Economic Injury Disaster Loan (EIDL)
The process is now streamlined if you have an unfinished application through the online portal or a printed version, you will need to log in and apply using the new streamlined process. Helpful steps for applying:
- Go to https://covid19relief.sba.gov
- Select the appropriate entity-most practices should select a business with not more than 500 employees
- Review and confirm if your state and county have been designated as a “disaster zone” due to COVID-19
- Proceed with the submission based on your business and ownership structure
- Important note: you will not request a specific loan amount. Once your application is received, your SBA case partner will work with you to determine your economic losses and working capital needs
- The process should not take longer than 30 minutes to complete.
- Practice patience and persistence as there is a lot of traffic on the site, which may create delays.
- On March 27, 2020, President Trump signed into law the CARES Act, which provided additional assistance for small business owners and non-profits, including the opportunity to get up to a $10,000 Advance on an Economic Injury Disaster Loan (EIDL). This Advance may be available even if your EIDL application was declined or is still pending, and will be forgiven.
- Eligible applicants for an EIDL can receive a $10,000 emergency grant within three days of application (through Dec. 31, 2020)
- There is no obligation to repay the grant.
- To receive the $10,000 emergency grant, it is not necessary to have an approved EIDL loan. However, if you can secure a PPP loan, the $10,000 grant will be subtracted from the forgiveness amount
- NOTE: The Paycheck Protection Program (PPP) created by the CARES Act prohibits borrowers from taking out two loans for the same purpose. For more information on PPP loans, visit uschamber.com/sbloans
- RESOURCES: Guide to SBA’s Economic Injury Disaster Loans
Areas eligible for SBA disaster loans
- Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19)
Economic Injury Disaster Advance Loan
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application. This loan advance will not have to be repaid.
Apply for the Loan Advance here.
Paycheck Protection Program (PPP)
- Legislation approved $349 Billion for PPP
- This loan intends to provide 8 weeks of payroll & certain overhead to keep workers employed.
- Can request a loan up to 10 Million
- Interest .5%
- Maturity 2 years
- No collateral or personal guarantees required
- No lender fees apply
- 100% Guaranteed from SBA
- Loan Payments differed 6 months
- Retroactive to 2/15/2020 through 6/30/2020
- Proposed to be available to apply for this loan starting April 3, 2020.
- This loan is available through SBA Certified Banks, which means you would apply for financing through a financial institution.
- Banks are awaiting formal guidance from the SBA regarding the lending parameters. SBA guidance will be required for any SBA certified lending institution to begin the formal application process.
- Start gathering financial documents to save you time during the application process. We are still awaiting further guidance from the SBA regarding the detailed list of financials required for the application.
- PPP Loans can be obtained up to 2.5 times your monthly payroll.
- SBA has 30 days to publish the rules regarding forgiveness
- Loan amounts will be forgiven if used for employee pay, rent, utilities, mortgage interest, and health insurance.
- Not more than 25% can be forgiven for non-payroll costs
- Eligibility: All business including nonprofits a 501 (c ) (3), veterans organizations a 501 (c ) (19), tribal concerns from section3131 (B) (2) (c ), sole proprietorships, self-employed and independent contractors with 500 or fewer employees no greater than the # of employees set by SBA as size standard for certain industries.
California Financial and Technical Assistance for Small Business
- The State of California is allocating $50 million to the Small Business Finance Center at California’s IBank to mitigate barriers to capital for those small businesses (1-750 employees) that may not qualify for federal funds (including businesses in low-wealth and immigrant communities). The $50 million allocation will be used to recapitalize the IBank Small Business Loan Guarantee Program.
- Disaster Relief Loan Guarantee Program: This disaster program provides guarantees for loans of up to $50,000 for small business borrowers in declared disaster areas.
US Chamber of Commerce ‘Save Small Business Fund’ Grant
The Save Small Business Fund is a grantmaking initiative offering short-term relief for small employers in the United States and its territories. Redding area businesses employing between 3 and 20 people are encouraged to apply.