A new bipartisan spending package was passed in the US House of Representatives and the Senate. This package, when it is implemented, will provide $7 billion in federal funds to assist small businesses that suffer economic harm from the coronavirus outbreak. New information will be released once available.
The California Governor’s Office of Business and Economic Development (GO-Biz) provides IBank loans (there are a few types) for businesses from one to 750 employees (small businesses). CLICK HERE
Many businesses have business interruption insurance. Now is the time to contact your insurance agent to review your policy to understand precisely what you are and are not covered for in the event of an extended incident.
The Small Business Association (SBA) has developed Lender Match, a free online referral tool that connects small businesses with participating SBA-approved lenders within 48 hours.
- The federal Small Business Administration (SBA) is offering Disaster Loans for businesses, private nonprofits, homeowners and renters. The application link is now open for any California business wishing to apply for a disaster loan related to economic damage from the COVID-19 health crisis. CLICK HERE
- 7(a) program offers loan amounts up to $5,000,000 and is an all-inclusive loan program deployed by lending partners for eligible small businesses within the U.S. States and its territories. The uses of proceeds include: working capital; expansion/renovation; new construction; purchase of land or buildings; purchase of equipment, fixtures; lease-hold improvements; refinancing debt for compelling reasons; seasonal line of credit; inventory; or starting a business.
- Express loan program provides loans up to $350,000 for no more than 7 years with an option to revolve. There is a turnaround time of 36 hours for approval or denial of a completed application. The uses of proceeds are the same as the standard 7(a) loan.
- Community Advantage loan pilot program allows mission-based lenders to assist small businesses in underserved markets with a maximum loan size of $250,000. The uses of proceeds are the same as the standard 7(a) loan.
- 504 loan program is designed to foster economic development and job creation and/or retention. The eligible use of proceeds is limited to the acquisition or eligible refinance of fixed assets.
- Microloan program involves making loans through nonprofit lending organizations to underserved markets. Authorized use of loan proceeds includes working capital, supplies, machinery & equipment, and fixtures (does not include real estate). The maximum loan amount is $50,000 with the average loan size of $14,000.