Currently set to Index
Currently set to Follow

COVID-19 Small Business Resources

Updated May 18, 2020.

CARES Act

Signed into law on March 27, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, contained $379 billion in relief for American workers and small businesses. It provided funding for the Economic Injury Disaster Loan (EIDL) program as well as the Paycheck Protection Program and provided immediate loan payment relief for current SBA 7(a) borrowers.

On April 23, Congress passed the Paycheck Protection Program and Health Care Enhancement Act that delivers an additional $320 billion in relief for American workers and small businesses.

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

  • 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 coronavirus/COVID-19.
  • 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.
  • Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries. Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.
  • 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.

You are encouraged to work with your current local lender to expedite the process. Some banks will not be servicing new clients for the Payment Protection Program. Below is a list of member banks who are participating in the PPP.

Participating Local Lenders:

 


The SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020.

This relief is not available for Paycheck Protection Program loans or Economic Injury Disaster loans. Borrowers do not need to apply for this assistance. It will be automatically provided as follows:

For loans not on deferment, SBA will begin making payments with the next payment due on the loan and will make six monthly payments.

For loans currently on deferment, SBA will begin making payments with the next payment due after the deferment period has ended, and will make six monthly payments.

For loans made after March 27, 2020 and fully disbursed prior to September 27, 2020, SBA will begin making payments with the first payment due on the loan and will make six monthly payments.

SBA has notified 7(a), 504 and Microloan Lenders that it will pay these borrower loan payments. Lenders have been instructed to refrain from collecting loan payments from borrowers. If a borrower’s payment was collected after March 27, 2020, lenders were instructed to inform the borrower that they have the option of having the loan payment returned by the lender or applying the loan payment to further reduce the loan balance after SBA’s payment.

Borrowers should contact their lender if they have any questions regarding this payment relief.


At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.

On March 18, the U.S. Small Business Administration (SBA) designated all counties in Georgia eligible for low-interest federal disaster loans for working capital to small businesses suffering economic injury during this national event.

  • SBA’s Economic Injury Disaster Loans (EIDL) offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
  • These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses and 2.75% for non-profits.
  • SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

Be sure to review the recently released information about U.S. Small Business Administration Economic Injury Disaster Loan Advance below. 

 

 

Applicants may also call SBA’s Customer Service Center at 1.800.659.2955 or email disastercustomerservice@sba.gov.


At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.

This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.

  • 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.

 

 

Applicants may also call SBA’s Customer Service Center at 1.800.659.2955 or email disastercustomerservice@sba.gov.


Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.

Terms

  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan

Program Comparison

 

 

The Gwinnett Chamber prides itself on offering accurate and up-to-date information so you can make informed decisions in this time of ambiguity. However, the current environment is fluid and changes do not always funnel down immediately.

Sources
U.S. Small Business Administration; University of Georgia Small Business Development Center; The White House

Resource Partners

Gwinnett County has a solid small business support system. We are here for you. Contact the below organizations if you need assistance.

X