Date: Apr 28, 2020
Category:

Please review the most recent updates on the COVID-19 small business (less than 500 employees) loan programs offered by the U.S. Small Business Administration (SBA).

Paycheck Protection Program (PPP)

Update: Monday, April 27

As of 7:30 a.m. PT, Monday, April 27, the SBA has resumed accepting PPP applications from participating lenders. The loans are processed on a first-come, first-served basis, so act now.

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program.

You should consult with your local lender as to whether it is participating. All loans will have the same terms regardless of lender or borrower.

Click here to find eligible PPP lenders.

Click here to access the borrower application form.

Click here to determine how to calculate maximum loan amounts.

About the Program

The PPP provides small businesses with funds in the form of loans that will be fully forgiven when used to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

Economic Injury Disaster Loan (EIDL) Program

Update: Monday, April 27

With the additional funding provided by the new COVID-19 relief package, SBA will resume processing EIDL Loan and Advance applications that are already in the queue on a first come, first-served basis.

The SBA will provide further information on the availability of the EIDL portal to receive new applications, including those from agricultural enterprises, as soon as possible.

Click here to monitor the SBA website for announcements on when the EIDL portal will be available to new applicants. Apply directly to SBA using this portal.

 

About the Program

The SBA is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).

The SBA’s Economic Injury Disaster Loans offer up to $2 million in loans that may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses.

The SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

For questions, please contact the SBA disaster assistance customer service center at 1-800-659-2955 or e-mail  disastercustomerservice@sba.gov.

WG Staff Contact

Cory Lunde
Senior Director, Strategic Initiatives & Communications
949-885-2264

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