Small Business Relief Financing for COVID-19

You can get up to a $10,000 grant from the SBA for your small business while you wait for your larger CARES Act Paycheck Protection Program (PPP) Loan or SBA Economic Injury Disaster Loan (EIDL). Click the button below to be redirected to the SBA Disaster Loan Assistance application. 

Small Business Relief Financing for COVID-19

SBA (7b) Economic Injury Disaster Loan (EIDL)

Loan Overview:

The 7(b) loans provide up to $2 million in assistance with an interest rate of 3.75% for-profit companies and an interest rate of 2.75% for non-profits. The loan terms range up to 30 years, and there are no upfront fees or early payment penalties.

Loan information:

  • Payments start 12 months after the date of the contract
  • Funds can be used to business expenses such as pay sick leave for employees who are unable to work due to a direct effect of COVID-19, payroll, materials, rent or mortgage payments, repaying outstanding obligations

Eligibility requirements:

Loans for any business that is affected by COVID-19, has less than 500 employees and was in operation before February 1, 2020, is eligible to apply.

Those interested in applying, must apply before December 31, 2021

Emergency Advance up to $10,000

SBA (7a) Paycheck Protection Program

This is your typical SBA loan which assists small businesses in covering operating expenses. A business can use 7(a) loan proceeds to pay-off a 7(b) Disaster loan. Please note, a business can have both a 7(a) and 7(b) loan at the same time.

Loan Overview:

 

  • The PPP provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. The fund can also be used to pay interest on mortgages, rent and utilities.
  • Payroll costs are capped at $100,000 on an annualized basis for each employee
  • Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—are eligible to apply. Businesses with more than 500 employees are eligible in certain industries.
  • A business can apply for a loan of 2.5 average monthly payroll costs up to $10 million
  • Term up to 2 years
  • Interest Rate: 0.5%
  • Loan payments will be deferred for 6 months
  • No personal guarantee or collateral is required
  • Neither the government nor lenders will charge small businesses any fees
  • An eligible business must apply before December 31, 2021
  • A business is eligible to apply even if the small business is applying to other relief programs
  • No prepayment penalties or fees

 

Loan Details and Forgiveness

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

FAQ SBA Economic Injury Disaster Loan (EIDL 7b)

You can get up to a $10,000 grant from the SBA for your small business while you wait for your larger CARES Act Paycheck Protection Program (PPP) Loan or SBA Economic Injury Disaster Loan (EIDL). Click the button below to be redirected to the SBA Disaster Loan Assistance application. 

Is my business eligible to apply?

Any business that is affected by COVID-19, has less than 500 employees and was in operation before February 1, 2020, is eligible to apply

What is the most amount of money my business may receive?

Your business may receive a loan for up $2 million. The amount of the loan will depend on certain factors (i.e. loss in revenue, payroll costs, rent payments, etc.)

What information is the SBA using to underwrite the loan?

The SBA may approve an applicant based solely on the credit score and shall not require an applicant to submit a tax return or a tax return transcript for approval or the SBA may use alternate appropriate methods to determine applicant’s ability to repay the loan.

What is the interest rate?

For-profit companies: 3.75%  and for non-profit companies: 2.75%

What is the term of the loan?

The loan terms are up to 30 years.

What can I use the loan proceeds for?

You may use the loan proceeds for: payroll costs, salaries, sick leave, to pay rent or mortgage payments, material costs, pre-existing debt.

Is there a personal guarantee?

No, there are no personal guarantees for loans $200,000 or less. There is a personal guarantee for loans >$200,000

Need additional funding with your
Paycheck Protection Program loan?
Get your small business loan today.

Loans Subject to Lender Approval. Depending on the state where your business is located and other attributes of the loan. Your loan agreement will identify the loan issuer prior to your signing. 

* Eligibility for the lowest rate is very limited, available only to businesses with the strongest creditworthiness, and typically businesses that have shown an excellent repayment history on past MCA/ term loan products. The weighted average rate for term loans products is 49.06% APR

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