COVID-19 Relief and Support
While “small” businesses are generally defined as those enterprises with 500 or fewer employees, baking industry enterprises may still qualify if they employ more than 500 employees. SBA utilizes NAICS codes to identify what qualifies as a small business, below are a few relevant thresholds to bakeries:
“An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.”
These loans, established under the CARES Act, are fully forgivable if conditions are met.
Notable loan stipulations:
- Loan money can be used for payroll, rent, mortgage interest, utilities.
- Borrowers are allowed to choose which 24 weeks loans will count towards between the period of February 15 and December 31.
- Payroll costs must comprise at least 60% of loan spending in order to be eligible for full forgiveness.
Please note the Paycheck Protection Program has ended as of August 8, 2020. Check back here for the latest in continuation developments.
***ABA Recommends you reach out to the lender you used for your PPP loan in regards to applying for forgiveness***
“This loan will provide economic relief to small businesses and non-profit organizations that are currently experiencing a temporary loss of revenue.”
All 50 states and Washington, DC have been declared “disaster zones,” making your business eligible for this funding program. Loans can be up to $2 million with a forgivable $10,000 advance.
“The Federal Reserve established the Main Street Lending Program (Program) to support lending to small and medium-sized businesses and nonprofit organizations that were in sound financial condition before the onset of the COVID-19 pandemic.”
The Main Street Lending Program will enhance support for small and mid-sized businesses that were in good financial standing before the crisis by offering 4-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5 billion. Principal and interest payments will be deferred for one year. Firms that have taken advantage of the PPP may also take out Main Street loans.