Small Business Support to Deal with COVID-19 Impacts to Your Business

As a result of COVID-19’s serious public health risks, businesses small and large have been impacted negatively. Congress has provided new authority for Small Business Administration (SBA) loan and grants, including the following:

• Paycheck Protection Program provides loans for up $10 million determined by the prior 8 weeks’ average payroll plus 25% of that amount. Payments of this loan will be deferred for 6 months. And if you maintain your workforce, SBA will forgive the portion of the loan proceeds used to cover the first 8 weeks of payroll and some other expenses. The CARES Act authorized $349 billion for this program. This program applies to small businesses, generally. Application information here.
   
• Economic Injury Disaster Loans for eligible small businesses (generally under 500 employees) up to loan amounts of $2 million (cap determined by payroll calculation) for a wide variety of purposes, including, payroll and commissions, insurance premiums, mortgage interest payments, rent, utilities, and interest on other debt incurred prior to January 31, 2020. Apply on-line.
   
• SBA Debt Relief will pay the principal and interest of new 7(a) loans issued prior to September 27, 2020 and will pay the principal and interest of current 7(a) loans for a period of six months. This is not a deferment, but actual debt forgiveness. SBA will automatically apply.

SBA Express Bridge Loans are available to address urgent needs for cash for up to $25,000 while a small business waits for decision and disbursement of an economic injury disaster loan. These are available to small businesses who currently have a business relationship with an SBA Express Lender.