COVID-19 Loan Programs

COVID-19 Loan Programs

Small Business Administration (SBA)

The Small Business Administration offers several options to small businesses as they overcome the challenges created by this COVID-19 health crisis. Created in 1953, the U.S. SBA is the only cabinet-level federal agency fully dedicated to small businesses, providing counseling, capital, and contracting expertise.

To learn more about available Coronavirus relief options, please visit the SBA website.

 

CARES Act – The Coronavirus Aid, Relief, and Economic Security Act

Update May 15, 2020 – The SBA released the Paycheck Protection Program (PPP) Loan Forgiveness Application. This application will help small businesses seek forgiveness at the conclusion of the eight-week coverage period, which begins with the disbursement of the loan.

To download the application and instructions, click here.

The Paycheck Protection Program (PPP), was signed into law March 26, 2020 and allocated up to $349 billion toward job retention and certain other expenses to help small businesses keep workers employed amid the pandemic and economic downturn. As of April 27, 2020, another $320 billion had been allocated to the program.

 

What are the specifics?

The PPP is an extension of the Small Business Administration 7(a) program and provides 100% federally guaranteed loans to small businesses. As Of May 15, 2020 there were more than $100 Billion in PPP Funds Still Available.

  • Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll costs plus an additional 25% of that amount.
  • Loan payments will be deferred for six months.
  • If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
  • No collateral or personal guaranty is required. Interest is no more than 4% and repayment, if required, can be over a period as long as ten years.

 

Which businesses are eligible?

  • Small businesses, sole proprietors, independent contractors, self-employed persons, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, and Tribal businesses
  • Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
  • Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
  • Sole proprietors, independent contractors, and self-employed persons

 

Where do I go to apply?

Like the SBA Loan Guarantee Program, the SBA doesn’t lend money directly to small business owners for the Paycheck Protection Program. Contact your bank or find a lender using the SBA lender finder tool.

 

SBA Disaster Assistance Loan and Advance

Update: At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.

The Small Business Administration’s Economic Injury Disaster Loan (EIDL) program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

Small business owners in all U.S. states are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.

 

What are the specifics?

  • EIDLs are lower interest loans of up to $2 million
  • To access the advance, you first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance.
  • May be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.

 

Which businesses are eligible?

Small businesses, and most private non-profit organizations with fewer than 500 employees. This includes:

  • Businesses directly affected by the disaster
  • Businesses that offer services directly related to the businesses in the declaration
  • Other businesses indirectly related to the industry that are likely to be harmed by losses in their community

 

Where do I go to apply?

At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.

 

Frequently Asked Questions

Can I apply for both the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP)?

Yes, however, the PPP loan funds and the EIDL funds cannot be used for the same purpose. The Paycheck Protection Program loan must be used for payroll (minimum of 75% of the funds received) for it to be eligible for a forgivable loan and the remaining is used for different purposes. Borrowers who accept both loan funds should document the uses of the funds appropriately.

 

How do I check the status of my Economic Injury Disaster Loan (EIDL) and/or my EIDL Advance application?

Contact the SBA Office of Disaster Assistance Customer Service Center at 1-800-659-2955 or vog.absnull@ecivreSremotsuCretsasiD.

 

 

 

 

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