COVID-19 Small Business Resource Information

Small Business Financing

These program have been developed specifically to assist companies in dealing with the effects of the Coronavirus. 

The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced today that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter. Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6 in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.

Key PPP updates include:

  • PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
  • PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
  • The PPP provides greater flexibility for seasonal employees;
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan. 

 

A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

 

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

The new guidance released includes:

For more information on SBA’s assistance to small businesses, visit sba.gov/ppp or treasury.gov/cares. 

  • Economic Injury Disaster Loan - U.S. Small Businesss Administration *REOPENED*

    • The SBA is offering low interest federal disaster loans for working capital to small businesses and non-profit organizations that are suffering substantial economic injury as a result of COVID-19 in all U.S. states, Washington D.C., and territories.

    • These loans may be used to pay debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact, and that are not already covered by a Paycheck Protection Program loan.  The interest rate is 3.75% for small businesses.  The interest rate for non-profits is 2.75%.

    • To keep payments affordable for small businesses, SBA offers loans with long repayment terms, up to a maximum of 30 years. Plus, the first payment is deferred for one year.

    • In addition, small businesses and non-profits may request, as part of their loan application, an EIDL Advance of up to $10,000. The EIDL Advance is designed to provide emergency economic relief to businesses that are currently experiencing a temporary loss of revenue. This advance will not have to be repaid, and small businesses may receive an advance even if they are not approved for a loan.

    • The SBA is also assisting small businesses and non-profits with access to the federal forgivable loan program, the Paycheck Protection Program, which is currently accepting applications until June 30, 2020.

    • For additional information, please visit the SBA disaster assistance website at SBA.gov/Disaster.

       

  • PA DCED/CDFI COVID-19 Relief Statewide Small Business Assistance program

    FACT SHEET HERE
  • The GRANT APPLICATION WILL GO LIVE AT 9AM ON TUESDAY, JUNE 30TH.   Applicants will access the application from the rising tide website at www.therisingtide.org
  • DCED will distribute the funding to the Pennsylvania CDFI Network, which will then administer the funding in the form of:

    • Grants to cover operating expenses for the duration of the shutdown and the transition period to re-opening

    • Grants to cover technical assistance, including training and guidance, for business owners as they stabilize and relaunch their businesses

    • Debt payment relief for CDFI Pennsylvania borrowers

    • Loan loss reserves for CDFIs

Eligibility

  • All businesses must apply through an eligible CDFI and meet the program requirements which, at a minimum, include:
  • The business was in operation on February 15, 2020 and if required paid income taxes to the state and federal government, as reported on individual or business tax returns
  • COVID-19 has had an adverse economic impact and makes this grant request necessary to support the ongoing operations of the applicant
  • The grant will be used to cover COVID-19 related costs
  • During the period beginning on June 1, 2020 and ending on December 31, 2020, the applicant has not and will not receive another grant under this state program

Eligible businesses must apply through an eligible CDFI and check HERE for updates on the programs applications and implementation. 

Contact Chris Hudock at Rising Tide for more information: chudock@caclv.org

Existing financing programs that may be of assistance (not specific to the Coronavirus):

    Technical Support

    Workforce Support

     

    AttachmentSize
    PDF icon SBA Coronavirus Loan Program Fact Sheet90.25 KB
    PDF icon sbfp_covid-19_guidelines.pdf156.56 KB