A PESA webinar with Kevin Wynne from the Small Business Administration provided members with detailed information on two loan programs members could access to alleviate financial hardship caused by the COVID-19 crisis.
Wynne focused on the COVID-19 Economic Injury Disaster Loan. Businesses are eligible for a loan advance of $10,000, which can be available within three days of application. The loan advance will not have to be repaid. The business’s previous year’s financials will be used by SBA to determine the total amount of relief.
In total, the loans can provide up to $2 million in assistance and “… may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.” For small businesses, the interest rate is 3.75%. The interest rate for non-profits is 2.75%.
The SBA programs do not require companies maintain a particular number of employees and the loans can be collateralized behind other creditors.
PESA summarized additional funding available through the SBA’s 7(a) program. If you have additional questions about your company’s eligibility or the application process please contact the SBA Customer Service Center at 1-800-659-2955 or by email at [email protected].
