Right now, economic fallout from the COVID-19 pandemic is impacting most businesses—especially small businesses. After almost a decade of upswing, the construction industry is getting hit hard as well. Cash flow is an issue, and businesses are doing all they can to stay open. It is a tough and trying time.
Although Builders Mutual is not a lending organization, we are here to walk alongside you during this financial crisis. Here, Steve Vore, CPA, CTP, director of treasury services, provides some practical information and strategic resources to point you in the right direction for mitigating or resolving COVID-19-related financial issues.
Following is a list of resources that address federal and state-specific business loans, including the recently passed CARES Act relief. The information in these links is updated regularly, so you’ll be able to get the most up-to-date guidance.
Loan options for small businesses
- The U.S. Chamber of Commerce provides an excellent business loan guide for general information and insight.
- The Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law on March 27, 2020. Here is an understandable guide to the CARES Act for small business owners.
- U.S. Small Business Administration (SBA) Small Business Paycheck Protection Program
- SBA Expansion of Economic Injury Disaster Loans (EIDLs)
- SBA standard loan programs
- Here’s a great resource from the AICPA on the loan program specifics.
COVID-19 state and locality-specific programs
- Florida – Florida Small Business Emergency Bridge Loan Program
- Maryland – Emergency Relief Grant Fund and Emergency Relief Loan Fund
- Check your governor’s website for more information
One of the best actions to take right now is to consult your CPA or personal bank for standard loan and credit line options. Many banks are offering COVID-19-specific actions and facilitating SBA loans. If you’re hearing that funds are already depleted for SBA loans or that the SBA has a back-log of applications, fill out an application anyway. The programs may receive additional funding.
Overview of the Coronavirus Aid, Relief, and Economic Security (CARES) Act
- Allocates $350 billion to help keep small business workers employed
- Introduces Paycheck Protection Program (PPP)
- Provides 100% federally guaranteed loans
- Loans up to 2.5x the average monthly payroll costs, not exceeding $10 million.
- Loans are forgiven if certain conditions are met
- Application deadline is June 30, 2020
- Expands availability of the SBA’s Economic Injury Disaster Loan (EIDL)
For industry-specific insights on COVID-19 resources, visit the National Association of Home Builders. The NAHB also has a downloadable pdf that provides a great summary of the CARES Act and how it directly impacts our industry’s small business owners. Also, you can always connect with your local HBA for the most specific information relevant to your locality.
Through this crisis—and when we get to the other side—Builders Mutual continues to be your trusted partner. We’ll get through this together.Print