COVID-19 Resources and Guidance for Businesses

2020-04-06T14:19:30-04:00 April 6th, 2020|

SBA PROGRAMS AND RESOURCES

You can also find this information on EOHED’s webpage with resources for businesses.

  1. The Paycheck Protection Program (PPP) is a loan program designed to provide a direct incentive for small businesses to keep workers on the payroll. Businesses and nonprofits employing fewer than 500 people can apply. Importantly, the SBA will forgive PPP loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The program will be available retroactive from February 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020. Loans can be up to $10M, with a 1% interest rate and a 2-year maturity; there are no payments for the first six months.

Key Points for Interested Businesses:

  • Contact your lender to learn if it is participating in the SBA PPP program.
  • If you don’t have an existing SBA lender, use the SBA’s online Lender Match Tool to identify a lender in your area. (Please note: this tool is not currently available; we will keep close track and let you know when it’s live again.)
  • Please expect delays and be patient as lenders work to implement the guidance released just last night (Thursday, April 2nd).
  • We will make you aware of all updates related to the PPP program as we receive them.
  1. The Economic Injury Disaster Loan Advance is a Loan Advance of up to $10,000 that is available to applicants who have been approved for an Economic Injury Disaster Loan; it does not need to be repaid, so business owners can think of the Advance as a grant for business expenses.

Key Points for Interested Businesses:

  • You can apply for this Loan Advance when you apply for an Economic Injury Disaster Loan (EIDL) or after you submit a loan application to EIDL.
  • Declined EIDL applicants may still be eligible to receive an Advance.
  • Visit the SBA’s website to submit an application for the Economic Injury Disaster Loan and Loan Advance programs.
  1. The SBA is also offering Debt Relief to small businesses. Under this relief, the SBA will pay the principal and interest for six months beginning March 27th, 2020 for qualifying new and current holders of 7(a) loans. Businesses who already have a covered 7(a) SBA loan or receive a 7(a) SBA loan prior to September 27, 2020 will receive this relief.

Key Points for Interested Businesses:

  • Reach out to your SBA lender to discuss how this relief applies to an existing loan or to discuss applying for a new 7(a) loan.
  • Again, expect delays and be patient as lenders work to get the programs stood up.