Small businesses with no more than 500 employees or meet the applicable size standard as defined by the SBA suffering economic injury as a result of the Coronavirus (COVID-19). A 501(c)(3) nonprofit organization (including religious organizations), a 501(c)(19) veterans organization or tribal business concern described in section 31(b)(2)(C) that has less than 500 employees.
What is the maximum loan amount?
Loans up to $10,000,000.
Loan amounts cannot exceed 2.5x average monthly payroll costs during the 1-year period before the date on which the loan is made (compensation per employee above $100,000 excluded).
What is the interest rate and fees?
The interest rate is fixed at 1.00% and there are no application or origination fees.
What are the eligible uses of funds?
These loans may be used to cover the costs of the following expenses incurred between February 15 and June 30, 2020:
Interest on Mortgages
Qualified Utility payments
What are the loan provisions?
No prepayment penalty.
Payments of principal and interest will be deferred for 6 months
Maximum 2-year maturity after application for loan forgiveness.
No collateral or personal guarantee required.
Is it true that the loan will be forgiven?
The loan amounts will be forgiven as long as:
The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and