will most likely get rejected. You will possibly need this to show proof of your attempt. I have heard that the SBA may require this as well as your landlord or mortgage lender.
- This step is easy to take by contacting your insurer or insurance agent but will most likely take time for them to process because of the amount of claims they are processing.
- Contact your landlord or business mortgage lender for relief options.
- They are in this with you and need to know what is going on with your business.
- Contact your debt holder(s) for relief options.
- Be prepared to wait for a response. They are dealing with the virus as well. Once you receive a response you will most likely have to submit an application for assistance.
- Contact your banker about bank resources.
- I have been impressed with the responsiveness from local banks. Do not neglect contacting yours.
- Streamlined Application for SBA Disaster Loan - EIDL (Economic Injury Disaster Loan)
- Website Link
- This is a streamlined process that gets you in line for the loan.
- Completing this application also provides you the opportunity to receive up to a $10,000 grand direct deposited into your business bank account. The grant is an advance of the EIDL and may be forgiveable.
- Payroll loan - PPP (Paycheck Protection Program)
- Complete Full Application for SBA Disaster Loan - EIDL (Economic Injury Disaster Loan)
- Website link.
- Here you will download the necessary forms and complete them in their entirety to submit your information for complete loan approval.
- You will need these forms/docs.
- Form 5
- Form P-019
- SBA Form 413D
- IRS Form 4506-T (Fill out one for personal, both of you. You will need another for the business)
- SBA Form 2202
- SBA Form 1368
- 2019 Business Tax Return
- You will download these forms and fill them out then upload them to the SBA site. This will give the SBA your complete information to be able to process your loan fully.
- Unemployment for business owners.
- This will be done through your state. Contact your state's unemployment office.
- Article link. This article explains how business owners and the self employed can take advantage of the stimulus package.
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This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.