UPDATED: March 30, 2020
We continue to monitor changes in the small business environment and are taking proactive measures to prepare our clients to evaluate accessing business disruption funds needed during this time.
Currently, two primary options are being used/reviewed by the Small Business Administration (SBA) to deploy federal funds to small businesses impacted by the pandemic. These two fund streams are SBA 7(a) Relief Loans under the CARES Act and the SBA 7(b) economic injury disaster loan (“EIDL”) loan program.
These two funding streams have very different characteristics, including suggested use of funds, potential loan forgiveness, repayment terms, eligibility qualifications, etc. It is very important to evaluate your personal situation to determine which program best fits your needs.
Below is a comparison of some of the considerations of the two funding streams:
On March 27, 2020, the House approved the CARES Act and President Trump signed it into law. The SBA is expected to issue its regulations and guidelines within the week. However, it is important to begin compiling the information needed to complete the loan application process now.
At this time, we are guiding our clients who are eligible for BOTH of these funding streams to hold off on any application until further guidance is received.
We are also working with multiple SBA lenders to develop an SBA 7(a) Relief Loan application and onboarding process to streamline the information input process and hopefully expedite the review/approval process for faster funding.
If you're interested in obtaining a SBA 7(a) Relief Loan under the Paycheck Protection Program and would like to get started with us, please register on our sign-up page.
Once signed up, we will contact you with instructions to begin gathering needed information and future expected steps. Please also feel free to forward if helpful to others.
If you have any immediate questions or concerns, or would like more information about small business resources, please contact us.