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COVID-19 Loan Programs for Businesses

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As a result of the Coronavirus COVID-19 pandemic, several loan programs have been established or modified to provide financial aid to businesses. Below is a listing of several of the programs that may be able to provide relief to your business.

CARES ACT

The Coronavirus Aid, Relief, and Economic Security (CARES) Act offers vast relief options to U.S. businesses. It includes the Paycheck Protection Program (PPP) from the Small Business Administration (SBA).

Read more about the CARES ACT>>

The CARES Act is a robust program that seeks to reduce the financial burden on businesses that are a direct result of the COVID-19 pandemic.  The PPP is a SBA loan program designed to helps businesses keep their workforce employed throughout the COVID-19 pandemic. Details of the PPP program include:

  • Availability to small businesses with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
  • Low interest rate of 1%
  • Two year maturity
  • Loan forgiveness option (if eligible)
  • And much more

    Detailed information about the PPP can be found here.


SBA Economic Injury Disaster Loans (EIDL)

Designed for select businesses that have suffered substantial economic injury and are  located in a declared disaster area.

Read more about SBA Economic Injury Disaster Loans (EIDL)>>

  • The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration.
  • Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available statewide to small businesses and private, non-profit organizations to help alleviate economic injury caused by the Coronavirus (COVID-19).
  • SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
  • These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.
  • SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
  • SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible.
  • For additional information, please visit SBA.gov/disaster.
  • For questions, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov


SBA Express Bridge Loans

These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue.

Read more about 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.

Terms:

  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan


Golden Leaf Foundation Rapid Recovery Loan Program

This program helps small businesses bridge the gap between when crisis strikes and when federal loans, insurance payouts, and other relief funds are approved, or businesses have time to recover.

Read more about the Golden Leaf Foundation Rapid Recovery Loan Program>>

On March 23, 2020, the Golden LEAF Foundation Board of Directors approved $15 million in funding to launch the NC COVID-19 Rapid Recovery Loan Program, managed by the NC Rural Center. This rapid recovery loan helps small businesses bridge the gap between when crisis strikes and when federal loans, insurance payouts, and other relief funds are approved, or businesses have time to recover. The NC COVID-19 Rapid Recovery Loan Program will make loans to eligible businesses for up to $50,000 with zero interest and no payments for six months. If not repaid in six months, the loan will automatically convert to a term loan. Loan sizes are capped at two months of current revenue. After the initial six months, the loan must be repaid through 48 months of principal and interest payments of 5.5%. Loan money must only be used for maintaining or restarting a business.

To apply for the program, business owners can visit ncrapidrecovery.org. Applicants should be able to provide tax returns, profit and loss statements and bank statements.

Participating Rapid Recovery lenders include Business Expansion Funding Corporation (BEFCOR), Carolina Small Business Development Fund, Mountain BizWorks, Natural Capital Investment Fund, and Thread Capital.

 Contact Information:

  • For information on the NC COVID-19 Rapid Recovery Loan Program and to apply for a loan visit https://ncrapidrecovery.org/.
  • To speak with someone about this program or other resources available to small businesses contact BLNC at 800.228.8443.


Families First Program

This program helps small and midsize employers  get immediately and fully reimbursed for the cost of providing Coronavirus-related leave for their employees.

Read more about the Families First Program>>

Under the Families First Coronavirus Act, signed by the IRS and U.S. Department of Labor, employers are allowed to use two refundable payroll tax credits to get reimbursed.  Those include 100% reimbursements to employers for paid leave, including paid childcare leave when schools are closed, and childcare is not available. It also includes health insurance costs.  Employers with fewer than 500 employees are required to pay up to 80 hours of paid leave due to COVID-19, under the act. Those with 50 or less employees qualify for an exemption.


Small Business Grants Program

Facebook has launched a Small Business Grants Program to support businesses struggling as a result of the Coronavirus.

Read more about the Small Business Grants Program>>

In other funding opportunities for small businesses, Facebook has launched a Small Business Grants Program to support businesses struggling as a result of the Coronavirus.  Facebook is offering $100 million in cash grants and advertising credits to up to 30,000 eligible small businesses. The organization will share more details on who is eligible on its website.  It will begin taking application in the coming weeks and people can sign up to received updates on the site when more information is available.


 

Sources for the information above include the following:
https://www.steptoe.com/en/news-publications/senate-passes-omnibus-cares-act.html

https://www.icba.org/news/news-details/2020/03/26/community-bank-provisions-of-the-cares-act?utm_source=informz&utm_medium=email&utm_campaign=informz

https://disasterloan.sba.gov/ela/Information/EIDLLoans

https://www.cebn.org/wp-content/uploads/Keeping-American-Workers-Paid-and-Employed-Act_One-Pager_-FINAL.pdf

https://www.congress.gov/bill/116th-congress/senate-bill/3548/text#toc-idCCF73EAEF8454D2A8B29B9DF4626458E

 

Consult your attorney or tax advisor for information on how each of these programs may impact your business.

While every attempt has been made to provide current and accurate information, programs are changing quickly and these are not direct Fidelity Bank programs. There are also many local programs that may provide assistance in your area.