Monday, March 30, 2020

Why Retailers Should be Applying for CARE's Act Forgivable SBA Loans

Based on multiple conversations, just about every retailer that I spoke with over the last 2 weeks is seeing negative effects on their sales numbers due to the Coronavirus.  As part of the stimulus package passed last week, most small retailers will qualify for a forgivable short term loan from the SBA to use for 10 weeks worth of payroll and related expenses.

The stipulations and application process appear to be very simple and streamlined. Although, I'm sure that the SMA will be flooded with requests once the application process can begin in the next 1-2 weeks.

Given that this is a forgivable loan that can help keep your store afloat for the next 10 weeks, I'd encourage all retailers to watch for more information from their local SBA office.

Preliminary information can be found here:

At this time, it appears that the loan can only be used for payroll, utility and rent related expenses - not for technology related investments. Still, a forgivable loan is something that should not be ignored if it can keep your staff paid and cover some other expenses until you can fully open up again.

I'll watch the SBA website for more information as well and see when they area ready to start processing applications.

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