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

Resource Information
Funder Small Business Administration
Eligibility For Profit Organization, Individual, Nonprofit Organization, Tribal Organization
Resource URL: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program
Sector Economic Development/Job Training
Grant Amount $0 - $10,000,000
Deadline Closed