The Small Business Association today sent out an email outlining several new programs that businesses impacted by COVID-19 may take advantage of. They include:
Paycheck Protection Program
SBA's PPP authorizes up to $349 billlion in forgivable loans to help small businesses pay their employees (for an eight-week period following the loan's issuing). Small businesses and sole proprietorships can begin applying (through any existing SBA lender) April 3, 2020, and independent contractors and self-employed individuals can apply starting April 10. Stipulations to receiving the loans include using the proceeds for specific expenses (i.e., payroll, mortgage interest, rent, and utility costs) and maintaining employee compensation levels. You can find more information on the program here, or at SGA.gov.
7(a) Borrower Relief
SBA's Borrower Relief program will pay businesses' prinicpal and interest on current 7(a) loans, as well as all new 7(a) loans issued before Sept. 27, 2020. SBA is sending additional information directly to lenders.
Economic Injury Disaster Loan Advance
Earlier this month, we learned about the Economic Injury Disaster Loan program for small business affected by COVID-19. Today SBA announced the Economic Injury Disaster Loan Advance, an advance worth up to $10,000 to be given to businesses affected by COVID-19; and it will not have to be repaid. Even if your application for a disaster loan is still under review or was even rejected, you can still be eligible for the advance—which will be made available three days after approval. Businesses can apply or find more information at sba.gov/disaster.
SBA Express Bridge Loans
Businesses that already have relationships with SBA Express Lenders can request a $25,000 bridge to cover the time between applying and approval for an Economic Injury Disaster Loan.