SBA Loan Information

In response to the COVID-19 outbreak the federal goverment along with the Small Business Administration(SBA) are providing help for those businesses effected. We want to be sure you have this important information and are aware of the help that is available to you.

The Small Business Administration is offering loans to businesses during the COVID-19 pandemic. Businesses can apply for the Paycheck Protection Program beginning April 3rd through local lenders and the Economic Injury Disaster Loans at any time on the SBA website.

Loan applications open April 3rd and "only" $349 billion is allocated to the program; funds will go fast.

Paycheck Protection Program (PPP) Loans

An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

The Paycheck Protection Program will be available through June 30, 2020.



Who Can Apply

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons) affected by coronavirus/COVID-19.

How to Apply

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution and federally insured credit union that is participating. You should consult with your local lender as to whether it is participating in the program.

Lenders may begin processing loan applications as soon as April 3, 2020.

Loan Details and Forgiveness

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of .5%.

If you wish to begin your application, download the form below.



Watch this short YouTube Video on How To Apply!

Additional resources:
HARDI
TACCA 





HVAC Jerks Podcast
HVAC Jerks go through the SBA Loan process showing you how to navigate through the entire process from start to finish.