SBA Disaster Assistance for Va Small Businesses
Paycheck Protection Program
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
Under this program:
The loans, which are 100% backed by SBA, are being provided to small businesses without collateral requirements, personal guarantees, SBA fees, or credit elsewhere tests. Those eligible for the program include small businesses, certain non-profits, veterans’ organizations, self-employed individuals, independent contractors, and other businesses meeting size standards based on their North American Industry Classification System code.
The Paycheck Protection Program’s maximum loan amount is $10 million with a fixed 1% interest rate and maturity of two years.
The loans are available to cover up to eight weeks of average monthly payroll (based on 2019 figures) plus 25% and payments are deferred for six months (interest does accrue). The SBA will forgive the portion of loan proceeds used for payroll costs and other designated operating expenses for up to eight weeks, provided at least 75% of loan proceeds are used for payroll costs. Eligible expenses for the eight-week forgiveness include:
Payroll costs (excluding the prorated portion of any compensation above $100,000 per year for any person. Payroll costs include salary, commissions, tips; certain employee benefits including sick leave and health care premiums, and state and local taxes;
Mortgage interest (not prepayment or principal payments) and rent payments on mortgages and leases in existence after February 15, 2020;
Utilities such as electricity, gas, water, transportation, phone and internet access for services that began before February 15, 2020; and
Additional wages paid to tipped employees.
Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
- Loan payments will be deferred for six months.
- If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
Resources / Documents:
Economic Injury Disaster Loans and Loan Advance
To apply for a COVID-19 Economic Injury Disaster Loan, click here.
In response to the Coronavirus (COVID-19) pandemic, 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 will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
A tutorial video showing steps on how to apply can be found at https://youtu.be/WUdjukly91I
A few notations:
- The new website is more streamlined to prevent the website from crashing. It is meant to establish eligibility for a loan. A loan officer will reach out to the applicant for more information if needed. Please encourage folks to have documentation ready to upload.
- If you are deemed eligible for a loan then the applicant will receive a link to be able to check the status of their loan.
- The $10,000 is an advance. It is NOT a grant at this time. It MAY be forgiven but official documentation has not established this yet. At this time it is only an advance not a grant.
- The best time to apply for an EIDL loan right now is between 12AM-2AM
- If an applicant is not sure if their application went through effectively they should email this question to d[email protected]
SBA Debt Relief
The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis.
Under this program:
- The SBA will also pay the principal and interest of new 7(a) loans issued prior to 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 the temporary loss of revenue they are experiencing and can be a term loans 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.
- 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 by connecting with your local SBA District Office.
Here is a link for our Spanish speaking clients: www.gobierno.usa.gov/coronavirus (en Español).
Virginia Employment Commission Press release 4/8/2020:
“ Affected workers, like the self-employed, who are not eligible under traditional unemployment insurance may be eligible under a brand new federal program called Pandemic Unemployment Assistance (PUA).”
If you know a business owner that is being effected by COVID19 they should file an initial unemployment claim! A video outlining how to file online can be found here: https://youtu.be/0yyTGNWAA3A
COVID-19: What it Means for Employers & Employees presented by George Koliopoulos, Brydon DeWitt, & Charlie Alvis from Williams Mullen
April 10th (Friday 12-1pm)
Follow this link for additional information and registration: