Loan Programs for Businesses Impacted by COVID-19

Share This Post

Small businesses, the backbone of the nation’s economy, are especially impacted by the spread of COVID-19 all around the country. At Core, we are here to help you and your business during these difficult times.

There are two SBA loan programs to help businesses during this time: Paycheck Protection Program Loan and Economic Injury Disaster Loan. We are encouraging clients to apply for these loans as soon as possible because we are expecting delays in funding due to the high volume of applicants.

Apply for SBA Paycheck Protection Program Loan

Who should apply?

Every business that is economically affected by COVID-19.

Where can you apply?

The Paycheck Protection Program is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This program provides eight weeks of cash flow assistance to businesses.

You can apply for the loan at any lending institution that is approved to participate in the program through the existing SBA lending program. This could be the bank that you use or a local bank in your area.

Since this act was just passed, we are expecting some banks not to have their system ready to take loan applications until the end of this week.

Who is eligible?

All small businesses with 500 and fewer employees are eligible. Also, sole proprietors, independent contractors, gig economy workers and the self-employed individuals are also eligible for the loan.

What is the maximum amount you can borrow?

You can borrow 250 percent of the average monthly payroll expenses, up to $10 million. The loan is intended to cover 8 weeks of payroll, health insurance, existing interest payments, rent and utility expenses. The 8 week period of time may be applied to any time frame between February 15, 2020 and June 30, 2020.

How can I use the funds so that the loan will be forgiven?

The amount of principal that will be forgiven is equal to the expense paid during the 8 week period of time. Payroll costs includes salaries (up to an annual rate of $100,000), hourly wages, cash tips, sick leave and health insurance premiums.

When is the loan forgiven?

The loan is forgiven at the end of the 8 week period of time after you borrow the money. You will be required to provide proof of payment for those expenses.

How much of the loan is forgiven?

The purpose of the loan is to help companies retain employees at their current payroll level. If you keep all your employees, the entire loan amount will be forgiven. For those companies that still laid off employees, the forgiveness will be reduced by the percentage decrease in the number of employees.

Will I be paying interest on the forgiven loan?

No. If the full portion of the loan is forgiven, the borrower is not responsible for the interest accrued on the loan. The remainder of the loan that is not forgiven will be repaid based on the terms of the loan.

What is the term of the loan and interest rate this is not forgiven?

The maximum term of the loan is 10 years and interest rates are cap at a maximum rate of 4%.

Will I need to provide a personal guarantee and collateral?

No. Collateral requirements and personal guarantees are waived, and the SBA has guaranteed 100 percent of the loans.


Apply for SBA Economic Injury Disaster Loan


This loan is designed to help meet working capital needs caused by the disaster and are available regardless of whether the business suffered any physical property damage.

Who should apply?

Every business that is economically affected by COVID-19.

Where can you apply?

This loan is being administered directly by the SBA. Apply online by visiting their website at

Who is eligible?

All businesses and non-profits are eligible with 500 or fewer employees.

What is the maximum amount you can borrow?

You can borrow up to $2,000,000.

What is the interest rate?

The interest rate is fixed at 3.75% for businesses and 2.75% for non-profits.

When is the repayment terms?

The loans have repayment terms of up to 30 years and have no prepayment penalties.

How can I use the money?

You can use the proceeds for working capital.

Can I consolidate debt?

No. Loan proceeds cannot be used to refinance long term debt.

Can I apply if I have an existing line of credit?


Will I need to provide a personal guarantee and collateral?

Yes. For larger loans, the SBA may require a personal guarantee or collateral.

How fast will I receive funds?

Funding can take up to 45 days to receive.