Program Name:

SBA 7(a) Relief Loans (Paycheck Protection Program)

SBA 7(b) Economic Injury Disaster Loans (EIDL)

Requirements for Borrowing:

- operational on 2/15/20

All small businesses in all of US States and territories are currently eligible

- had employees or subcontractors

to apply for low-interest loans due to COVID-19

- not more than 500 employees per location

- impacted by restrictions related to COVID-19

- no personal guarantees

- no collateral

Max Amount of Loan:

Lesser of $10 million or business's average total monthly payroll

$2 Million

costs which include salaries, insurance premiums, retirement benefits and state

Maximum amount of loan is determined on a case by case basis; 2 Million is not guaranteed.

and local employment tax but does not include compensation

Applicant must be able to certify a lack of working capital by showing a

of employees that make in excess of $100k annually as prorated for the period. 

balance sheet and operating statement pre and post disaster. 

Sum is divided by 12 to arrive at average monthly and then multiplied by 2.5.

The economic injury does not equal the amount of loan.  The SBA will determine the

reasonableness of the request.

Loan Forgiveness:

Borrowers will be eligible to apply for loan forgiveness equal to the amount


spent during the 8 week period after the loan closing date on payroll costs, interest

on mortgages, payments of rent and utility payments in each case that were in

place prior to 2/15/20. Amount forgiven is reduced proportionally by any reduction

in employees retained compared to previous year and by the reduction in pay of

any employee beyond 25% of the prior year's compensation.  Employees with

annualized salary in excess of $100k are not considered in this calculation.

Borrowers who re-hire workers previously laid-off from 2/15 through 4/1 shall not

have those numbers count against them for forgiveness purposes so long as they

are re-hired by 6/30.  Cancelled debt shall not be included in the borrower's

taxable income for this year.

Borrowers must request loan forgiveness from their lender by submitting required

documentation supporting the key expenditures.

Repayment Terms:

Payments of principal, interest and fees will be deferred for at least 6 months on

Repayment terms are determined on a case by case basis. 

any amounts not forgiven.  Interest rate is capped at 4% with loan repayment

Interest rate is 3.75% payable over 30 years.

over 10 years.

No pre-payment fees.

How to Apply:

Through an approved 7(a) lender, start with your own banker to inquire if

Through SBA website

they have an affiliated banking institution that processes 7(a) loans.