A High-Level Rundown on How the SBA Can Help Your Small Business Weather the COVID-19 Crisis

Hey there! As an experienced attorney at the Lawscape, I figured I’d take a moment to discuss something pressing – the impact of the Coronavirus (COVID-19) on small businesses. We’re truly in uncharted territory here. Keeping it in check isn’t about pulling up the drawbridge anymore; it has already reached us. The big focus now is on halting any escalation within our neighborhoods.

Interestingly enough, a riveting Washington Post article dug deep into four exciting possibilities to cuff this beast. You can read more about it here.

The COVID-19 Domino Effect on Business and Economy

This wicked virus isn’t just threatening our health. It’s wreaking economic havoc too and might continue to in the long run. We’re trying to prevent a systemic failure like what happened in Italy, where health care was doled out selectively.

But let’s not circle the drain. Lawscape and the rest of us at the Lawscape are here to help you get your bearings in this tumultuous time. So, what does the U.S. government have on the anvil to help affected small businesses navigate these choppy waters?

Here’s What Uncle Sam Proposes

As of March 12, 2020, we’ve got these propositions from President Trump:

– Amping up SBA Funding by $50B.
– Creating Opportunity Zones.
– Passing legislation for SBA COVID-19 Emergency Funding.
– Proposing deferments on SBA 7(a), 504 Business Loans, and Microloans.
– Slicing Payroll Taxes to a neat 0%.

Do these catch your eye? If you’re dealing with the SBA 504, 7(a) or Micro Loans and feeling the heat of restrictions, deferment or forbearance options might just cool things off. Look through these links for more understanding: check out TI Memo 15-20 and SBA Information Notice 5000-20004.

Here’s President Trump’s Game Plan

On Friday, March 13, 2020, President Trump announced that the Small Business Administration is flush with funds to cushion small businesses during this unforgiving outbreak. Check out this video.

Earlier that week, he voiced an ambition to buoy the U.S. economy challenging COVID-19’s grip by ramping up SBA funding by a whopping $50 billion. Sounds impressive, doesn’t it?

The Coronavirus Preparedness and Response Supplemental Appropriations Act

To breathe life into this, on March 13, 2020, the Coronavirus Preparedness and Response Supplemental Appropriations Act (H.R. 6074) was given a thumbs-up and baptized into law. This law earmarks $8.3 billion in fresh funding to boost public health services and lend a hand to businesses grappling with the COVID-19 outbreak’s backlash.

The act has two cards up its sleeve:

– $950 million for public health agencies.
– An estimated $7 billion in loans to small businesses through SBA.

Nydia M. Velázquez, Chairwoman of the House Small Business Committee, believes that these loans could just about replace the pulse in Main Street businesses reeling under the shock of a public health crisis.

You can find more info here about H.R. 6074, check the House Committee on Small Business – Press Release, and learn about the SBA Disaster Loan Program.

Battling Challenges Head-On

If you’re finding yourself against the wall with your SBA loan, struggling with your SBA 7(A) lender, your CDC on your SBA 504 loan or Disaster Loan, don’t worry. Call us right away on 1-212-460-5004. Let’s talk about it.

Our expertise at Lawscape allows us to analyze your challenges stemming from COVID-19 and explore a multitude of solutions while heeding all current laws, federal rules, and regulations.

Choose the Lawscape for Assistance

We’ve pulled businesses from the edge of bankruptcy, saved homes from foreclosure, resolved hefty SBA and Treasury debts with negotiated agreements and compromises. And we’ve done all this without breaking a sweat. We’ve battled the AWG hearings, treasury offset program resolutions, cross-servicing disputes, private collection agency representation. We’re equipped to be your advocate nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service. We’re ready when you’re ready. Let’s face the challenge together!

Speak soon.

– Lawscape and the Lawscape