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COVID-19 Stimulus Series Webinar: U.S. Small Business Administration
Man-Li Lin, Economic Development Specialist, US SBA was the presenter. She presented the two major loan products that US SBA is rolling out to provide relief to small businesses impacted by COVID-19 under the federal CARES Act.
Main takeaways:
- Paycheck Protection Program (PPP)
- SBA-guaranteed loans issued through U.S. banks
- Loan covers up to 8 weeks of payroll costs (capped at $100K per employee), or $10M, whichever is less, as well as rent, mortgage interest, utilities.
- Interest rate 1%, 2-year maturity, first repayment deferred for 6 months
- No collateral, no personal guarantees
- Who can apply: small businesses with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organizations (501c3)
- Loan will be fully or partially forgiven, depending on staff retention and salaries maintenance – option to re-hire to meet payroll criteria
- When to apply: starting April 3 – apply fast (first come first serve)
- Economic Injury Disaster Loans (EIDL)
- May apply concurrently with PPP
- Loan up to $2M, covers fixed debt, payroll, accounts payable and more
- SBA decides loan amount, not the applicant
- Interest rate 3.75% (2.75% nonprofits), maturity 30 years
- Collateral required if loan > $25K
- Who can apply: small businesses with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organizations
- If approved, the loan can be accepted within a 6-month window
- May apply separately for a $10K “bridge” advance (will not have to be repaid)
Information links:
- Go to your bank or find a PPP lender near you: www.sba.gov/paycheckprotection/find
- To apply for EIDL: www.sba.gov/disaster
- To apply for PPP: www.sba.gov/ppp
- Need help to apply? www.sba.gov/localassistance or 800-659-2955
- Additional COVID-19 resources
Upcoming FACC-NY Stimulus Series webinars:
- A detailed PPP calculator will be presented by FACC member Mazars on 4/7, 2-3pm – register here
- CARES Act Overview by FACC member Sheppard Mullin on 4/8, 2-2:30pm – register here
- CARES Act / focus on tax provisions to unlock cash (carryback of NOL and more) by FACC member KPMG on 4/13, 2-3pm – register here
The FACC-NY makes no representations or warranties re: the accuracy of this information. Information published on 4/3/2020, 5:30 PM, subject to evolve with federal rulings. Visit the website of www.sba.gov for the most up to date information and guidance.
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