SBA Loans and Resources
The Small Business Administration has a webpage exclusively to provide information on Coronavirus (COVID-19) small business guidance and loan resources.
Small Business Loans and Grants Available (or Soon to Be Available)
- Forgivable Loans (Paycheck Protection Program): Congress established a new Paycheck Protection Program (PPP) that provides small businesses (and certain non-profits) with zero-fee loans of up to $10 million. Up to 8 weeks of average payroll and other costs will be forgiven if the business retains its employees and their salary levels. If the small business has already laid-off workers, you can rehire these workers and then can take advantage of the provisions in this loan program.
- Economic Injury Disaster Loans and Grants: 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. Congress also provided funding for a provision to provide an advance of $10,000 to small businesses and nonprofits that apply for an SBA economic injury disaster loan (EIDL) within three days of applying for the loan. The grant does not need to be repaid, even if the grantee is subsequently denied an EIDL, and may be used to provide paid sick leave to employees, maintain payroll, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent, and mortgage payments.
- SBA Debt Relief: The SBA is currently providing immediate debt relief to small businesses with standard SBA 7(a), 504, or microloans. Under this provision, SBA will cover all loan payments for existing SBA borrowers, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out an SBA loan before September 27, 2020.
- Resources for Business Counseling Services: The CARES Act included $275 million in grant funding to Small Business Development Centers (SBDCs), Women’s Business Centers (WBCs), as well as the Minority Business Development Agency’s Business Centers (MBDCs), to provide mentorship, guidance, and expertise to small businesses. To connect with the WA Small Business Development Centers, click here.
A How-to Guide for Small Business Owners: Click here to access a helpful guide for small business owners that provides a detailed breakdown and answers to frequently asked questions about major programs and initiatives that will soon be available from the Small Business Administration (SBA) to address these needs, as well as some additional tax provisions that are outside the scope of SBA.
Other SBA Resources:
- To contact your local Small Business Administration (SBA) District Office, click here.
- Subscribe to SBA for updates for regular e-mail alerts.
New Paid Leave Requirements for Employers (Effective April 1, 2020)
The U.S. Department of Labor released new information regarding how American workers and employers will benefit from the protections and relief offered by the Emergency Paid Sick Leave Act and Emergency Family and Medical Leave Expansion Act, both part of the Families First Coronavirus Response Act (FFCRA). The department’s Wage and Hour Division (WHD) posted a temporary rule issuing regulations pursuant to this new law, effective April 1, 2020. The paid sick leave and expanded family and medical leave provisions of the FFCRA apply to certain public employers, and private employers with fewer than 500 employees.
WHD offers a number of plain-language compliance assistance materials to explain FFCRA’s benefits and requirements. Tools include a Fact Sheet for Employees and a Fact Sheet for Employers, available in both English and Spanish, and an expansive list of Questions and Answers addressing the questions WHD has most frequently received from stakeholders to date. Available guidance also includes two new posters, one for federal workers and one for all other employees, available in both English and Spanish, that will fulfill notice requirements for employers obligated to inform employees about their rights under this new law, Questions and Answers about posting requirements, and a Field Assistance Bulletin describing WHD’s 30-day non-enforcement policy.
Tax Credits for Businesses Subject to Paid Leave Requirements
The U.S. Department of the Treasury and the Internal Revenue Service are offering small and mid-size employers more information on refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing their employees paid sick and family leave wages related to COVID-19.
Click HERE to access the Frequently Asked Questions about the Tax Credit.
Fraudulent Loans, Assistance, and Scams
Beware of Fraudulent Loans/Assistance: Watch out for “assistance” that look suspicious – please subscribe to SBA’s Updates and visit SBA’s official website at www.sba.gov to obtain telephone numbers and emails in regards to SBA programs, and of their partners. Please ensure all official communications regarding the SBA and your businesses is a correspondence with the email address with ‘@sba.gov.’