The COVID-19 pandemic is having a devastating impact on businesses that are considered non-essential in Montana.
Forced to shut down and no means of bringing in income, non-essential business owners are struggling to pay their bills and in many cases their staff, but the Small Business Administration has been able to step in and provide much-needed loans to help business owners survive the pandemic through a $2.2 trillion COVID-19 rescue package, according to the Missoulian.
Mike Seppala, Western Security Bank division president, told the Missoulian 330 bank lenders from across the state joined a conference call with the SBA to discuss the federal financial aid programs available for their clients.
"All businesses, including nonprofit groups, veterans’ organizations, tribal concerns, sole proprietorships, self-employed people, and independent contractors," all qualify for the Payroll Protection Program, according to the Missoulian.
The business has to have 500 or fewer employees, and the maximum payout is $10 million.
The Economic Injury Disaster Loan is for non-payroll related expenses, according to the Missoulian.
The amount dispersed for this loan is from $10,000 to $2 million with an interest rate of 3.75%.
Borrowers with existing SBA loans can also receive assistance for up to six months, according to the Missoulian.
Gov. Steve Bullock had suspended foreclosures, evictions, and late fees through April 10 to assist borrowers, but Wayne Nelson, Stockman Bank Market president, told the Missoulian a borrower may be able to solve their financial problems by communicating with their mortgage company or landlord.
At this time, the SBA is reporting a lapse in appropriations, and released this statement on their website:
"SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.
EIDL applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis."
Alerts Sign-up