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COVID-19

On January 30, 2020, the World Health Organization (WHO) declared a global health emergency over novel coronavirus, known as COVID-19. The virus has infected large amounts of people worldwide, with confirmed cases on every continent but Antarctica. The outbreak has caused global supply-chain disruption, with small firms that rely on Chinese imports struggling with the economic fallout. Further, small businesses, like restaurants and tourism companies, are being impacted by the spread of misinformation and xenophobia. On March 4th, Congress passed an $8.3 billion dollar supplemental for efforts to combat the virus. The measure included a provision that enables the Small Business Administration (SBA) to make an estimated $7 billion in low-cost loans to affected small businesses. On March 27th, Congress passed the bipartisan CARES Act which provides more than $376 billion in relief for struggling small businesses, mainly in the form of forgivable payroll loans, disaster grants, and debt relief for current borrowers.   Impacted small business owners are advised to visit the SBA's website for more information on how to apply for a disaster loan.

 

Information about the SBA Paycheck Protection Program

The CARES Act established a new guaranteed loan program at SBA for small businesses to cover payroll during the immediate crisis. The Paycheck Protection Program:

•Supports $349 billion in 100 percent guaranteed, low interest, no fee loans of up to $10 million with repayment deferred for at least six months
•Forgives up to 100% of the loan if the borrower has retained the same number of employees as when they received the loan. 

Who is Eligible? 

Small and Medium sized businesses up to 500 employees, non-profits, independent contractors and the self-employed. This includes churches but only to cover payroll costs of an associated business, like a thrift store.

How are Loans Made?

The SBA’s network of 2,500 7(a) lenders will be used to process these loans. There is also authority to fast track additional lenders to process and disburse these loans to reach as many small businesses as quickly as possible.

For more information about navigating the Paycheck Protection Program, click here.

Information on SBA Economic Injury Disaster Loans:

Process for Accessing SBA’s Coronavirus (COVID-19) Disaster Relief Lending
  • 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 to small businesses and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by the Coronavirus (COVID-19).
  • SBA’s Office of Disaster Assistance will coordinate with the state’s or territory’s Governor to submit the request for Economic Injury Disaster Loan assistance.
  • Once a declaration is made for designated areas within a state, the information on the application process for Economic Injury Disaster Loan assistance will be made available to all affected communities as well as updated on our website: SBA.gov/disaster.
  • SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance per small business 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 without credit available elsewhere; businesses with credit available elsewhere are not eligible. 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.
  • To apply for SBA EIDLs, click here. For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.

Is Your State Eligible for SBA EIDLs?




Information on SBA Debt Relief:

The CARES Act,  allocated $17 billion for debt relief for current and new SBA borrowers. 

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.


Information on SBA Emergency Economic Injury Grants:

The CARES Act created a new $10 billion grant program, leveraging SBA’s Office of Disaster Assistance infrastructure, to provide small businesses with quick, much-needed capital. Small businesses, cooperative, ESOPS, private non-profits, independent contractors and the self-employed are eligible to receive up to $10,000 to cover immediate payroll, mortgage, rent, and other operating expenses while they wait for additional relief to be processed.

To apply, click here.

Committee Fact Sheets:

Small Business Unemployment Insurance FAQs
Womens Business Centers Contact List
Lead Small Business Development Centers by State
SBA District Office Master List
State by State Lender List
Small Business Guide to CARES Act

CARES Act Flow Chart for Small Businesses
Summary of Senate CARES Act for SBA

Overview of COVID-19 Relief for Small Business Act of 2020
Small Business Provisions in the Families First Coronavirus Response Act
SBA Economic Injury Disaster Loans FAQ

Committee Press Releases:

Chairwoman Velázquez Releases Comprehensive Small Business COVID-19 Relief Bill 
Chairwoman Velázquez on Aid to Small Businesses During COVID-19 Epidemic
Velázquez Postpones March Hearings

Velázquez Introduces Legislation to Create Direct Lending Program for Small Businesses Impacted By COVID-19

Velázquez Gathers Small Business Owners to Testify on Impact of Coronavirus

Chairwoman Velázquez Secures Disaster Loan Funding for Small Businesses Hurt by Coronavirus
Chairwoman Velázquez Announces Coronavirus Hearing

Committee Hearings:

The Impact of Coronavirus on America’s Small Businesses- 3/10/20

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