Last Friday new programs and initiatives in the Coronavirus Aid, Relief, and Economic
Security (CARES) Act were enacted that assist small business owners—including those
in the outdoor industry. Much of the relief in this new law address immediate needs like
payroll costs, rent and mortgage payments. Some of the relief comes in the way of
grants and loans, much of which can be forgiven so long as employers retain their
employees. Some of this relief is available now (EIDL loans/grants, see below) and
when it’s all implemented there will be many new resources available for small
businesses, as well as certain nonprofits and other self-employed and independent
contractor individuals.

Under the CARES Act, the Small Business Association (SBA) “7(a) loan” program
will be expanded, enhanced, and streamlined under the new “Paycheck Protection
Program.” During the covered period loans under the Paycheck Protection Program can
be used for payroll costs, costs to continue health care benefits, interest payments on
mortgages and debt obligations, rent, and utilities. Depending on need, loans can be up
to $10M for businesses less than 500 employees. The maximum term is 10 years with a
rate of 4%. The principal of such loan may be forgiven for employers that retain their
employees and maintain their rate of pay during the covered period. Some costs are not
eligible for forgiveness. For more information how to access these loans (known as SBA
7(a) loans), go to this site to see which loan is best for you.

The Economic Injury Disaster Loan (EIDL) program are SBA “7(b)” loans for up to $2
million and are available to small businesses and nonprofits with fewer than 500
employees, including individuals who operate under a sole proprietorship with or without
employees, as well as independent contractors. These loans may be used to pay for
fixed debts, payroll, accounts payable, and other bills that can’t be paid because of
COVID-19 impacts. The interest rate is 3.75% (maximum) for small businesses and
2.75% for nonprofits. Long-term repayments are available, up to a maximum of 30
years. This EIDL program also offers grants that provide an emergency advance of up
to $10,000 to small businesses harmed by COVID-19 within three days of applying for
an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first apply
for an EIDL. The advance does not need to be repaid even if you don’t get the
underlying EIDL loan (but will be considered an advance on that loan if one is awarded
to you). To apply for an EIDL online, please visit https://disasterloan.sba.gov/ela/. Your
SBA District Office is an important resource when applying for SBA assistance.

Unsure what program to tap into? Consider the following questions:
Do you need capital to cover the cost of retaining employees? Then the SBA 7(a)
Paycheck Protection Program might be right for you.

Do you need a quick infusion of a smaller amount of cash to cover you immediately
Consider an SBA 7(b) Emergency Economic Injury (EIDL) Grant.

Worried about keeping up with payments on your current or potential SBA loan? The
Small Business Debt Relief Program could help—contact your nearest Small Business
Development Center.

Do you need some quality, free counseling to help you navigate all this information?
Find local resource partner at https://www.sba.gov/local-assistance/find/.
There are many details regarding how these loans interact with other SBA loan
programs and unemployment insurance. For more information, please visit
https://www.sba.gov.

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