Today, we are ending the 1st Quarter of a new decade with more short term uncertainty than ever before. With the United States government extending Federal Social Distancing Guidelines until April 30th, 2020 (at minimum) the country is officially in a state of Economic Crisis. Most businesses are crippled for the moment as COVID19 is changing the world and has no signs of slowing down, unless there are drastic changes in the way we operate our day to day lives. Vast improvements surrounding healthcare are desperately needed for the world to move past this global pandemic. With that said, it is important to also remember we are in the greatest Nation in the world. During tough times Americans stick together and help one another out.
As a business owner it is very important to make the changes necessary on the areas we can control, and do so immediately. Proactive over reactive is necessary before it’s too late. The state of the economy is not something you will be able to change, but you can still possibly control how your life and the life of your company will look going forward for the next few months and hopefully ultimately beyond.
Thankfully, the United States Government and some state agencies have issued relief funding at little to no interest, or even forgiveness*, to help business owners in the US during these desperate times. The 2 main and largest government loans backed by the SBA/Federal Government are Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program Loans (PPP Loans or known as 7(a) Relief loans). These loans are part of CARES and Keeping American Workers Paid and Employed Act.
The clear cut most desirable of the loans in our opinion is the PPP with **Principal forgiveness opportunities in which a portion of the entire loan essentially becomes a tax free grant if certain criteria are met. There will be no personal guarantees on a portion of the loan and it will generally cover 2.5X average monthly payroll up to $10,000,000. The PPP loan will be available to companies with 500 employees or less, individuals who operate under a sole proprietorship, as well as 501 (c)(3) nonprofit organizations. This is the US government letting out a life raft after the ship has sunk, it’s there for the taking for those fast enough to swim to it. With this, some of us will be able to grab and hold on while others just simply won’t make it.
On the other hand, EIDL loans have some interesting benefits. Loan amortization will be over 30 years and carry an interest rate of only 3.75% for up to $2,000,000. EIDL loans are offered directly thru the SBA and in our opinion should be applying for one immediately before funds run out. The loans are first come first serve, here is a direct link to the application https://covid19relief.sba.gov/#/. You should not need to hire anyone for applying to the SBA as the application is relatively straight forward in our opinion. Please be aware of scams and do not pay anyone a significant sum in return of the hope of “relief money”.
Below is a chart showing the difference of the 2 loans to help you choose which one may be better for your business. We encourage to apply for both in order to best weigh out your options before choosing. In our opinion, it seems the PPP loan will be faster and has better overall appeal for most businesses. You can apply for your PPP loan thru Evolution Capital Group. It is crucial to apply thru credible sources that can handle the rush of applications and ultimately get the job done.
Evolution Capital has never and will never charge upfront fees in connection with a loan. You can schedule a call with an Evolution Advisor by requesting more info from firstname.lastname@example.org. Evolution will only be accepting applications related to PPP loans and our typical financing offered on our website www.evocapitalgroup.com. If we believe you may be eligible for the PPP program an Evolution account will be set up in your name in order to collect proper documentation efficiently, provide you with real time information, and in depth consultative services regarding your businesses future funding.
We would like to Share a video called the Crisis Survival Guide. It’s well worth a good look as it does a great job of giving you the tools/ action plans needed to be proactive during the current situation. Taking action towards the plan outlined by the speaker in the video combined with some extra support from Federal and State programs we believe you are putting yourself in the best position to weather the storm and possibly even thrive.
As always, Evolution Capital is here to help businesses, and their families. Please feel free to contact us and we will do our best to help you achieve your goals. Stay safe and good luck.
Evolution Capital Group Inc.