There are many COVID-19 funding programs available to small business owners. You will find a brief description of the SBA programs below. If you need assistance understanding and applying for the programs, complete an SBDC Request for Counseling form. SBDC counselors are here to assist you. Submit your request here.
SBA Paycheck Protection Loan Programs
The Paycheck Protection Programs (PPP) are designed to provide a direct incentive for small businesses to keep their workers on the payroll.
First Draw PPP loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
The Second Draw PPP loan now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP loan with the same general loan terms as their First Draw PPP loan. Second Draw PPP loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
- PPP Loan Forgiveness informational website.
- SBA Form 3508ez PPP Forgiveness Instructions
- SBA Form 3508 PPP Forgiveness Instructions
- SBA Form 3508S PPP 3508S Forgiveness Instructions
For additional information about PPP, loans visit the SBA website: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program
COVID-19 Economic Injury Disaster Loans (EIDL)
The COVID-19 Economic Injury Disaster Loan program is designed to meet the financial obligations and operating expenses that could have been met had the disaster not occurred. EIDL loan applications will continue to be accepted through December 2021, pending the availability of funds. Loans are offered at very affordable terms, with a 3.75% interest rate for small businesses and 2.75% interest rate for nonprofit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin.
For the most up-to-date information on these COVID-19 relief programs, visit www.sba.gov/disaster.
If you received an email from CLS@sba.gov requesting information, it is legitimate.
Targeted EIDL Advance Program
The COVID-19 Targeted EIDL Advance was signed into law on December 27, 2020, as part of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act. The Targeted EIDL Advance provides businesses in low-income communities with additional funds to ensure small business continuity, adaptation, and resiliency. Advance funds of up to $10,000 will be available to applicants in low-income communities who previously received an EIDL Advance for less than $10,000, or those who applied but received no funds due to lack of available program funding. The SBA is reaching out directly to those who qualify.
Shuttered Venue Operators Grant
The Shuttered Venue Operators Grant (SVOG) program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act. The program includes over $16 billion in grants to shuttered venues, to be administered by SBA’s Office of Disaster Assistance.
Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees. Eligible entities include: Live venue operators or promoters, Theatrical producers, Live performing arts organization operators, Relevant museum operators, zoos and aquariums who meet specific criteria, Motion picture theater operators, and Talent representatives. Applications are closed
SBA Debt Relief
As a part of the CARES Act, the SBA was authorized to pay six months of principal, interest, and any associated fees that borrowers owe for all 7(a), 504, and Microloans reported in regular servicing status. The debt relief to borrowers was originally dependent on the loan being fully disbursed before September 27, 2020, and did not apply to loans made under the Economic Injury Disaster Loan program.
These original provisions were amended on December 27, 2020, through the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act (Economic Aid Act). The Economic Aid Act revised the eligibility criteria for assistance to include all 7(a), 504, and Microloans approved up to September 27, 2020. The Economic Aid Act also authorized additional debt relief payments to 7(a), 504, and Microloan borrowers beyond the six-month period prescribed in the CARES Act. The level of assistance varies based on when the loan was approved and began in February 2021.