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SBA Loans during Covid 19

On Behalf of | Apr 10, 2020 | New York City

Below you will find a Basic Overview of the SBA Loan Program, the NYC Employee Retention Grant Program.
For additional information in applying for the within benefits, or assistance in the application process, please reach my firm
Basic Overview of SBA loans:
  • Can be used to pay fixed debts, payroll, accounts payable, other bills that cannot be paid, and refinance other long-term debts
  • Maximum interest rate for small businesses is 3.75%
  • Maximum interest rate for non-profits is 2.75%
  • Loan terms – maximum of 30 years
  • Loan Amount limit – $2,000,000.00 (loan limit will be waived if business is a major source of employment)
Basic Overview of the NYC Employee Retention Grant Program:
  • Available to small businesses in NYC’s five boroughs that have one to four employees, that have been operating for more than six months, and have no current tax liens or legal judgments. 
  • Can be used to cover 40% of payroll costs over the course of two months
  • Loan Amount limit – $27,000
  • Loan Requirement- must be able to show that the business lost 25% of their revenue due to the coronavirus.

Economic Injury Disaster Loan

The SBA’s Economic Injury Disaster Loan provides vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic. 

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19.

Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.

The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid.