During the COVID-19 pandemic, the Paycheck Protection Program (PPP) was established to aid small businesses. The program was initially introduced in April 2020 with $349 billion in funding, but it quickly ran out of money due to its immense popularity. In late April 2020, Congress approved an extra $310 billion for the program, and in December 2020, another wave of funding was authorized. Even though the program’s stated termination date was May 31, 2021, some small firms can still access cash.
Small enterprises can apply for grants from the federal government, states, corporations, and foundations, among other sources. Federal grants are supplied by federal government agencies, and they are often given to companies who are engaged in R&D or have a particular objective. State grants are offered by state governments and are often given to companies working on missions or economic development projects. Corporations offer corporate grants, which are often given to companies working on initiatives that support the corporation’s objective. Private foundations offer foundation grants, which are often given to companies working on initiatives that support the goals of the foundation.
During the COVID-19 epidemic, the Economic Injury Disaster Loan (EIDL) program was also established to aid small enterprises. Businesses who have experienced financial harm as a result of the pandemic can apply for low-interest loans through the program. Congress approved further financing for the program in December 2020, even though the program’s declared termination date was December 31, 2020. The program is still accepting new candidates as of August 2021. Can I Pay Myself From an EIDL Loan as Well?
You can pay yourself as a business owner using EIDL funds, yes. You are limited in how you can use the funds, though. EIDL money cannot be used to settle personal debt or to make mortgage or other personal loan payments. The money can only be used for operational costs like rent, utilities, and other business-related costs like payroll.
Micro, Small, and Medium-Sized Enterprises (MSMEs) can borrow money from a variety of banks. State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank are some of the finest banks providing MSME loans. These banks provide a selection of loans with affordable interest rates and adaptable repayment terms. It’s crucial to take into account aspects like interest rates, loan amounts, repayment schedules, and eligibility requirements when selecting a bank for your MSME loan.
In conclusion, even though the PPP was supposed to cease on May 31, 2021, some small enterprises can still access finance. Additionally, the EIDL program is currently accepting new applications, and as a business owner, you are permitted to utilize EIDL funds to pay yourself. Consider banks like State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank while searching for an MSME loan. As always, before applying, it’s crucial to carefully review the terms and conditions of any loan or grant program.