Business Finance

Small Business Administration Funding Options

The SBA is providing several funding options for businesses affected by COVID-19.

SBA Disaster Loans

Paycheck Protection Program (PPP)

SBA Debt Relief

Express Bridge Loan Pilot Program 

SBA Disaster Loans

The U.S. Small Business Administration (SBA) is offering designated states and territories low-interest Economic Injury Disaster Loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).

The SBA is working to improve their website to handle the increased volume of applicants. For specific questions or assistance in applying, call the SBA hotline at (800) 659-2955.

There are multiple programs available from the SBA.  They are listed below.

ECONOMIC INJURY DISASTER

As of 7/14/2020, the U.S. Small Business Administration announced the conclusion and success of the Economic Injury Disaster Loan (EIDL) Advance program, which provided U.S. small businesses, non-profits and agricultural businesses a total of $20 billion in emergency funding.

Having allocated the full $20 billion that was appropriated by Congress, SBA will discontinue making EIDL Advances to new applicants. By law, the SBA is not permitted to issue new EIDL Advances once all program funding has been obligated.

EIDL loan applications will still be processed even though the Advance is no longer available. As a reminder, the loan portion of the EIDL program continues to have funds available at very affordable terms, including a 3.75% interest rate for small businesses and 2.75% for non-profit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. Every eligible small business and non-profit is encouraged to apply to get the resources they need.

For a video walk through for the application watch this video
https://youtu.be/-Eu1_9U6nUI that was produced by America’s SBDC Missouri!

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

Paycheck Protection Program (PPP)

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive 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 Paycheck Protection Program will be available through June 30, 2020.

You are eligible for a loan if you are a small business that employs 500 employees or fewer, or if your business is in an industry that has an employee-based size standard through SBA that is
higher than 500 employees. In addition, if you are a restaurant, hotel, or a business that falls within the North American Industry Classification System (NAICS) code 72, “Accommodation and
Food Services,” and each of your locations has 500 employees or fewer, you are eligible. Tribal businesses, 501(c)(19) veteran organizations, and 501(c)(3) nonprofits, including religious
organizations, will be eligible for the program. Nonprofit organizations are subject to SBA’s affiliation standards. Independently owned franchises with under 500 employees, who are
approved by SBA, are also eligible. Eligible franchises can be found through SBA’s Franchise Directory.

Sole proprietors, independent contractors, gig economy workers, and self-employed individuals are all eligible for the Paycheck Protection Program.

You can apply for the Paycheck Protection Program (PPP) at any lending institution that is
approved to participate in the program through the existing U.S. Small Business Administration
(SBA) 7(a) lending program and additional lenders approved by the Department of Treasury.

Click here for FAQ’s on PPP.

The U.S. Chamber of Commerce has also created a reference sheet that you may find helpful.  You can view that document here.

The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis.

Under this program:

  • The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
  • The SBA will pay the principal and interest of current 7(a) loans for a period of six months.

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.

Some tips when applying:

To avoid long wait times, try applying or calling during off-peak time