We wanted to reach out and remind you that there are opportunities now, through the U.S. Small Business Administration to get the financing you need as you begin your operations for the upcoming season.
It’s important for you to act urgently. The loan programs that were passed as part of the CARES Act last week by the Congress and signed into law by the President are first come, first served. That means if you wait, you may miss out on opportunities.
There are three primary loan programs available to you:
The SBA 7(a) loan program
The SBA’s economic injury disaster loan (EIDL) program
The newly created Paycheck Protection Program (PPP).
Of course, you can find all of the information on these programs from the CARES Act on our Save Our Fireworks website by clicking here.
SBA 7(a) Loans
The 7 (a) loan program is the primary SBA loan program for providing assistance to small businesses like fireworks importers, distributors, wholesalers and retailers. You can learn more about the SBA 7(a) loan program here.
SBA Economic Injury Disaster Loans (EIDL)
SBA EIDL loans are a form of federal assistance to rebuild and repair non-farm small businesses in the private sector that suffer economic hardship after disasters. EIDL loans can be up to $2 million. You can learn more about the EIDL program as it relates to COVID-19 by clicking here. You can find a link to the application or an EIDL loan here
SBA Paycheck Protection Program (PPP)
The SBA’s Paycheck Protection Program is a newly created program in response to the COVID-19 outbreak. It defines the loan period from February 15, 2020 until June 30, 2020. The maximum amount of a PPP loan can be up to $10 million and allows the principle amount to be used for payroll support including employee salaries, paid sick or medical leave, insurance premiums, along with mortgage, rent and utility payments.
· Sole proprietorships, independent contractors and the self-employed
· Businesses in specific industries that have 500 or fewer employees per location.
You can download a streamlined application for an SBA PPP loan here.
So as we move through this crisis, NFA is here to continue to remind you that there are resources to keep your business strong and our industry thriving. Consult your banker for more specific information and remember this is time sensitive and that these loans are first come, first serve.
Thank you for your continued partnership with the NFA and it’s our pleasure to serve as a resource for you as we all come together in this difficult time.