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
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.
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.
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.
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:
Most states did similar changes on tax filing and tax payment deadlines
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.
| District of Columbia | Contiguous Counties: |
| Contiguous Counties: | ARIZONA Apache, Greenlee. |
| MARYLAND Montgomery, Prince Georges. |
COLORADO Archuleta, Costilla, La Plata, Las Animas, Montezuma. |
| State of California # 16332 | TEXAS Andrews, Cochran, Deaf Smith, El Paso, Gaines, Hartley, Loving, Oldham, Winkler, Yoakum. |
| State of Connecticut # 16335 | State 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 # 16334 | State of Utah # 16338 |
| Contiguous Counties: | Contiguous Counties: |
| NEW HAMPSHIRE Carroll, Rockingham, Strafford. |
ARIZONA Apache, Coconino, Mohave, Navajo. |
| State of Montana | COLORADO 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. |
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| IDAHO Cassia, Owyhee, Twin Falls. |
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| OREGON Harney, Lake. |
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| State of New Mexico |
