SBA Loans/Grants Available to Members

BEGINNING 4/3/20:

CHEAT SHEET Provided by the NC Small Business & Technology Development Center.

The Small Business Administration is offering stimulus loans/grants to businesses affected by the COVID-19 pandemic (the CARE Act).  For the most up-to-date information click on the links to each program, which will take you directly to the Small Business Administration program web-pages.  If you're interested in applying first contact your business banking relationship specialist.  It is my understanding the banks are going to prioritize working with existing customers.
 
The Paycheck Protection Program: this program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons).  Most up-to-date application HERE.

• The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll).

• Loan payments will be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

• Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  

• Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

• This loan has a maturity of 2 years and an interest rate of 1%

• You can apply for a PPP loan in addition to another SBA loans or “bridge loans” but the funds can’t be used for the same purpose

  • For Example, if you applied for the NC Golden Leaf Foundation NC COVID-19 Rapid Recovery Loan Program

  • Max loan amount is 250% of your average monthly payroll over the last 12 months, up to $10M

 
The Economic Injury Disaster Loans (EIDLs) this program is for sole proprietors, independent contractors, ESOPs, 501 (c)(d)(e) [HBA qualifies as a 501(c)6] and several other employer types (see link) qualify for the $10,000 emergency cash grant.    

• Borrowers can receive $10,000 in an emergency grant cash advance that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue loss. 

• You apply for these loans directly through the SBA at www.SBA.gov/disaster. 

• There are no loan fees, guarantee fees or prepayment fees.

• As of March 30, the new streamlined online application is up and running. Application to Economic Injury for the Coronavirus (rather than physical damage due to another disaster; that is a different declaration number).
  
  It is my understanding that you can apply for both the PPP & EIDL if you meet eligibility requirements. 
  
  The SBA is making changes quickly, visit their COVID-19 Funding Options page for the most up-to-date on all of the disaster-related programs they can offer businesses. 
  
  OTHER RESOURCES:
  NAHB PAGE ON SBA PROGRAMS