Protecting your small business and your employees during the current COVID-19 medical event is our first priority. We are here to help you navigate this uncertain time and keep you informed. We are monitoring daily developments and have a detailed plan to ensure we can continue providing critical financial resources.
Today, we would like to update you on new details from the Small Business Administration (SBA). Our primary source of information is from the SBA website and their page, Coronavirus (COVID-19): Small Business Guidance and Loan Resources. We will monitor new developments from the SBA and other government program partners. Below, you will find current and pending programs with the SBA.
The recent legislative passing of the Coronavirus Aid, Relief and Economic Security (CARES) Act is intended to assist business owners with current financial needs to assist their efforts of working through this medical and economic event.
Economic Injury Disaster Loans and Loan Advance (EIDL Loans)
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application. EIDL loan application link. You will be working directly with the SBA.
Paycheck Protection Program (PPP) Loans
Final SBA rules are pending on this program. The legislative intent, subject to the SBA finalization, would provide cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this crisis with employees of 500 or less. PPP has several attractive features, such as forgiveness of up to 8 weeks of payroll based on employee retention and salary levels, no SBA fees, and payment deferral for up to 1 year. These loans will be available through June 30, 2020.
This program is currently pending, but we expect finalization in the next few weeks. Reliable resources have led us to believe this program will be primarily handled through your local Commercial Loan Officer.
SBA Debt Relief
The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this medical event.
Under this program:
- The SBA will 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
This program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. SBA Express Bridge Loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue many are experiencing and can be a term loans or used to bridge the gap while applying for direct SBA Disaster Assistance.
- Up to $25,000
- Fast turnaround
- Will be repaid in full or in part by proceeds from the EIDL loan
You may find an Express Bridge Loan Lender by connecting with your local SBA District Office.
We recognize this is a challenging time for our small business owners and their employees. We are here for you. Our Team of Commercial Loan Officers stand ready to assist you. Please contact your Commercial Loan Officer directly or reach out to our Customer Care Center at 855-CRESCOM (855-273-7266) to be connected with a local Commercial Loan Officer.
Submitted by: CresCom Bank