The CARES Act made two major loan programs available for small businesses. This page will be updated regularly as new information becomes available. Click here for information on stimulus checks. Click here for the SBA website on loan programs.

 

SBA Economic Injury Disaster Loan
  • This is an existing loan program that has been modified due to the virus pandemic.
  • Applies if you have an “economic injury” based on COVID-19.
  • Up to a $10k grant for payroll, mortgage, and a couple other categories of expenses.
  • Anything beyond the $10k is a loan.
  • Up to $2M loan, 30 year term, 3.75% rate based on the amount of “economic injury”.
  • If the loan is less than $200k there is no personal guarantee.
  • Apply directly through SBA:    https://covid19relief.sba.gov/#/
SBA Paycheck Protection Program Loan
  • This is designed to keep people employed.
  • Can be forgiven, but only if the total number of employees is the same from 2/15/20 – 6/30/20.
  • Maximum is the lesser of $10M or 2.5 times your average monthly payroll for 2019. If your monthly average payroll for 2019 was $20k, you would be eligible for a loan of up to $50k.
  • Payments to sub-contractors on Form 1099-MISC count as “payroll” for purposes of calculating the loan amount.
  • These loans are through your local bank.
  • Can be used for payroll, health insurance, rent, and utilities.
  • There are other mechanisms whereby the loan or a portion of it can be forgiven.
  • No payments for 6 to 12 months.
  • 10 year term with interest not to exceed 4%.
  • Funding of these loans should begin next week.
  • Click here for the SBA Interim Final Guidance.