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Coronavirus COVID-19 CARES Act SBALoan & Grant Programs

For small business, one of the more important parts of federal coronavirus relief is the enhancement of the SBA 7(a) loan program, particularly the introduction of the Paycheck Protection Program. The Paycheck Protection Program gives the SBA the ability to guarantee hundreds of billions in loans to small businesses via a national network of banks. The Paycheck program provides a forgivable loan for eight or twenty-four weeks of cash-flow assistance to small businesses with 500 employees or fewer. Borrowers may also apply for an emergency grant of $10K to meet immediate needs, as well as for an Express Loan.
A detailed comparison of the key coronavirus relief loans, details on how to apply, articles and FAQs are below.
For information on State and Local coronavirus relief programs, please see this page.

Loan Comparison


Standard

CARES Act

Loan Comparison
7(a) SBA Loan & Paycheck Protection Program (PPP)MORE INFORMATION

  • How to Apply

    StandardClick Here Learn How to Apply

    CARES ActClick Here to Learn How to Apply for a 7(a) Loan


  • Who is Eligible

    Standard● Qualified small businesses● For profit businesses only● Engaged in, or propose to do business in, the U.S. or its territories● Owner equity to invested● Used alternative financial resources, including personal assets, before seeking financial assistance● Not on the excluded business list

    CARES Act● Operating on February 15, 2020● Any business, nonprofit, veterans group, or tribal business with 500 or fewer employees including● Sole proprietors● Independent contractors● Eligible self-employed workers● Hotel and food service chains and franchisees with 500 or fewer employees per location


  • Allowed uses

    Standard● Acquire land● Purchase a building● Convert, expand or renovate buildings● Acquire and install fixed assets● Acquire inventory● Purchase supplies and raw materials● Purchase a business● Start a business● Leasehold improvements● Term working capital● Refinance certain debts

    CARES ActIn addition to normal uses:● Payroll costs, including payments for vacation, parental, family, medical or sick leave; severance payments; payments required for group health care benefits (including insurance premiums), retirement benefits, and state and local employment taxes● Interest payments on any mortgage obligations or other debt obligations incurred before February 15, 2020 (but not any payments or prepayments of principal) ● Rent payments● Utilities● Salaries, but cannot be used for compensation of individual employees, independent contractors, or sole proprietors in excess of an annual salary of $100,000; compensation of employees with a principal place of residence outside the United States; or leave wages already covered by the Families First Coronavirus Response Act● Other debt obligations


  • Maximum Loan

    Standard$5M

    CARES ActLesser of: average fixed payroll costs X 2.5 timesor $10M max


  • Interest Rate

    StandardVariable: Prime + 2.25% to 4.75% depending on amount and term of loanFixed: 5% to 8%

    CARES Act1%


  • Term

    Standard25 years for real estate
    10 years for equipment
    10 years of working working capital or inventory loan

    CARES Act5 years


  • Fees

    Standard2% - 3% of loan

    CARES ActWaived


  • Prepayment Penalties

    StandardFor certain terms loans 15 years or more

    CARES ActWaived


  • Collateral

    StandardNone up to $25K. For loans exceeding $350K, SBA requires maximum collateral up to principal amount

    CARES ActWaived


  • Payment deferment

    StandardN/A

    CARES ActWhen SBA remits loan forgiveness amount to bank if borrower applies for forgiveness within 10 months after end of loan period; or 10 months from end of covered period if no forgiveness applied for


  • Loan forgiveness

    StandardN/A

    CARES ActForgiveness for 8 or 24 weeks (borrower's choice) from date of loan origination for:● Payroll costs● Mortgage interest payments● Rent payments● Utility paymentsNOTE: Forgiveness contingent on keeping employees at 60% or greater of prior wages, or proportional reduction


  • Funding source

    StandardSBA matches Lender

    CARES ActSBA matches Lender and pays Borrower's Interest and principal if deferred


  • SBA guarantee to lender

    Standard85% < $150K > 75%

    CARES Act100% until December

7(a) SBA Loan & Paycheck Protection Program (PPP)MORE INFORMATION

  • How to Apply

    StandardClick Here Learn How to Apply

    CARES ActClick Here to Learn How to Apply for a 7(a) Loan


  • Who is Eligible

    Standard● Qualified small businesses● For profit businesses only● Engaged in, or propose to do business in, the U.S. or its territories● Owner equity to invested● Used alternative financial resources, including personal assets, before seeking financial assistance● Not on the excluded business list

    CARES Act● Operating on February 15, 2020● Any business, nonprofit, veterans group, or tribal business with 500 or fewer employees including● Sole proprietors● Independent contractors● Eligible self-employed workers● Hotel and food service chains and franchisees with 500 or fewer employees per location


  • Allowed uses

    Standard● Acquire land● Purchase a building● Convert, expand or renovate buildings● Acquire and install fixed assets● Acquire inventory● Purchase supplies and raw materials● Purchase a business● Start a business● Leasehold improvements● Term working capital● Refinance certain debts

    CARES ActIn addition to normal uses:● Payroll costs, including payments for vacation, parental, family, medical or sick leave; severance payments; payments required for group health care benefits (including insurance premiums), retirement benefits, and state and local employment taxes● Interest payments on any mortgage obligations or other debt obligations incurred before February 15, 2020 (but not any payments or prepayments of principal) ● Rent payments● Utilities● Salaries, but cannot be used for compensation of individual employees, independent contractors, or sole proprietors in excess of an annual salary of $100,000; compensation of employees with a principal place of residence outside the United States; or leave wages already covered by the Families First Coronavirus Response Act● Other debt obligations


  • Maximum Loan

    Standard$5M

    CARES ActLesser of: average fixed payroll costs X 2.5 timesor $10M max


  • Interest Rate

    StandardVariable: Prime + 2.25% to 4.75% depending on amount and term of loanFixed: 5% to 8%

    CARES Act1%


  • Term

    Standard25 years for real estate
    10 years for equipment
    10 years of working working capital or inventory loan

    CARES Act5 years


  • Fees

    Standard2% - 3% of loan

    CARES ActWaived


  • Prepayment Penalties

    StandardFor certain terms loans 15 years or more

    CARES ActWaived


  • Collateral

    StandardNone up to $25K. For loans exceeding $350K, SBA requires maximum collateral up to principal amount

    CARES ActWaived


  • Payment deferment

    StandardN/A

    CARES ActWhen SBA remits loan forgiveness amount to bank if borrower applies for forgiveness within 10 months after end of loan period; or 10 months from end of covered period if no forgiveness applied for


  • Loan forgiveness

    StandardN/A

    CARES ActForgiveness for 8 or 24 weeks (borrower's choice) from date of loan origination for:● Payroll costs● Mortgage interest payments● Rent payments● Utility paymentsNOTE: Forgiveness contingent on keeping employees at 60% or greater of prior wages, or proportional reduction


  • Funding source

    StandardSBA matches Lender

    CARES ActSBA matches Lender and pays Borrower's Interest and principal if deferred


  • SBA guarantee to lender

    Standard85% < $150K > 75%

    CARES Act100% until December

Loan Comparison
SBA 7(b) Economic Injury Disaster Loan (EIDL)
SBA 7(b) Economic Injury Disaster Loan (EIDL)

  • How to Apply

    StandardClick Here to Learn How to Apply

    CARES ActClick Here to Learn How to Apply for a Disaster Loan


  • Allowed Uses

    StandardWorking capital for ordinary and necessary operating expenses

    CARES ActWorking capital for ordinary and necessary operating expenses


  • Maximum Loan

    Standard$2M

    CARES Act$2M


  • Interest Rate

    StandardUp to 4%

    CARES ActBusinesses 3.75%Nonprofits 2.75%


  • Term

    Standard30 years maximum

    CARES Act30 years maximum


  • Turn Around Time

    Standard2 to 3 weeks or longer

    CARES ActSame day


  • Collateral

    StandardNone up to $25K.
    For loans exceeding $350K, SBA requires maximum collateral up to principal amount

    CARES ActWaived


  • SBA EIDL Grant

    StandardNone

    CARES ActUp to $10K dispursed within three days for ● Startups● Cooperatives and ● ESOPs with fewer than 500 employees, and ● Any individual operating as a sole proprietor or an independent contractor

SBA 7(b) Economic Injury Disaster Loan (EIDL)
SBA 7(b) Economic Injury Disaster Loan (EIDL)

  • How to Apply

    StandardClick Here to Learn How to Apply

    CARES ActClick Here to Learn How to Apply for a Disaster Loan


  • Allowed Uses

    StandardWorking capital for ordinary and necessary operating expenses

    CARES ActWorking capital for ordinary and necessary operating expenses


  • Maximum Loan

    Standard$2M

    CARES Act$2M


  • Interest Rate

    StandardUp to 4%

    CARES ActBusinesses 3.75%Nonprofits 2.75%


  • Term

    Standard30 years maximum

    CARES Act30 years maximum


  • Turn Around Time

    Standard2 to 3 weeks or longer

    CARES ActSame day


  • Collateral

    StandardNone up to $25K.
    For loans exceeding $350K, SBA requires maximum collateral up to principal amount

    CARES ActWaived


  • SBA EIDL Grant

    StandardNone

    CARES ActUp to $10K dispursed within three days for ● Startups● Cooperatives and ● ESOPs with fewer than 500 employees, and ● Any individual operating as a sole proprietor or an independent contractor

Loan Comparison
SBA Express Loan Program
SBA Express Loan Program

  • How to Apply

    StandardClick Here to Learn How to Apply

    CARES ActClick Here to Learn How to Apply for an Express Loan


  • Maximum Loan 

    Standard$350K

    CARES Act$1M until December, then $500K


  • Allowed Uses 

    Standard● Long-term working capitalAccounts payable, purchasing inventory, and other operational expenses ● Providing short-term working capital● Seasonal financing, contract performance, construction financing, and/or export● Purchasing real estatePurchasing equipment, furniture, machinery, supplies, and materials● Covering construction and/or renovation costs● Establishing or acquiring a new business, or expanding an existing business● Refinancing existing business debt (so long as the lender and ultimately the SBA are not in a position to sustain a loss through refinancing)

    CARES Act● Operating capital


  • Term

    Standard7 years maximum

    CARES Act7 years maximum


  • Turn Around Time

    Standard36 hours

    CARES Act36 hours


  • Collateral

    StandardNone up to $25KLender discretion up to $350K maximum

    CARES ActNone up to $25K. Lender discretion up to $350K maximum

SBA Express Loan Program
SBA Express Loan Program

  • How to Apply

    StandardClick Here to Learn How to Apply

    CARES ActClick Here to Learn How to Apply for an Express Loan


  • Maximum Loan 

    Standard$350K

    CARES Act$1M until December, then $500K


  • Allowed Uses 

    Standard● Long-term working capitalAccounts payable, purchasing inventory, and other operational expenses ● Providing short-term working capital● Seasonal financing, contract performance, construction financing, and/or export● Purchasing real estatePurchasing equipment, furniture, machinery, supplies, and materials● Covering construction and/or renovation costs● Establishing or acquiring a new business, or expanding an existing business● Refinancing existing business debt (so long as the lender and ultimately the SBA are not in a position to sustain a loss through refinancing)

    CARES Act● Operating capital


  • Term

    Standard7 years maximum

    CARES Act7 years maximum


  • Turn Around Time

    Standard36 hours

    CARES Act36 hours


  • Collateral

    StandardNone up to $25KLender discretion up to $350K maximum

    CARES ActNone up to $25K. Lender discretion up to $350K maximum

Illustration

Emergency Relief Services

● Cash Flow Analysis● Tax Planning● Tax Extension Preparation● Tax Appeals and Tax Resolution● State and Local Tax Relief● Special Deductions and Credits● S Corps and Partnership Budgeting● C Corp Budgeting● Sales and Use Tax Relief● SBA Loan Consulting

How to Apply for a CARES Act SBA Loan or Grant

Here’s what you will need to apply for a CARES Act SBA loan or grant

How to Apply for a Paycheck Protection Program (PPP) Loan - Applications Due by August 8th

We are guided by efficient work with clients. Here’s what you will need to apply for an SBA Paycheck Protection Program Loan:

How to Apply for an SBA Disaster Loan or Grant

We are guided by efficient work with clients. Here’s what you will need to apply for an SBA Economic Injury Disaster Loan unless the SBA or your lender decides to accept an expedited application:

  • 1

    Complete the SBA Loan Application

    1

    Complete the SBA Loan Application

  • 2

    Complete the Personal Background and Financial Statement

    2

    Complete the Personal Background and Financial Statement

  • 3

    Prepare Your Business Financial Statements

    3

    Prepare Your Business Financial Statements

  • 4

    Prepare Your Ownership and Affiliations Lists

    4

    Prepare Your Ownership and Affiliations Lists

  • 5

    Collect Your Business Certificates and Licenses

    5

    Collect Your Business Certificates and Licenses

  • 6

    Complete Your Loan Application History

    6

    Complete Your Loan Application History

  • 7

    Gather Your Income Tax Returns for the Last 3 Years

    7

    Gather Your Income Tax Returns for the Last 3 Years

  • 8

    Prepare Personal Résumés for the Principal(s)

    8

    Prepare Personal Résumés for the Principal(s)

  • 9

    Prepare a Business Overview and History

    9

    Prepare a Business Overview and History

How to Apply for an SBA Express Loan

We are guided by efficient work with clients. Here’s what you will need to apply for an SBA Express Loan unless the SBA or your lender decides to accept an expedited application:

  • 1

    Complete the SBA Loan Application

    1

    Complete the SBA Loan Application

  • 2

    Complete the Personal Background and Financial Statement

    2

    Complete the Personal Background and Financial Statement

  • 3

    Prepare Your Business Financial Statements

    3

    Prepare Your Business Financial Statements

  • 4

    Prepare Your Ownership and Affiliations Lists

    4

    Prepare Your Ownership and Affiliations Lists

  • 5

    Collect Your Business Certificates and Licenses

    5

    Collect Your Business Certificates and Licenses

  • 6

    Complete Your Loan Application History

    6

    Complete Your Loan Application History

  • 7

    Gather Your Income Tax Returns for the Last 3 Years

    7

    Gather Your Income Tax Returns for the Last 3 Years

  • 8

    Prepare Personal Résumés for the Principal(s)

    8

    Prepare Personal Résumés for the Principal(s)

  • 9

    Prepare a Business Overview and History

    9

    Prepare a Business Overview and History

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