Small Business Financing for Coronavirus (COVID-19)

Helpful resources for your business

COVID-19 Relief Financing

The Coronavirus (COVID-19) pandemic has created an unprecedented global event.  Working families and Small Business’s have been hit the hardest.  GRP Funding can help you get through this difficult time. We’ve created this resource especially for you so you can learn more about the government financial relief programs underway.

CARES Act

$350 billion allocated for the Paycheck Protection Program (PPP)

SBA 7(a) Paycheck Protection Program 

The Paycheck Protection Program is a loan created to directly incentivize a small business to keep their workers on the payroll. The SBA will FORGIVE THE LOAN if all employees are kept on the payroll for eight weeks and the relief loan is used for payroll, interest payments on mortgages, rent, or utilities.  

SBA 7(a) PPP Highlights

• Eligible for small businesses with 500 or fewer employees (including nonprofits, veteran organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors)

• Loans will be calculated at 2.5 average monthly payroll costs

• Term – 2 years, Interest Rate – 1.0%, up to $10M

No fees will be charged by the government or lender

No personal guarantee or collateral is required

• Loans will be deferred for 6 months

• Must apply prior to June 30, 2020 to be eligible

Forgiveness Criteria

Loans provided to the small business  can be forgiven if the funds are used for payroll costs, interest on mortgages, rent or utilities.

• 75% of the funds received must be used for payroll

• Forgiveness is based on the employer maintaining employee salary levels

• Forgiveness may be reduced if full-time headcount declines or if wage decrease

• Businesses have until June 30, 2020 to restore full-time employment and wage levels

Good to Know

• The 7(a) loan proceeds can be used to pay-off a 7(b) Disaster Loan

• A business can have both a 7(a) and 7(b) loan simultaneously

• Payroll costs are capped at $100,000 on an annualized per employee

What’s Next?

Starting April 3, 2020, small businesses and sole proprietors can start applying for PPP.  Beginning April 10, 2020, self-employed individuals and independent contractors can make application.

 

IMPORTANT - $350B sounds like a lot of money but it will go quick, so make sure to make application as quickly as possible

 

How & Where to Make Application

Small businesses can make application through any existing 7(a) lender or through any federally insured depository, credit union, or credit system institution participating.

 

For more information, please visit the SBA website

Other Assistance – SBA 7(b)

The SBA also offers small businesses suffering substantial economic injury from COVID-19 a low-interest federal disaster loan through its SBA 7(b) Economic Injury Disaster Loan (EIDL) program ..

SBA 7(b) EIDL Highlights

• Loans up to $2M in assistance

Term – 30 years, Interest Rate – 3.75% for profit companies, 2.75% for non-profits

• Loans will be deferred for 12 months

• Must apply prior to December 31, 2020 to be eligible

 

EIDL Advance – Small businesses are eligible to apply for an emergency EIDL Advance of $10,000 which can be made available within three days of a successful application. This loan advance will not have to repaid.

 

For more information, please visit the SBA website

rectangle.png

HOURS:

Mon - Fri 8AM - 6PM EST

1350 MAIN STREET, SUITE 200

SPRINGFIELD, MA 01103

  • GRP Funding Facebook
  • GRP Funding Linked In
  • GRP Funding Twitter
©2020 GRP Funding Holdings, LLC