The Small Business Administration (SBA) provides Coronavirus Relief Options for small businesses and non-profits impacted by COVID-19.

1. Economic Injury Disaster Loan
2. Paycheck Protection Program
3. SBA Express Bridge Loans
4. SBA Debt Relief

Cornovirues outbreak affected many most of small businesses and non-profit organizations across the nation. There are almost daily basis developments in government (the SBA) disaster assistance for small businesses and non-profits. We will try to keep this page updated as we collect new information from our research and experience.

Startups that receive funding from VCs and self employed (independent contractors) individuals may qualify at least on of the funding options. In addition to the SBA Coronavirus Assistance, there are state and private funding opportunities which small businesses can ask for help.


This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

disaster-loan

What funding options are currently available for small businesses, startups, non-profits and self-employed individuals?

SBA Disaster Loan

Economic Injury Disaster Loan (EIDL)

Purpose

Full EIDL loan will be calculated based on small business’ financial obligations and operating expenses that could have been met had the disaster not occurred.

Terms

Up to $2 million

3.75% for businesses

2.75% for non-profits

Forgivable: NO

First Payment can be deffered up to 1 year.

However, applicants can receive EDIL Advance up to $10,000 which will be forgivable. Amount of the EDIL Advance will be determined by the number of pre-disaster employees, based on the SBA news update on April 13, 2020. The Advance will provide $1,000 per employee based on employee count as of January 31, 2020.

Companies which has 500 or less employees qualify for this program. The SBA requires collateral over $25K but the loan will not be denied due lack of collateral if the applicant pledges everything.

Click here for SBA Disaster Loan Application page

Following links can give additional information:

I wasn’t prepared for the shutdown, what are my options as a small business owner?

Paycheck Protection Plan

Check with your bank for Paycheck Protection Plan (PPP) application.

Small businesses, startups, non-profits and independent contractors can apply Paycheck Protection Plan (under the CARES Act) through banks and fin-techs to get forgivable loan from the SBA. This loan is calculated 2.5x of applicants monthly average payroll cost including employer portion of health insurance payments  and retirement fund contributions.  PPP is up to $10 million at 1% interest rate. Maturity date is 2 years and first payment deferred 6 months.

Additionally, any employees paid over $100,000, applicant’s contribution is capped at annualized rate of $100,000.

Businesses cannot have more than 500 employees in order to qualify to this program.

Find SBA Lenders

Paycheck Protection Plan

Check with your bank  for Paycheck Protection Plan (PPP) application.

Small businesses, startups, non-profits and independent contractors can apply Paycheck Protection Plan (under the CARES Act) through banks and fin-techs to get forgivable loan from the SBA. This loan is calculated 2.5x of applicants monthly average payroll cost including employer portion of health insurance payments  and retirement fund contributions.  PPP is up to $10 million at 1% interest rate. Maturity date is 2 years and first payment deferred 6 months.

Additionally, any employees paid over $100,000, applicant’s contribution is capped at annualized rate of $100,000.

Businesses cannot have more than 500 employees in order to qualify to this program.

Find SBA Lenders

SBA Express Bridge Loan & SBA Disaster Debt Relief

Other SBA Disaster Assistance Programs

SBA Express Bridge Loans

Business can get $25,000 SBA Express Bridge Loans from the SBA Express Lender (banks) that they have already business relationship. This loan can be quick way of getting cash and economic support for businesses which experience loss of revenue.

SBA Express Bridge Loans can be term loans or a bridge loan while applying for SBA Economic Injury Disaster Loan.

Terms (as expressed on SBA website):

  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan

SBA Debt Relief

The SBA pays for the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.

Fin out more about this at SBA Debt Relief page.

Other Non-SBA funding options and application status

Application for DC non-refundable grants for qualified businesses is CLOSED AS OF April 1, 2020.

Link: DC Small Business Recovery Microgrants

However, there are still more options for qualified small businesses located in Washington, DC.

Link: DC Businesses

Applications for Maryland Small Business CPVID-19 Emergency Grant Fund is closed as of April 6, 2020.

Link: MD COVID-19 grants

VA30 Day Fund up to $3,000 for qualified small businesses in Virginia is currently accepting applications.

Link: VA30 Day Fund

Gofundme small business relief fundraisers

Link: Gofundme

Internal Revenue Service (IRS) has delayed 2019 tax filing and tax payment deadline until July 15, 2020 in order to let qualified businesses and taxpayers  keep the money to use during this difficult time.

Check for more detailed information from the IRS website at following link:

IRS COVID-19

Most states did similar changes on tax filing and tax payment deadlines

Maryland

Virginia

Economic Impact Payments for (Stimulus Payments)

Stimulus payments for taxpayers are automatic for most taxpayers who filed for 2018 or 2019. Non-filers can enter their payment information to get their stimulus payment.

Link: IRS Economic Impact Payments 

District of ColumbiaContiguous Counties:
Contiguous Counties:ARIZONA
Apache, Greenlee.
MARYLAND
Montgomery, Prince Georges.
COLORADO
Archuleta, Costilla, La Plata, Las Animas, Montezuma.
State of California # 16332TEXAS
Andrews, Cochran, Deaf Smith, El Paso, Gaines, Hartley, Loving, Oldham, Winkler, Yoakum.
State of Connecticut # 16335State of Rhode Island
Contiguous Counties:Contiguous Counties:
MASSACHUSETTS
Berkshire, Hampden, Worcester.
CONNECTICUT
New London, Windham.
NEW YORK
Dutchess, Putnam, Westchester.
MASSACHUSETTS
Bristol, Norfolk, Worcester.
State of Maine # 16334State of Utah # 16338
Contiguous Counties:Contiguous Counties:
NEW HAMPSHIRE
Carroll, Rockingham, Strafford.
ARIZONA
Apache, Coconino, Mohave, Navajo.
State of MontanaCOLORADO
Dolores, Mesa, Montezuma, Montrose, San Miguel.
Contiguous Counties:WYOMING
Sweetwater, Uinta.
IDAHO
Clearwater, Fremont, Idaho.
Washington State # 16333
NORTH DAKOTA
Divide, Williams.
Contiguous Counties:
WYOMING
Park, Teton.
IDAHO
Benewah, Latah, Nez Perce.
Contiguous Counties:OREGON
Gilliam, Hood River, Morrow, Sherman, Umatilla, Wasco.
ARIZONA
Mohave.
IDAHO
Cassia, Owyhee, Twin Falls.
OREGON
Harney, Lake.
State of New Mexico

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