The U.S Small Business Administration (SBA) and Federal Reserve have created special loan programs to help small to medium sized businesses that are struggling due to Coronavirus (COVID-19).
The following links include short descriptions. Please verify any details or requirements with the SBA or associated agency as these programs continue to be developed and may be modified.
We will do are best to keep this page up to date. These details were last updated: 4/10/2020
SBA RESOURCES IN English
SBA Loan Resources
https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resourcesSBA National Resource Guide
https://www.sba.gov/sites/default/files/2019-08/national-resource-guide.pdf**The National Resource Guide includes a service called SCORE which gives free business mentoring from retired executives.
SBA RESOURCES in Español
SBA Loan Resources
https://www.sba.gov/espanolSBA National Resource Guide
https://www.sba.gov/sites/default/files/2019-09/national-resource-guide-spanish.pdf**SCORE: La guía comercial nacional de la SBA habla sobre un servicio llamado SCORE.
FED program for small and mid-sized businesses in English:
Fed Announces Main Street Lending Program for Small and Mid-Sized Businesses
https://www.federalreserve.gov/newsevents/pressreleases/monetary20200409a.htmThe Board of Governors of the Federal Reserve System announced a $600 billion Main Street Lending program to support small and mid-sized businesses.
La Reserva Federal toma medidas adicionales para proporcionar hasta $ 2.3 billones en préstamos para apoyar la economía.
- For companies with up to 10,000 employees and $2.5 billion in revenue
- Available to borrowers that may have also received PPP loans
- Establishes two facilities: "New Loan" and "Expanded Loan"
- New loan sizes from $1 million up to $25 million
- Expanded loan sizes from $1 million up to $150 million
- Loan terms:
- 4-year unsecured term loans
- SOFR + 250-400 basis points
- No prepayment penalty
- Restrictions on compensation, stock repurchases, and distribution apply
- Many "direct loan" CARES Act restrictions on borrowers do not apply, including those that would have related to labor and offshoring
- Loan applications will be managed through the borrower's bank
A borrower that accepts a Main Street loan will be required to make several certifications and attestations,
- Attest that it requires financing because of the COVID-19 pandemic;
- Attest that it will make reasonable efforts to maintain its payroll and retain its employees during the term of the Eligible Loan;
- Attest that it will follow compensation, stock repurchase, and capital distribution restrictions that apply to direct loan programs under Title IV of the CARES Act 4003(c)(3)(A)(ii);
- Refrain from using the proceeds to repay other loan balances and refrain from repaying other debts of equal or lower priority (except mandatory principal payments); and
- Certify there are no conflicts of interest as described under CARES Act 4019.