This email is a little out of the ordinary for me, but I was able to be on a national call yesterday with the administrator of the SBA and the Chamber of Commerce, along with 800 other business owners across the country, and some helpful information came out of it regarding help that is or will be available in short order.
I'm working on using a couple of these programs myself, and since it's relevant to me, it's also relevant to you, as we are all small businesses.
As a disclaimer, these are my notes from the call, please be sure to verify as things are changing by the day.
- EIDL (Economic Injury Disaster Loans) Loans- this is an existing program and is now approved for all states, as all states are now declared to be in a state of emergency. These loans are streamlined in process compared to a standard 7a loan, and as of now, do NOT require real estate collateral, which they ALWAYS did prior. Limit of $25 Million, rates are 3.75% (I assume that this is 3.75% + prime, which is how the 7a loans work)
- Grants- These would be awarded even if you were not eligible for the EIDL or PPP loans, and is a one time grant of $10,000. You must apply for either the PPP or the EIDL loan to qualify. They mentioned these a few times, but were a bit short on details. They made it sound like these would be broadly awarded for those that apply.
- PPP Loans (Personal Paycheck Protection Loans)- This is part of the pending legislation, and is up to $10 million in order to maintain payroll and other operating expenses during the outbreak. 8 weeks worth of payroll covered by this loan is forgiven after one year in order to assist businesses in keeping their employees on payroll rather than laying them off.
Other important notes, they are in the process of streamlining the applications to be just 2 pages, making it much simpler.
You can apply for both loan programs, the funds must be for different purposes (I.E. you can’t apply for both and get double funds for payroll, but you can get the EIDL Loan for ongoing things like rent/IT/Phones/etc, and then get the PPP loan for payroll in order to take advantage of the forgiveness program)
The repayment term for these loans is UP to 30 years. Both loans are payment deferred for one year from the date of award.
For existing SBA Loans, disaster loans are currently deferred payments until January 2021, and for 7a loans, they CAN be deferred up to 6 months, preapproved by the SBA (previously it was 3 months, 6 months required additional approval)
Sole proprietors are eligible for these programs in addition to all other business organizations.
More information can be found on the SBA Disaster Recovery site here: https://disasterloan.sba.gov/
And on the Chamber Website here: https://growwithco.com
Finally, there is an excellent spreadsheet with gobs of additional resources if you want to go down that rabbit hole as well. Too many programs to talk about here, but worth a look.
As always, if I can be of assistance during this mess, I'm available by phone or email.
RSVP Bay Area