SBA Disaster Assistance in Response to the Coronavirus

Coronavirus (COVID-19): Small Business Guidance & Loan Resources: To alleviate the economic impact of the coronavirus on both individuals and businesses, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act on March 27. The legislation provides economic assistance to small businesses.

SBA ECONOMIC INJURY DISASTER LOANS:

Businesses can apply to SBA for an Economic Injury Disaster Loan up to $2 million to cover working capital expenses such as fixed debts, payroll, accounts payable, and other expenses that could have otherwise been paid if not for the COVID-19 pandemic. While terms are negotiated on a case-by-case basis, interest rates are generally 3.75% (small business) and 2.75% (nonprofit) with repayment periods up to 30 years. Before you apply, read our latest post for all the key basics, from definitions to application tips.

AREAS ELIGIBLE FOR SBA DISASTER LOANS

The U.S. SBA has recognized Tennessee as a declared state for Coronavirus (COVID-19) disaster assistance. If your business has been impacted, you can now apply at no cost for a disaster assistance loan. Search Disaster Declaration areas here.

ECONOMIC INJURY DISASTER LOANS AND LOAN ADVANCE:

To apply for a COVID-19 Economic Injury Disaster Loan, click here.

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.

The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.

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.

Click here to learn more.

SBA EXPRESS BRIDGE LOANS:

Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.

Terms

  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan

Find an Express Bridge Loan Lender by connecting with your local SBA District Office.