As a small business owner, you have options to help you through this difficult time.  The 2 main loan options are:

  • Economic Injury Disaster Loans (EIDLs)
  • SBA Cares Act Paycheck Protection Program Loans (PPPs)

We’ve shared some information on each of these programs below, there is also a helpful article on Nav on COVID disaster loans vs. paycheck protection loans.

Paycheck Protection Program

  • Loans are up 2.5 times your average monthly payroll.
  • The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
  • SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
  • You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
  • Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.

To Apply:

Reach out to your local bank to apply.

If your local bank is not participating, you can click below to apply at these various sources.

SBA Disaster Loan

  • Loans up to 2 million at 3.75 for up to 30-year term decided on case by case and 1 payment deferred for 1 year.
  • It can be used for fixed debt, payroll, accounts payable and other bills affected by the disaster.
  • Credit not available elsewhere.
  • Who’s Eligible? Small business, agricultural coops, aquaculture, non-profit.
  • Credit will be reviewed and repayment ability is based on pre-disaster conditions.
  • Disaster loan cannot be used to refinance existing debt.
  • They hope the process will take 18 days, possibly longer.
  • You could get up to $25K 5 days after your application is reviewed.

Needed to Apply:

  • In addition to the loan application:
    • Completed IRS Form 4506-Ts:
      • for owner
      • each principal that owns 20% or more
      • each general partner or managing member
      • each owner who owns more than 50% of an affiliate business
    • At least two (2) years complete business tax returns with all schedules
    • Personal Financial Statement for each applicant
    • Schedule of Liabilities for all fixed debts
  • Optional:
    • Items above plus 2 years complete financial statements
      • P&L, Balance Sheet, Cash Flow
      • Monthly revenue records for at least 2 years

Mr. Tim Holtkamp
McLennan Small Business Development Center
Business Advisor
Work: +1 (254) 299-8157‬
Mobile: +1 (254) 662-2222