Small Business Administration (SBA) Loan Programs
For Businesses Affected by Covid-19
While we are still in the process of gathering details about the various programs being offered by the SBA to assist America’s small businesses with the COVID-19 pandemic, this is what we do know:
The Paycheck Protection Program (PPP)
The Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed. Visit SBA.gov/Coronavirus for more information on the Paycheck Protection Program.
- The new loan program will be available retroactive from Feb. 15, 2020, so employers can
rehire their recently laid-off employees through June 30, 2020.
- Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
- Maximum loan amount up to $10 million
- Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
- All loans under this program will have the following identical features:
- Interest rate of 1.00%
- Maturity of 2 years
- First payment deferred for six months
- 100% guarantee by SBA
- No collateral
- No personal guarantees
- No borrower or lender fees payable to SBA
- Declared all states and territories eligible for Economic Injury Disaster Loan assistance
- 1-year deferment on Economic Injury Disaster Loans provided due to COVID-19
- Automatic deferment of previous disaster loans for homeowners and businesses through
- Waiver of garnishments through 2020
What can you do now?
- Start gathering information. We will need your most recent IRS Form 941 (Employer’s Quarterly Federal Income Tax Return), a breakdown of you payroll expense from January 2019 through February 2020, and a complete set of your 2019 financials.
For more information about other programs available, visit the SBA:
General SBA Information
Start or expand your business with loans guaranteed by the Small Business Administration (SBA). SBA loans offer a wide variety of financing options.
To find out if an SBA loan would be right for your business, contact one of our lenders today at 800-564-3195.
Benefits of SBA-Guaranteed Loans
- SBA-guaranteed loans generally have rates and fees that are comparable to non-guaranteed loans.
Counseling and Education
- Some loans come with continued support to help you start and run your business
- Lower down payments, flexible overhead requirements, and no collateral needed for some loans.