Small businesses (500 or fewer employees, but up to 1,500 depending on the sector), 501(c)(3) non-profits (500 or fewer employees), sole proprietors, the self-employed and independent contractors.
How Much is Available?
Initially loaned through the SBA 7(a) program, but with 100% government guarantee, for monthly payroll costs for 2 1/2 months, not to exceed $10 million. Payroll costs exclude compensation paid to individuals, including the self-employed, above $100,000 a year. The borrower shall have a portion of the loan forgiven in the amount equal to their payroll costs, interest payments on mortgages, rent payments and utility payments between Feb. 15 and June 30, 2020. Loan forgiveness will be reduced if the borrower reduces employment by a ratio similar to their reduction in employment or if borrower reduces salaries and wages by more than 25%.
Economic Injury Disaster Loan Changes
The following changes have been made to this existing program, administered by the SBA:
- Loans can be made based solely on credit scores.
- Loans are now made available to all nonprofits, including 501(c)(6) organizations.
- Loans below $200,000 can be approved without a personal guarantee.
- Borrowers can receive $10,000 cash advances that are forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue losses.