The U.S. Small Business Administration's Community Advantage Recovery Loan program provides financial and technical assistance to help small businesses adapt and manage through COVID-19 challenges.
The technical assistance consists of 15 hours of required advising, which must be completed during the first six months of the loan term.
It can include such topics as business planning, financial management strategies to build cash reserves and reduce expenses, operations management, and marketing and e-commerce.
- Allowable uses: Working capital, inventory, equipment, and real estate purchases
- Loan amount: $50,000 to $250,000
- Loan term:
- Minimum five years
- Maximum 10 years for working capital and equipment, 25 years for real estate
- 10% minimum downpayment
- Interest rate: Maximum prime + 6%
- Collateral required: All loans shall be secured by available assets of the borrower and its principals to the extent necessary to protect the interests of the lender
- Deadline: Approval by Sept. 27, 2020; full loan disbursement no later than Oct. 1, 2020
The SBA will cover the payment of principal, interest, and other fees for the first six months.
To apply for a Community Advantage Recovery Loan contact the Community Investment Corporation.