Small Business Administration 7A Loans/Forgiveness
Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the SBA’s 7A Loan program was expanded to include a “Paycheck Protection” program. The program provides federally-guaranteed loans that may be used for payroll costs, rent, utilities, mortgage interest (not principal), and interest on the debt. Loans are available for up to a 10-year term at 4 percent interest, with special loan forgiveness provisions. Loan forgiveness is available for the amount actually paid for payroll costs, salaries, benefits, rent, utilities, and mortgage interest during an 8-week period following loan disbursement if all employees are kept on the payroll, essentially making it a grant. Borrowers must apply for loan forgiveness.
Eligibility: 501(c)(3) nonprofit organizations, businesses, tribal business concerns, veteran organizations, self-employed individuals, independent contractors. Organizations must employ less than 500 people to be eligible.
Amount: Up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
Deadline: July 6, 2020
|Funder||Small Business Administration|
|Eligibility||For Profit Organization, Individual, Nonprofit Organization, Tribal Organization|
|Sector||Economic Development/Job Training|
|Grant Amount||$0 - $10,000,000|