The Small Business Task Force unveils a $367B in Emergency Coronavirus Relief Package as part of the Keeping Workers Paid and Employed Act, Division A of the Coronavirus Aid, Relief and Economic Security Act, includes:
- $367 billion in lending authority for SBA 7a loans.
- 100% government guarantees on SBA relief loans made though 12/31/20.
- Up to $10mm in loan size, calculated by taking the average total monthly payments by the applicant for payroll, mortgage payments, rent payments, and payments on any other debt obligations incurred during the one-year period before the date on which the loan is made (except for seasonal employees, in which the payroll is based on the average total monthly payments for payroll from 3/1/19 through 6/30/19.
Loan proceeds are only for payroll support including medical leave, costs related to health benefits, employee salaries, mortgage payments, rent, utilities and any other debt payments incurred before the covered period. NO payments for 12 months! Typical SBA guarantee fees waived as well.
A portion (tbd) of the loan will be forgiven, in an amount equal to their payroll cost and costs related to debt obligations for the period from 3/1/20 – 6/30/20. The amount of the forgiveness will be reduced proportionately by the number of employees laid off during the time. It will also exclude employees making more than $100,000 annually from this forgiveness calculation. Lenders must verify payroll costs.
If a client has maxed out their current SBA eligibility at $5m, they can still apply for the CARE Act loan, since the SBA limit is being increased to $10m per business applicant. For more information and assistance with your application, please email
Ralph Russell at Springboard Funding Partners, or call (262) 620-0373. SBA Customer Service Representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process at (800) 659-2955.
