There are several small business loan programs and funding options that have been put in place by the SBA through the Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) due to the COVID-19 pandemic. Below is some information and links to additional resources.
Paycheck Protection Program
The Paycheck Protection Program provides loans for all businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors with 500 or fewer employees, and certain businesses with greater than 500 employees. The program provides businesses with up to $10 million in funding depending on the company’s payroll expenses and other factors. This program will allow for loan forgiveness for some or all of the loan depending on how the funds are used. The SBA published the following information and instructions: PAYCHECK PROTECTION PROGRAM (PPP) INFORMATION SHEET.
Applications for this program will have to be submitted through a bank or an existing SBA lender. The application process is set to open on April 3, 2020 for small businesses and sole proprietorships and April 10, 2020, for independent contractors and self-employed individuals. The SBA has created the application, which you can find here: Application
Economic Injury Disaster Loans and Loan Advance Program
The Economic Injury Disaster Loans and Loan Advance program offers loans of up to $2 million. Applicants may also request an advance of up to $10,000 from the SBA. The loan will be required to be repaid, but the applicants will not be required to repay this advance. Applications for this program are open now. You can find the application here: https://covid19relief.sba.gov/#.
Additional information and resources:
