CLARIFICATION ON DIFFERENT COVID-RELATED SBA PROGRAMS
Hi all, I just spoke with my lender and wanted to share the following in case its helpful.
We need to distinguish SBA programs across four points:
(1) Payment Assistance on Existing SBA Loans - these are applications you submit to your original lender to get 3-4 months deferral on paying your existing SBA loans. These are being approved/processed relatively fast.
(2) EIDL - the economic injury disaster loan program. This went live last week and is what the SBA is struggling to handle due to overwhelming application volume, though they say these will be approved in[redacted]days. This can be up to $2M per business based on estimated loss and is at a 3.75% rate.
(3) SBA Express Bridge Loans- $25K quickly processed loans from your original SBA lender to cover imminent needs, to be paid back w/ EIDL if approved.
(4) the covered loan program announced in yesterday's stimulus package. This is the $350B in small business loans to cover monthly expenses like payroll, rent and utilities. The loans would NOT have to be repaid if businesses maintained their workforce.
It's #4 that we all want more info on now but it's not yet available. I'm creating this thread so we can share more info on #4 as it becomes available. I will do the same!