Through the CARES Act funding, the Small Business Administration (SBA) has four new temporary programs to address the COVID-19 outbreak for businesses that qualify.
1. Paycheck Protection Program (PPP) – With this loan, employers can cover payroll costs as well as rent, mortgage interest, and utilities. The maximum loan amount is 2.5 times the borrower’s average total monthly payroll costs, not to exceed $10 million. This loan program provides deb forgiveness for retaining employees. Eligible employers can apply for the PPP loan through an SBA-authorized lender starting April 3, 2020 thru June 30, 2020.
2. Economic Industry Disaster Loan (EIDL)- Eligible businesses can borrow up to $2 million if they can show a financial impact or loss directly related to COVID-19. The EIDL loan can be used to pay fixed debts, payroll, accounts payable and other bills that otherwise could not be paid due to COVID-19. This loan can be applied for directly via the SBA website, and the application includes an opportunity to get a $10,000 advance within a few days. The loan advance will not have to be repaid.
3. SBA Express Bridge Loans – The bridge loans allow small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
4. SBA Debt Relief - As part of SBA's debt relief efforts, the SBA will automatically pay the principal, interest, and fees of current 7(a) loans for a period of six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a) loans issued prior to September 27, 2020. We understand this a deferral of debt service payments and not a forgiveness of loan payments.
To learn more about the relief options available go to the SBA web page click here
Thank you for being a valued client and for your continued trust as we manage through this difficult time together. If you have any questions or need further assistance, please call us at (800) 830-2551 or email us at firstname.lastname@example.org.