SBAC provides more details on Disaster Loan Programs

Our friends over at SBAC shared some links and documents that you can help answer some of your questions on the various options.. The first link below is being updated by SBA HQ constantly as new information becomes available.

SBA COVID-19 Relief Programs:    https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-2

The 3 different relief programs including:

1.      “EIDL” loan program (up to $2M with $10k upfront to cover expenses while they wait for a loan decision on the EIDL, up to 30 year term @ 3.75% for profit companies and 2.75% for non-profits)

2.      SBA Express Bridge Loan Program (up to $25k- processed by SBA Express lenders, quick turnarounds, if “EIDL” is approved those funds will payoff SBA Express Bridge loan)

3.      Paycheck Protection Program (PPP) (loans up to $10M, 2year term @0.5% interest, available through June 30, 2020, SBA will forgive loans if all employees are kept on the payroll for eight weeks (after disbursement) and the money is used for payroll, rent, mortgage interest, or utilities. 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.

EIDL Loan application: https://covid19relief.sba.gov/#/  (If you applied more than 2 days ago, have them re-apply to be considered for the $10k, you will not lose their place in line for EIDL).

SBA Express Bridge Loan: Please contact an SBA lender to see if they are participating in this program. Any SBA Express lender can originate and fund these loans.

Paycheck Protection Program (PPP): https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp  Applications are not yet available, but you can prepare using this sample.

Loan status check: SBA Disaster team has 5,000 to 7,000 customer service representatives answering: SBA’s Customer Service Center: 1 (800) 659-2955 or email [email protected]

Completed paper applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX  76155

Hope this helps you better understand the available programs, where to go to provide updates and how to apply for each.