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?
If you have an existing relationship with an SBA Express lender, the Express Bridge Loan might be a good fit to get up to $25K quickly. Look for Express Lenders
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 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.
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
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.
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
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.
