Funds to be Replenished for SBA Small Business Relief Programs
It is expected a $484 billion package will be approved Friday April 24th to replenish Small Business Administration programs aimed at helping small businesses weather the negative impact of COVID-19 on the economy. New funding for the SBA programs is expected to be as follows:
Paycheck Protection Program
- $320 billion in additional funding to reopen the program for applications.
- Purpose is to provide loans for payroll (forgivable if 75% of funds received used for payroll) and certain operating expenses such as mortgage obligations, rent, utilities, and interest on pre-existing debt obligations.
- Terms: amounts based on 2.5x monthly payroll costs (up to $10 million), 1% interest rate, 2-year maturity, first payment deferred six months.
- Click here to locate a Paycheck Protection Program lender.
- $60 billion in additional funding to provide economic disaster loans for small businesses, of which $10 billion is allocated for Emergency Economic Injury Disaster grants.
- Applications may be completed through the SBA Portal.
- Click here for a video walk through of the application process.
- Economic Injury Disaster Loans offer low interest, long term loans up to $2 million. The first payment is deferred 12 months and loan funds may be used to maintain payroll, provide paid sick leave, meet increased costs, make rent or mortgage payments, as well as other expenses.
- The EIDL Loan is not forgivable.
- SBA Economic Injury Disaster Grants
- Businesses applying for an EIDL loan can request $1,000 per employee up to a maximum of $10,000 be disbursed immediately. The grant is forgivable.
If you need assistance with applying for the SBA EIDL loan or requesting the related grant, please see the Minnesota SBA District Website for trainings or call an SBDC center (State Office & Southeast Minnesota Office).
It is recommended you get in touch with an accountant, banker, or SBDC office to determine which program is best for your business as you may not be able to apply for more than one program. As always, keep checking the Dodge County EDA Economic Development Resources Page for a comprehensive list of available COVID-19 relief programs and information.