Our nation’s small businesses are facing an unprecedented economic disruption due to the Coronavirus (COVID-19) outbreak. On Friday, March 27, 2020, the President signed into law the CARES Act, which contains $376 billion in relief for American workers and small businesses.
This loan program provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program.
Payment Protection Program This loan program provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. This loan has a maturity of 2 years and an interest rate of 1%. Eligible Loan Amount is Average total monthly payments of payroll costs over the last year; multiplied by 2.5
EIDL Loan Advance This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.
SBA Debt Relief The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic. -The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months. -The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
7(a) program offers loan amounts up to $5,000,000 and is an all-inclusive loan program deployed by SBA partners such as Spartan Capital within the U.S. States and its territories. The uses of proceeds include: working capital; expansion/renovation; new construction; purchase of land or buildings; purchase of equipment, fixtures; lease-hold improvements; refinancing debt for compelling reasons; seasonal line of credit; inventory; or starting a business.
What is a 7(a) loan and how do I apply?7(a) loans are an affordable loan product of up to $5 million for borrowers who lack credit elsewhere and need access to versatile financing, providing short-term or long-term working capital and to purchase an existing business, refinance current business debt, or purchase furniture, fixtures and supplies. In the program, banks share a portion of the risk of the loan with SBA. There are many different types of 7(a) loans, you can contact Spartan Capital to find out which one is best for you.
Express loan program provides loans up to $350,000 for no more than 7 years with an option to revolve. There is a turnaround time of 36 hours for approval or denial of a completed application. The uses of proceeds are the same as the standard 7(a) loan.
504 loan program is designed to foster economic development and job creation and/or retention. The eligible use of proceeds is limited to the acquisition or eligible refinance of fixed assets.