SBA: Coronavirus Relief Options and FAQs

Massachusetts District Office – April 2020

u s small business administration

Don't know where to get started?

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.

Do you need:

Capital to cover the cost of retaining employees?
Then the Paycheck Protection Program might be right for you.

A quick infusion of a smaller amount of cash to cover you right now?

To ease your fears about keeping up with payments on your current or potential SBA loan? The Small Business Debt Relief Program could help. 

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 an Economic 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.

Please direct all inquiries and questions to our District Office email at:

MassachusettsDO@sba.gov


WHERE DO I GO NEXT?

FREE and confidential counseling services are available across the Commonwealth. 

 

Virtual education, training and networking sessions are happening daily.

 

Please schedule a virtual session with any of our Resource Partners below…

Email


Resource Partner Network

CWEWomen's Business Centers

 

Eastern Massachusetts Center – Boston
44 School St., Suite 200
Boston, MA 02108
info.EasternMA@cweonline.org

Central Massachusetts Center – Westborough
69 Milk St., Ste. 217
Westborough, MA 01581
info.CentralMA@cweonline.org

Veterans Business Outreach Center of New England (VBOC of NE)
132 George M. Cohan Blvd.
Providence, RI 02903
info.VBOC@cweonline.org


MSBDC

WE ARE OPEN FOR BUSINESS!

Staff are working remotely and can be reached via email or telephone. MSBDC is committed to supporting entrepreneurs during these very challenging times.

Request for Counseling

MSBDC advisors can assist businesses with disaster loan applications.

If you are not currently a client and would like to speak with a counselor, please find your region and reach out to the REGIONAL OFFICE SERVING YOU.

Berkshire Regional Office
33 Dunham Mall, Suite 103
Pittsfield, MA 01201
413-499-0933 | Fax: 413-499-3005
www.msbdc.org/berkshire

Central Regional Office
Clark University
The Carriage House, 125 Woodland Street
Worcester, MA 01610
508-793-7615 | Fax: 508-793-8890
www.clarku.edu/offices/sbdc

Northeast Regional Office
Salem State University
121 Loring Avenue, Suite 310
Salem, MA 01970
978-542-6343 | Fax: 978-542-6345
www.salemstate.edu/sbdc

Procurement Technical Assistance Center
Scibelli Enterprise Center
1 Federal Street, Building 1
Springfield, MA 01105
413-545-6303 | Fax: 413-737-2312
https://www.massptac.org

Southeast Regional Office
200 Pocasset Street
Fall River, MA 02721
508-673-9783 | Fax: 508-674-1929
www.msbdc.org/semass

Western Regional Office
Scibelli Enterprise Center
One Federal Street, Building 101
Springfield, MA 01105-1160
413-577-1768 | Fax: 413-737-2312
www.msbdc.org/wmass

 


SCORE BOSTON

Request for Counseling

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.

SCORE Boston Chapter

SCORE Worcester Chapter

SCORE Northeastern Massachusetts Chapter

SCORE Southeastern Massachusetts Chapter

SCORE Western Massachusetts Chapter

SCORE Cape Cod Chapter

SCORE Rhode Island (Serving Fall River, New Bedford)

 


UPCOMING Virtual Events

Tuesday 4/7/20 at 10am
Current Information on SBA Economic Relief for Small Businesses

Thursday, 4/9/20 at 10am
CARES Act: What's in it for Startups?

Thursday, 4/9/20 at 11AM
BECMA: Virtual Conversation with SBA Bob and Nadine

Thursday  4/16/20 at 10am
Intellectual Property for Small Businesses

Wednesday  4/29/20 at 10am
Funding Options – What to consider and Where to Find It.

cape


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. 


small biz sba.jpg