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Help in Tough Times For Gyms, Studios, Educational Facilities…
by Patrick Craig
Help in Tough Times For Gyms, Studios, Educational Facilities…
Many Money Movers clients are facing a crippling disruption in their facility use due to the Coronavirus (COVID-19) outbreak. On Friday, March 27, 2020, the President signed into law the CARES Act, which contains $376 billion in relief for American workers and small businesses.
In addition to traditional SBA funding programs, the CARES Act established several new temporary programs to address the COVID-19 outbreak. We would advise out clients to look into these programs as they are designed specifically to assist you in moving through the economic hardships brought by lockdown orders and social distancing guidelines in place in many states.
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Paycheck Protection Program
This loan program provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program. The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
Here’s how it works. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. It’s very easy to apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. Check with your bank to see if it is participating in the program. If not, ask for a recommended lender.
Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.
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EIDL Loan Advance
Small business owners in all U.S. states, Washington D.C., and territories that are currently experiencing temporary difficulties due to the COVID-19 crisis 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 following a successful application. This loan advance will not have to be repaid.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19. By definition this emergency funding is available to most small gyms, studios, educational facilities and medical offices, business types which comprise the bulk of our clients.
The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid.
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SBA Express Bridge Loans
These loansallow small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster Loan. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
These loans ca provide up to $25,000 in funding, with a very fast turnaround. You can repay your bridge loan in full or in part by proceeds from the EIDL loan
To find out complete details about these opportunities, check out the SBA website at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
Patrick Craig has worked in the Marketing Industry for the past twenty years. He is a published author and has written extensively about the fitness industry, particularly the gym software aspect of it. He has been with Money Movers, Inc. for the last six years where he serves as the Marketing and Operations Manager, web designer and coder, and maintains the custom websites Money Movers, Inc. develops for their Online Business Manager gym software clients.
