Relief For Ohio Businesses In Face Of Stay-At-Home Order

If your business is not considered “essential” as the term is used by Governor DeWine’s recent (March 22, 2020) stay-at-home order (Ohio Stay-At-Home) in response to the COVID-19 pandemic, it is possible that you and your workers will be absent starting Tuesday morning, March 24, 2020. Of course, the unintended though obvious consequence of this drastic measure is lost productivity, and in some cases, no productivity. Businesses must scramble to determine how to cope with the resulting lost revenues. The Business and Employment Group at Gallagher Sharp is closely monitoring the situation, hoping to provide its clients with any assistance possible during this trying time.

One avenue for relief is the recent availability of The U.S. Small Business Administration (“SBA”) Economic Injury Disaster Loan Program. This program, which existed long before the COVID-19 outbreak, has been made available in some states for businesses impacted by this pandemic. Ohio, fortunately, is one of the states that meet the criteria for the loan, and here are the details:

The loans are relatively borrower friendly, including fixed rates not to exceed 3.750 percent and terms up to 30 years. The loan limits are determined by the SBA, but can be as high as $2,000,000 depending on borrower circumstances, including whether the business is a major source of employment.

There are credit requirements, which include an “acceptable” credit history as determined by the SBA and proof of ability to repay. The loans cannot be used to refinance other long term debts, but rather may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the pandemic’s impact.

For additional information and to start the application process please click here.

Gallagher Sharp LLP is committed to keeping a close watch on the ever-changing landscape for businesses affected by COVID-19 and will continue to publish updates to assist its clients. We will keep you updated, and welcome any questions.