If you run a business or non-profit with less than 500 employees, including a business where you are the sole proprietor/employee, please apply TODAY for an Economic Injury Disaster Loan advance of up to $10,000.  The loan amount can be deposited into your checking account in as fast as 3 days, and does not need to be repaid.

From the SBA.gov website:

Economic Injury Disaster Advance Loan
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.

This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application. This loan advance will not have to be repaid.

Apply for the Loan Advance here.  

The application takes about 15 minutes.  The trickiest questions are:

• What were your gross revenues for the 12 months ending 1/31/2020.  If you don't know January numbers, use the 12 months ending 12/31/2020.

• Cost of Goods Sold for the 12 month period.  COGS is more meaningful for businesses that sell things like shoes or hardware.  For services, take your top line, subtract payroll and profits paid out to owners.  Everything else (rent, marketing, technology) is COGS for service businesses.

• If your business is not incorporated, just use your SS #.

Note: this program only started up this week.  The SBA says that loan amounts will be deposited directly into your checking account 3 days after your application is approved. 

We expect that millions of applications will be submitted this week and next, so we have no idea how fast approvals will go out.  We do know that that faster you submit your application, the faster you'll hear about approval.

On Friday, April 3rd, a broader lending program will open up under the Paycheck Protection Program.  Additional lending is available through the Economic Injury Disaster Loan program.

Independent contractors and self-employed individuals can apply to the program starting Friday, April 10th.

Under certain circumstances, primarily around maintaining headcount and salary levels, some or ALL of these loans can be converted into a grant.

Even if your business is such dire straits that you have already laid off all your staff, you STILL SHOULD APPLY for this loan. 

If your business and hiring resumes by June 30th, 2020, you can still get forgiveness for 100% of the loan.  Even if you cannot restart until later in 2020 or even 2021, the rate of interest is only 0.5%/year, you don't have to pay back the loan for two years, you don't have to pledge collateral and you do not need to provide a personal guarantee. 

In other words, this loan could be the startup capital you need to get back in business 3, 6, 12 months from now.

The Small Business Administration (SBA) will administer the program through existing SBA lenders (virtually every bank.)  YOu should apply first to the bank for which you have your primary banking relationship.  However, for any numbers of reasons, your bank may be slow or unable to process applications, so consider applying to other banks.  

Call us for information about what banks are being most responsive.  We will have that information starting the middle of next week.

If you would like to learn more about how we advise our clients, visit HeronWealth.com or schedule a call with me.

Best regards,
David Edwards, President
Heron Wealth
www.HeronWealth.com

Direct: 347 580-5288
Mobile: 917 705-3893

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