UPDATE 12.28.20: Congress passed legislation Dec. 21, 2020 that was signed by the president Dec. 27 that provides an additional $284 billion for a new round of forgivable Payroll Protection Program loans, now expanded to include nonprofits, local newspapers, and TV and radio broadcasters.
It also sets aside $12 billion for minority-owned and very small businesses that had trouble accessing the first round of PPP funding.
The new round of PPP loans will be limited to companies with no more than 300 employees and loans will be capped at $2 million. Publicly traded businesses are not eligible.
Small businesses that previously received a PPP loan will be eligible for a second loan if their revenues fell by 25% this year.
PPP borrowers will also be allowed to take tax deductions for covered business expenses, including rent and utilities.
Paycheck Protection Program
The Paycheck Protection Program provides forgivable loans for small businesses (less than 500 employees) to help with job retention and certain other expenses.
Small businesses and eligible nonprofit organizations, veterans organizations, and tribal businesses, as well as individuals who are self-employed or independent contractors, are eligible if they meet program size standards.
- Small businesses and sole proprietorships can apply through any existing SBA lender or federally insured depository institution, federally insured credit union, and participating Farm Credit System institution
- Eligible recipients may qualify for a loan up to $2 million determined by eight weeks of prior average payroll plus an additional 25% of that amount
- Loan payments deferred for six months
- If you maintain your workforce, SBA will forgive the portion of the loan proceeds used to cover the first eight weeks of payroll and certain other expenses
Economic Injury Disaster Loans and Loan Advance
Small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
The SBA's Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
The loan advance provides economic relief to businesses currently experiencing a temporary loss of revenue.
Funds are made available within three days of a successful application, and the loan advance will not have to be repaid.FILE_8382
SBA Debt Relief
SBA's Debt Relief program provides a reprieve to small businesses as they overcome the economic challenges created by the coronavirus pandemic. Under this program:
- The SBA will also pay the principal and interest of new 7(a) loans issued before September 27, 2020.
- The SBA will pay the principal and interest of current 7(a) loans for a period of six months
SBA Express Bridge Loans
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork.
These loans can provide vital economic support to small businesses to help overcome temporary loss of revenue can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan.
If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan. Terms:
- Up to $25,000
- Fast turnaround
- Will be repaid in full or in part by proceeds from the EIDL loan
Find an Express Bridge Loan lender through the SBA's Connecticut district offices in Hartford and Bridgeport.Express-Bridge-Loan-Pilot-Program-Guide-FINAL-3.25.20