The new law includes Corporations, Partnerships, Sole Proprietors and Certain Non- Profits.
Applies to all businesses with fewer than 500 employees.
There are 2 basic SBA loans that business can apply for. You are NOT allowed to file for both due to concerns of double dipping.
- Paycheck Protection Program (PPP)—Apply through Local lenders.
a. Provides 100% guaranteed loans to cover specific operating costs.
b. Max loan is 250% of the average monthly payroll costs
c. Interest capped at 4%
d. Lender fee varies on size of loan, 5% for $350,000 or less, $350,000-$2,000,000 =3%
e. Other restrictions on spending apply.
- Emergency Injury Disaster Loans (EIDL) – Apply directly to SBA.
a. EIDL has option for $10,000 cash advance within three days of application that does not have to be paid back even if your application is subsequently rejected.
Please send an email if you are interested in discussing further and we will schedule a time to discuss. Please note our email volume is up due to the crisis and will likely take us at least 24 hours to respond.
SBA Coronavirus Website which has details for each of the programs mentioned above.
COVID-19 Small Business Guidance Loan