SBA loans provide ample opportunities for small businesses

The U.S. Small Business Administration provides help to small businesses with free business counseling, SBA-guaranteed business loans, home and business disaster loans, and federal contracting. The agency has developed a Coronavirus (COVID-19) Small Business Guidance & Loan Resources webpage with information on all of its related programs, including:

• Paycheck Protection Program — Authorizes up to $349 billion toward job retention and certain other expenses. Eligible recipients may qualify for a loan up to $10 million geared toward businesses protecting their workforce. Businesses that do so may qualify for loan forgiveness on the portion of the loan proceeds used to cover the first eight weeks of payroll and certain other expenses. The Washington Post ran this very informative article about this program. Click here for an information sheet from the SBA and here for the application.
• Economic Injury Disaster Loans and Loan Advances — Allows small business owners to apply for an Economic Injury Disaster Loan advance of up to $10,000 that will not have to be repaid. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can help small businesses overcome temporary revenue losses.
• SBA Debt Relief — Provides a reprieve to small businesses as they overcome the challenges created by this health crisis. Under this program, the SBA will pay the principal and interest of 7(a) loans issued prior to September 27, 2020, for 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. If a small business has an urgent need for cash while waiting for a decision and disbursement of an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.

For more information about these and other SBA programs, click here.

We have put together a comprehensive business-resource guide that includes information about numerous additional local, state and federal resources. Click here for that page.