• 1979 ESTABLISHED
  • 72 MUNICIPAL CLIENTS
  • 30-40 SINGLE AUDITS ANNUALLY
  • 45+ NONPROFIT CLIENTS
  • 1 LOCAL OFFICE PLEASANT HILL
  • 0 LAWSUITS

Expanded Small Business Loans

Apr 8, 2020

Paycheck Protection Program (PPP) https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp

UPDATE: SBA has reached the spending limit for the first CARES ACT. Many banks are still accepting applications in hopes for additional funding to be approved.

  • Funds are provided int the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent & utilities
  • At least 75% of the forgiven amount must have been used for payroll. Loan payments will also be deferred for 6 months
  • Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.
  • Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease
  • All Small businesses eligible
    • 500 or fewer employees – including non-profits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships and independent contractors are eligible
    • Also certain businesses with more than 500 employees may also qualify
  • Small businesses are eligible to borrow up to 250% of their average monthly payroll expenses up to a total of $10,000
  • The amount is intended to cover 8 weeks of payroll expenses and any additional amounts of making payments towards debt obligations
  • The 8 week period may be applied between February 15, 2020 and June 30, 2020. Seasonal business expenses will be measured using a 12 week period beginning February 15,2019 or March, 1 2019

Economic Injury Disaster Loans and Loan Advance https://www.sba.gov/disaster-assistance/coronavirus-covid-19

  • Up to $2 million in assistance
  • These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%
    • If you already have an EIDL loan for payroll it is possible to refinance to a PPP loan above.
  • The SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay
  • The loan advance can provide economic relief of up to $10,000 within three days of a successful application. This loan advance will not have to be repaid

SBA Debt Relief Program

  • The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
  • The SBA will pay the principal and interest of current 7(a) loans for a period of six months.

SBA Express Bridge Loans

  • Allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. 
  • Can be used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan
  • Up to $25,000
  • Fast Turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan
  • To apply contact your local SBA office https://www.sba.gov/local-assistance/find/?type=SBA%20District%20Office&pageNumber=1

Archives by Month: