On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law by President Trump in an effort to provide economic relief in the wake of the COVID-19 (Coronavirus) pandemic. Below, we outline some of the existing subsidies being made available by the United States Small Business Administration.

SBA Debt Relief Program

  • Provides relief to small businesses impacted by COVID-19
    • SBA will pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
    • SBA will pay the principal and interest of current 7(a) loans for a period of 6 months.
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SBA Express Bridge Loans

  • Allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork.
  • Can provide support to small businesses to help overcome the temporary loss of revenue they are experiencing.
  • Can be term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster Loan (EIDL).
  • Terms – Up to $25,000 and can be repaid in part or in full from EIDL loan. The maximum interest rate is 6.5%.
  • Eligibility –  Small businesses impacted by COVID-19. The applicant must have had an operating business on March 13, 2020. The maximum term is seven years. The borrower may be required to repay the loan in full or in part if the borrower is approved for long-term disaster financing.
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If you have any questions, please reach out to your personal Sciarabba Walker contact or email us at info@swcllp.com.