SBA's disaster programs spelled out in just a few clicks.
Start with the Paycheck Protection Program and to see forms, etc; then next to Economic Injury Disaster Loans and advance; then next to Express Bridge Loans and then next to Debt Relief for existing and future SBA 7a, 504 and microloan.
The following questions might help point you in the right direction.
Just some quality, free counseling to help you navigate this uncertain economic time? The resource partners are available for virtual counseling sessions.
Frequently Asked Questions
If I am applying or already received an Economic Injury Disaster Loan, is my small business eligible to participate in the Paycheck Protection Program?
Borrowers can apply for BOTH anEconomic Injury Disaster Loan and the Paycheck Protection Program loan.
However, the Paycheck Protection Program loan funds and the Economic Injury Disaster Loan funds cannot be used for the same purpose.
The Paycheck Protection Program loan must be used for payroll (minimum of 75% of the funds received) for it to be eligible for a forgivable loan and the remaining 25% is used for different purposes(mortgage interest, rent, utilities, other services).
Borrowers who accept both loan funds should document the uses of the funds appropriately.
If your Economic Injury Disaster Loan was used for payroll costs, your Paycheck Protection Program loan must be used to refinance your Economic Injury Disaster Loan.
Any advance up to $10,000 on the Economic Injury Disaster Loan will be deducted from the loan forgiveness amount of the Paycheck Protection Program loan.
For example, a borrower may obtain a loan from the Paycheck Protection Program and use those funds to pay for 8 weeks of payroll or employee retention. They may wish to then dedicate their entire EIDL funds towards working capital, notes payable and accounts payable that do not duplicate the funds provided through the Paycheck Protection Program. If the EIDL loan was used for payroll expenses, the borrower must refinance the EIDL loan with the PPP loan which carries a lower interest rate as well as a shorter maturity period.
If you are applying for both, you can accept PPP first – then decide whether or not to close on your EIDL approved loan.
The application period for PPP loans runs through June 30, 2020, but the EIDL application period runs through December 2020.
EIDL Loan advances will start to be distributed this week. $1000 per employee up to $10,000 max
EIDL Loans – IF YOU DID NOT APPLY THROUGH THE STREAMLINED PROCESS WHICH STARTED LAST WEEK, SBA request that you visit https://covid19relief.sba.gov/#/ and reapply with the secure streamlined process. You will not lose your place in queue with your original EIDL loan application.
EIDL loans will not require a personal guarantee for loans under $200,000
EIDL loans will not require real estate collateral for loans under $500,000. SBA will be looking be best available lien priority on all business assets or other business assets.
Counseling Sessions with BOSTON SCORE CHAPTER: If you want to speak with a counselor, SCORE is doing tele-consults. Just pick a date and time to schedule a session and enter your contact info, mentors are doing sessions by phone and Zoom video app.
Reach out to other SCORE CHAPTERS throughout the state below.
Disclaimer: The SBA does not endorse the organizations sponsoring linked websites, and does not endorse the views they express or the products/services they offer. All programs and services are extended to the public on a nondiscriminatory basis.
Do you know a member of the North Andover community who is in need during this time of crisis? Please let them know that help is available! North Andover residents in need of food/supplies can contact Community Support Coordinator, Deanna Lima at firstname.lastname@example.org or call/text 978-989-1048.