Coronavirus (COVID-19):

Small  Business & Loan Resources

What you need to know.


Paycheck Protection Program - SBA Loan Program Expanded in CARES Act

On March 27, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law, providing an unprecedented level of emergency assistance for individuals, families, and businesses affected by the coronavirus epidemic.

The legislation includes a new loan program – the Paycheck Protection Program administered through the SBA – that provides up to $349 billion in loans to eligible entities, with such loans being subject to forgiveness under certain circumstances. The 100 percent federally-guaranteed loans are available under a new subsection 36 of Section 7(a) of the Small Business Act.

The loans may be used for a variety of purposes, including payroll costs, rent, utilities, mortgage interest (not principal) existing prior to February 15, 2020.

Learn more about the details of the PPP Loan in our FAQ.


SBA's Economic Injury Disaster Loans (EIDL)

The SBA Disaster Assistance Program and the CARES Act are both for existing, established/operating businesses. Small businesses looking for relief funding will need to choose one or the other.
  • Up to $2 Million in assistance
  • Loans can be used to pay fixed debts, payroll, accounts payable and other bills that can't be paid due to the disaster
  • Low-interest loans for working capital
  • Often have deferred payments for the first 12 months
  • Available for small businesses and private, non-profit organizations
  • Loans applied and funded through the SBA

SBA Debt Relief

Under the CARES Act, 7(a) Borrowers are relieved of any obligation to pay the principal, interest and any associated fees that are owed on a 7(a) loan in a regular servicing status (including Community Advantage loans) for a 6-month period beginning with the first payment due on a loan after March 27, 2020. 

A loan in regular servicing status includes:

  • Any loan that has been moved from “approval” status to “regular servicing” status, which occurs when the loan has been closed and the final loan disbursement has been made (revolving lines of credit are considered fully disbursed when the loan has been closed and the initial loan disbursement has been made)
    • If your loan request includes funds for buildout, this means buildout must be completed and the loan fully disbursed, before you will receive these SBA debt payments.
  • A loan in “regular servicing status” does not include any loan that has been moved from “regular servicing” into “liquidation” status, or any loan that should have been moved pursuant to SBA Loan Program Requirements from “regular servicing” into “liquidation” status prior to the first payment due date
  • Generally, a loan in “regular servicing status” should not include any loan that is more than 120 days past due

Existing vs. New Borrowers

  • Existing borrowers
    • NOT on deferment:  6 months of payments, principal, interest & associated fees* beginning with the next payment on the loan
    • ON deferment: 6 months of payments, principal, interest & associated fees* beginning with the next payment on the loan after the deferment period
  • New borrowers
    • Six months of payments of principal, interest, and any associated fees* beginning with the first payment due on the loan, but ONLY for new loans made within the first six months starting from the date of enactment (3/27/2020) to 9/27/2020.
  •  *Associated fees means the monthly fees paid by the borrower including:
    • For 504, the SBA guarantee fee, the CSA fee, and the CDC servicing fee.
    • For 7(a), the extraordinary servicing fee. Subject to prior written SBA approval, if all or part of a loan will have extraordinary servicing needs, the Lender may charge the applicant a service fee not to exceed 2 percent per year on the outstanding balance of the part requiring special servicing.

  • SBA will pay this first loan payment to the Lenders within 30 days of the first loan payment due date after March 27, 2020.
    • If a Lender receives a loan payment from a Borrower after March 27, 2020, the Lender must inform the Borrower that it has the option of the Lender either returning the loan payment to the Borrower or applying the loan payment to further reduce the loan balance after application of SBA’s payment
  • NOT Deferment- you NEVER have to pay these monies back.
  • Lenders are encouraged by SBA to provide deferments either before or after this payment relief.   You may end up with BOTH a payment deferment (this amount will be added to the end of the loan) AND debt relief of 6 months (that requires NO payback).
  • ALL borrowers are assumed to be “adversely affected by COVID-19
  • ALL borrowers deemed eligible for relief payments with loans under the eligible SBA programs
  • NO ACTION required by Borrowers to apply
  • PPP Loans will not receive this, but will have 6-12 months deferment and possible forgiveness