You may have multiple SBA loans but only one PP loan and one EIDL per business. Applicants are required to have a Social Security Number or EIN number. Here is a current list and summary of each SBA disaster loan programs available.
Economic Injury Disaster Loan (EIDL)
Economic Injury Disaster Loan (EIDL) Advance
Paycheck Protection Program (PPP)
SBA Debt Relief
SBA Express Bridge Loan
EIDL-
How much can I borrow?
• Eligible entities may qualify for loans up to $2 million.
• The interest rates for this disaster are 3.75 percent for small businesses
and 2.75 percent for nonprofit organizations with terms up to 30 years.
• Repayment will start 12 months from date of the note
• No pre-payment penalties
How can I use the loan funds?
• Payroll costs, salaries, sick leave
• Rent or mortgage payments
• Material costs
• Pre-existing debt
EIDL Advance-
Any entity that is eligible to apply for a COVID-19 Economic Injury
Disaster Loan is eligible for the loan advance
• Up to $10,000
• Will be deposited within 3-5 business days
• No requirement to repay advance, even if denied for a disaster loan
• Applications submitted prior to March 30,2020 need to reapply at the new portal for the Advance.
PPP-
Eligibility (in operation 2/15/2020)
o Under 500 employees, or over 500 but small by size standards
o Tax-exempt nonprofits 501(c)(3)
o Veterans organizations 501(c)(19)
o Tribal concerns
o Sole proprietor, independent contractor, self-employed (4/10)
Purpose
o Payroll, interest on mortgage, rent, utilities
o Forgiven if used substantially for payroll – some requirements
SBA Debt Relief-
Eligibility
o Current 504, 7(a) and Microloan borrowers are eligible
o New 504, 7(a) and Microloan loans between 3/27/2020 and 9/26/2020 are also eligible
o Size Standards - https://www.sba.gov/document/support--table-size- standards
Loan Specifics
o Size of loan, interest rate, term, fees, use of proceeds, and collateral are determined by the
loan program
o Information on SBA loan programs ins Resource Guide-ov/sites/default/files/files/resourceguide_3122.pdf
SBA Express Bridge Loan-
Current customers of SBA Express Lenders are eligible
o Apply with Express Lenders - https://www.sba.gov/sites/default/files/articles/SBA_Minnesota_Expre
ss_Lenders_March_30_2020.pdf
o Loan amount up to $25,000 for up to 7 years
o Interest rate is Prime +6.5%
o Guarantee fee – 2% on guaranteed portion of loan
o Use for working capital
o Collateral not required
o Personal guaranty is required
o Lender can require loan to be repaid with disaster funds.
o https://www.sba.gov/funding-programs/loans/coronavirus-relief- options/sba-express-bridge-loans
Business hasn't stopped, and your Chamber hasn't either. We're all in this together.......Stay healthy!
