PPP: Paycheck Protection Program
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
Under this Program:
- Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll 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.
EIDL: Economic Injury Disaster Loan
The EIDL is available to those who qualify both nonprofits and for profit businesses. They have a low interest rate with a max rate of 4%.
Check out the Fact Sheets:
In addition to the SBA EIDL program, other SBA loans that may be able to support you now. SBA loan providers can be found at many local banks. If you need assistance connecting to a SBA loan officer check out Lender Match is an SBA site to introduce applicants with SBA lending partners utilizing our regular loan products.
Do you currently have an SBA loan?
Did you know you can apply for a 90-day payment deferral? Reach out to your lender who helped you secure the SBA loan to obtain the correct forms. Through SBA’s regular policies, SBA participating lenders have some servicing flexibilities where they may be able to work with you on payment deferments, loan modifications, etc.
In addition to traditional commercial lenders, the SBA has micro-lending partners where loans offered range from $500 to $50,000. SBA provides funding to these organizations who then re-lend this money to qualified small businesses. The microloan program may be a fit for relatively small financing needs or in instances where a loan applicant is having difficulty obtaining financing from a traditional lender.
Before the CARES act info … two coming soon boxes (kind of like the survey) for two grants that are coming. I can provide a blurb for each and they will both have applications attached to them.
CARES Act Provides First Round of Relief for Business and Workers
The CARES Act provides $2 Trillion in COVID-19 relief funding, including $377 Billion for struggling small businesses. NPR has summarized impacts here.
The CARES Act may provide relief for your business. The lending programs in the Act are through the Small Business Administration. EDC is here to assist you through this process. Please let us know what questions that you have regarding the loan process. The two business programs are the Paycheck Protection Program and the Economic Injury Disaster Loan.