COVID-19 Resource Catalog-COVID-19 LEGISLATIVE PACKAGES

COVID-19 LEGISLATIVE PACKAGES – SMALL BUSINESS RELIEF

Pdf Summary

The document outlines two small business loan programs created in response to the COVID-19 pandemic. The first program, established by the Coronavirus Preparedness and Response Supplemental Appropriations Act, provides a $1 billion fund administered directly by the Small Business Administration (SBA). Small businesses and non-profit organizations can apply for low-interest federal disaster loans to alleviate economic injury caused by the coronavirus. These loans are not forgivable and must be repaid based on the borrower's loan terms.<br /><br />The second program, part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, consists of the Paycheck Protection Program and an expansion of the Economic Injury Disaster Loan (EIDL) program. Businesses with fewer than 500 employees may apply for a 100% government-backed SBA 7(a) loan up to $10 million, with the loan amount based on average monthly payroll costs. This loan can be forgiven if funds are used for payroll, rent, and mortgage interest. The EIDL program offers eligible businesses a one-time grant of $10,000 to cover short-term costs. However, the amount of loan forgiveness under the Paycheck Protection Program is reduced by the amount of the EIDL grant.<br /><br />To apply for these loans, businesses can visit the SBA website or contact the SBA disaster assistance customer service center. The document provides links and contact information for more details.<br /><br />Overall, these loan programs aim to provide financial support to small businesses impacted by the COVID-19 pandemic.

Keywords

small business loan programs

COVID-19 pandemic

Coronavirus Preparedness and Response Supplemental Appropriations Act

Small Business Administration

low-interest federal disaster loans

economic injury

Paycheck Protection Program

Economic Injury Disaster Loan

SBA 7(a) loan

loan forgiveness