SBA Disaster Assistance - Loan Options for Businesses Impacted by COVID-19
If your business has been impacted or is suffering substantial economic injury because of the Coronavirus COVID-19 pandemic, we are here to help. To better understand the options available to you, we have created the following guide which outlines important information regarding the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).
Paycheck Protection Program (PPP)
As part of our on-going efforts to support our customers during these uncertain times, Lakeland Bank will be a participating lender in the U.S. Small Business Administration (SBA) Paycheck Protection Program which is part of the Coronavirus Aid, Relief and Economic Security (CARES) Act. We will continue to share updates regarding this assistance program as it becomes available, pending further guidance from the SBA which is anticipated to be available in the coming days.
Although details are still being finalized, some documentation may be required when applying for a program when it becomes available. Based on the legislation, it may be helpful for interested business owners to gather the following information about their business:
- 2019 Payroll — including the last 12 months of payroll
- 2019 Employees — 1099's for 2019 employees and independent contractors that would otherwise be an employee of your business. (Note: Do NOT include 1099's for services)
- Healthcare costs — all health insurance premiums paid by the business owner under a group health plan
- Retirement — your company retirement plan funding paid for by the company
Please check back for the latest updates and how to apply.
Economic Injury Disaster Loans (EIDL)
If your business has been impacted or is suffering substantial economic injury because of the Coronavirus COVID-19 pandemic & is located in a declared disaster area, you may be eligible for a low-interest disaster assistance loan through the Small Business Administration (SBA). These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.
Follow this link for information and how to apply through the SBA.
New Jersey Business Portal
In addition, New Jersey has created a website for businesses to find resources. There is a chat bot (live chat) where you can ask questions and receive answers in a timely manner. Businesses may also call 1-800-JERSEY-7.