On Friday, the U.S. Small Business Administration released guidance for several small business support programs, designed to quickly get much-needed funding to businesses challenged by the COVID-19 pandemic.
Four key programs heralded by the agency included:
- Paycheck Protection Program: A 2-year, 0.5% interest loan, provided to small businesses to ensure that payroll needs and other critical costs can be sustained through the most challenging time of the crisis. All eligible payroll expenses funded by the loan may be forgiven, as can some costs associated with other areas of operations.
- Economic Injury Disaster Loan Advance: The SBA is advancing a forgivable amount of up to $10,000 for qualified small businesses to support costs associated with the COVID-19 pandemic. Funds are made available within days of an approved application.
- SBA Express Bridge Loans: For those firms who already have a relationship with an SBA Express lender, you may qualify for a bridge loan of up to $25,000 to carry costs while waiting for decisions on other lending products.
- SBA Debt Relief: For businesses with existing SBA loans, you may qualify for deferred payments on certain SBA debt products
For information on all of these programs, reach out to your current lender, or visit the SBA website. If there are other needs we can be supportive of, please don’t hesitate to contact an LDC staff member.