Dear Colorado Lending Source Community,
As you are likely aware a stimulus package was approved this morning and it contains a great deal of funding for the Small Business Administration to help small businesses.
It includes the following key provisions:
Small Business Debt Relief - The bill would require SBA to pay all principal, interest, and fees on all existing SBA loan products, including 7(a), Community Advantage, 504, and Microloan programs, for six months to provide relief to small businesses negatively affected by COVID-19
- $17 billion would be provided to implement this section
Emergency Economic Injury Disaster Loan Grants - Expedited access to capital through Emergency Grants with an advance of $10,000 within three days of application
Paycheck Protection Program - $350 billion to support loans to small employers with 500 employees or less plus those that meet the SBA size standards
- Loan size will equal 250% of an employer’s average monthly payroll with a maximum loan amount of $10 million
- Covered payroll costs include salary, wages, and payment of cash tips, employee group health care benefits (including insurance premiums, retirement contributions, and covered leave)
- Fee waivers, automatic payment deferments for one year, and no prepayment penalties will reduce the cost to lenders and borrowersLoans will be available immediately through 800 existing SBA-certified lenders (banks and credit unions)
- SBA express loan maximums will increase from $350,000 to $1 million (these loans act as a revolving line of credit for working capital.
Entrepreneurial Assistance- $265 million in grants to SBA resource partners, including Small Business Development Centers and Women’s Business Centers for business counseling, training, and assistance related to COVID - 19
- Plus $10 million to the Minority Business Development Agency to provide services
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