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Coronavirus COVID-19 CARES Act SBALoan & Grant Programs

For small business, one of the more important parts of federal coronavirus relief is the enhancement of the SBA 7(a) loan program, particularly the introduction of the Paycheck Protection Program. The Paycheck Protection Program gives the SBA the ability to guarantee hundreds of billions in loans to small businesses via a national network of banks. The Paycheck program provides a forgivable loan for eight or twenty-four weeks of cash-flow assistance to small businesses. Borrowers can also apply for an emergency grants to meet immediate needs, as well as for an Express Loan.
There have been two different times PPP loans have been made available to small businesses. The first was under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March of 2020. The second was with the Emergency Coronavirus Relief Act of 2020 (ECRA). A detailed comparison of the CARES Act and ECRA coronavirus relief loans, details on how to apply, articles and FAQs are below.
For information on State and Local coronavirus relief programs, please see this page.

Loan Comparison


Standard

CARES Act (Mar. 2020)

ECRA(Dec. 2020)

Loan Comparison
Paycheck Protection Program (PPP1 & PPP2)MORE INFORMATION

  • How to Apply

    StandardClick Here Learn How to Apply

    CARES Act (Mar. 2020)Click Here to Learn How to Apply for PPP1

    ECRA(Dec. 2020)Click Here to Learn How to Apply for PPP2


  • Who is Eligible

    Standard鈼忊赌俀耻补濒颈蹿颈别诲 鈼忊赌侳or profit businesses only鈼忊赌侲ngaged in, or propose to do business in, the U.S. or its territories鈼忊赌侽wner equity to invested鈼忊赌俇sed alternative financial resources, including personal assets, before seeking financial assistance鈼忊赌侼ot on the excluded business list

    CARES Act (Mar. 2020)鈼忊赌侽perating on February 15, 2020鈼忊赌侫ny business, nonprofit, veterans group, or tribal business with 500 or fewer employees including鈼忊赌係ole proprietors鈼忊赌侷ndependent contractors鈼忊赌侲ligible self-employed workers鈼忊赌侶otel and food service chains and franchisees with 500 or fewer employees per location

    ECRA(Dec. 2020)鈼忊赌侽perating on February 15, 2020鈼忊赌侫ny business, nonprofit, veterans group, or tribal business with 300 or fewer employees (or alternative SBA size standard per industry)鈼忊赌25% reduction of gross receipts in any one quarter in 2020 as compared to that same quarter in 2019


  • Allowed uses

    Standard鈼忊赌侫cquire land鈼忊赌侾urchase a building鈼忊赌侰onvert, expand or renovate buildings鈼忊赌侫cquire and install fixed assets鈼忊赌侫cquire inventory鈼忊赌侾urchase supplies and raw materials鈼忊赌侾urchase a business鈼忊赌係tart a business鈼忊赌侺easehold improvements鈼忊赌俆erm working capital鈼忊赌俁efinance certain debts

    CARES Act (Mar. 2020)In addition to normal uses:鈼忊赌侾ayroll costs, including payments for vacation, parental, family, medical or sick leave; severance payments; payments required for group health care benefits (including insurance premiums), retirement benefits, and state and local employment taxes鈼忊赌侷nterest payments on any mortgage obligations or other debt obligations incurred before February 15, 2020 (but not any payments or prepayments of principal) 鈼忊赌俁ent payments鈼忊赌俇迟颈濒颈迟颈别蝉鈼忊赌係alaries, but cannot be used for compensation of individual employees, independent contractors, or sole proprietors in excess of an annual salary of $100,000; compensation of employees with a principal place of residence outside the United States; or leave wages already covered by the Families First Coronavirus Response Act鈼忊赌侽ther debt obligations

    ECRA(Dec. 2020)In addition to normal uses:鈼忊赌侾ayroll costs, including payments for vacation, parental, family, medical or sick leave; severance payments; payments required for group health care benefits (including insurance premiums), retirement benefits, and state and local employment taxes鈼忊赌侷nterest payments on any mortgage obligations or other debt obligations incurred before February 15, 2020 (but not any payments or prepayments of principal) 鈼忊赌俁ent payments鈼忊赌俇迟颈濒颈迟颈别蝉鈼忊赌係alaries, but cannot be used for compensation of individual employees, independent contractors, or sole proprietors in excess of an annual salary of $100,000; compensation of employees with a principal place of residence outside the United States; or leave wages already covered by the Families First Coronavirus Response Act鈼忊赌侽ther debt obligations鈼忊赌侫dditional covered expenses including operating costs; supplier costs; property damage costs; and worker protection costs


  • Maximum Loan

    Standard$5M

    CARES Act (Mar. 2020)Lesser of: average fixed payroll costs X 2.5 timesor $10M max

    ECRA(Dec. 2020)Lesser of: average fixed payroll costs X 2.5 timesor $2M max; X 3.5 times payroll for NAICS 72 restaurant, lodging, food services businesses


  • Interest Rate

    StandardVariable: Prime + 2.25% to 4.75% depending on amount and term of loanFixed: 5% to 8%

    CARES Act (Mar. 2020)1%

    ECRA(Dec. 2020)1%


  • Term

    Standard25 years for real estate
    10 years for equipment
    10 years of working working capital or inventory loan

    CARES Act (Mar. 2020)5 years

    ECRA(Dec. 2020)5 years


  • Fees

    Standard2% - 3% of loan

    CARES Act (Mar. 2020)Waived

    ECRA(Dec. 2020)Waived


  • Prepayment Penalties

    StandardFor certain terms loans 15 years or more

    CARES Act (Mar. 2020)Waived

    ECRA(Dec. 2020)Waived


  • Collateral

    StandardNone up to $25K. For loans exceeding $350K, SBA requires maximum collateral up to principal amount

    CARES Act (Mar. 2020)Waived

    ECRA(Dec. 2020)Waived


  • Payment deferment

    StandardN/A

    CARES Act (Mar. 2020)When SBA remits loan forgiveness amount to bank if borrower applies for forgiveness within 10 months after end of loan period; or 10 months from end of covered period if no forgiveness applied for

    ECRA(Dec. 2020)When SBA remits loan forgiveness amount to bank if borrower applies for forgiveness within 10 months after end of loan period; or 10 months from end of covered period if no forgiveness applied for


  • Loan forgiveness

    StandardN/A

    CARES Act (Mar. 2020)Forgiveness for 8 or 24 weeks (borrower's choice) from date of loan origination for:鈼忊赌侾ayroll costs鈼忊赌侻ortgage interest payments鈼忊赌俁ent payments鈼忊赌俇tility paymentsNOTE: Forgiveness contingent on keeping employees at 60% or greater of prior wages, or proportional reduction

    ECRA(Dec. 2020)Forgiveness for 8 or 24 weeks (borrower's choice) from date of loan origination for:鈼忊赌侾ayroll costs鈼忊赌侻ortgage interest payments鈼忊赌俁ent payments鈼忊赌俇tility payments鈼忊赌侽ther covered operating costs; supplier costs; property damage costs; and worker protection costs NOTE: Forgiveness contingent on keeping employees at 60% or greater of prior wages, or proportional reduction


  • Funding source

    StandardSBA matches Lender

    CARES Act (Mar. 2020)SBA matches Lender and pays Borrower's Interest and principal if deferred

    ECRA(Dec. 2020)SBA matches Lender and pays Borrower's Interest and principal if deferred


  • SBA guarantee to lender

    Standard85% < $150K > 75%

    CARES Act (Mar. 2020)100%

    ECRA(Dec. 2020)100%

Paycheck Protection Program (PPP1 & PPP2)MORE INFORMATION

  • How to Apply

    StandardClick Here Learn How to Apply

    CARES Act (Mar. 2020)Click Here to Learn How to Apply for PPP1

    ECRA(Dec. 2020)Click Here to Learn How to Apply for PPP2


  • Who is Eligible

    Standard鈼忊赌俀耻补濒颈蹿颈别诲 鈼忊赌侳or profit businesses only鈼忊赌侲ngaged in, or propose to do business in, the U.S. or its territories鈼忊赌侽wner equity to invested鈼忊赌俇sed alternative financial resources, including personal assets, before seeking financial assistance鈼忊赌侼ot on the excluded business list

    CARES Act (Mar. 2020)鈼忊赌侽perating on February 15, 2020鈼忊赌侫ny business, nonprofit, veterans group, or tribal business with 500 or fewer employees including鈼忊赌係ole proprietors鈼忊赌侷ndependent contractors鈼忊赌侲ligible self-employed workers鈼忊赌侶otel and food service chains and franchisees with 500 or fewer employees per location

    ECRA(Dec. 2020)鈼忊赌侽perating on February 15, 2020鈼忊赌侫ny business, nonprofit, veterans group, or tribal business with 300 or fewer employees (or alternative SBA size standard per industry)鈼忊赌25% reduction of gross receipts in any one quarter in 2020 as compared to that same quarter in 2019


  • Allowed uses

    Standard鈼忊赌侫cquire land鈼忊赌侾urchase a building鈼忊赌侰onvert, expand or renovate buildings鈼忊赌侫cquire and install fixed assets鈼忊赌侫cquire inventory鈼忊赌侾urchase supplies and raw materials鈼忊赌侾urchase a business鈼忊赌係tart a business鈼忊赌侺easehold improvements鈼忊赌俆erm working capital鈼忊赌俁efinance certain debts

    CARES Act (Mar. 2020)In addition to normal uses:鈼忊赌侾ayroll costs, including payments for vacation, parental, family, medical or sick leave; severance payments; payments required for group health care benefits (including insurance premiums), retirement benefits, and state and local employment taxes鈼忊赌侷nterest payments on any mortgage obligations or other debt obligations incurred before February 15, 2020 (but not any payments or prepayments of principal) 鈼忊赌俁ent payments鈼忊赌俇迟颈濒颈迟颈别蝉鈼忊赌係alaries, but cannot be used for compensation of individual employees, independent contractors, or sole proprietors in excess of an annual salary of $100,000; compensation of employees with a principal place of residence outside the United States; or leave wages already covered by the Families First Coronavirus Response Act鈼忊赌侽ther debt obligations

    ECRA(Dec. 2020)In addition to normal uses:鈼忊赌侾ayroll costs, including payments for vacation, parental, family, medical or sick leave; severance payments; payments required for group health care benefits (including insurance premiums), retirement benefits, and state and local employment taxes鈼忊赌侷nterest payments on any mortgage obligations or other debt obligations incurred before February 15, 2020 (but not any payments or prepayments of principal) 鈼忊赌俁ent payments鈼忊赌俇迟颈濒颈迟颈别蝉鈼忊赌係alaries, but cannot be used for compensation of individual employees, independent contractors, or sole proprietors in excess of an annual salary of $100,000; compensation of employees with a principal place of residence outside the United States; or leave wages already covered by the Families First Coronavirus Response Act鈼忊赌侽ther debt obligations鈼忊赌侫dditional covered expenses including operating costs; supplier costs; property damage costs; and worker protection costs


  • Maximum Loan

    Standard$5M

    CARES Act (Mar. 2020)Lesser of: average fixed payroll costs X 2.5 timesor $10M max

    ECRA(Dec. 2020)Lesser of: average fixed payroll costs X 2.5 timesor $2M max; X 3.5 times payroll for NAICS 72 restaurant, lodging, food services businesses


  • Interest Rate

    StandardVariable: Prime + 2.25% to 4.75% depending on amount and term of loanFixed: 5% to 8%

    CARES Act (Mar. 2020)1%

    ECRA(Dec. 2020)1%


  • Term

    Standard25 years for real estate
    10 years for equipment
    10 years of working working capital or inventory loan

    CARES Act (Mar. 2020)5 years

    ECRA(Dec. 2020)5 years


  • Fees

    Standard2% - 3% of loan

    CARES Act (Mar. 2020)Waived

    ECRA(Dec. 2020)Waived


  • Prepayment Penalties

    StandardFor certain terms loans 15 years or more

    CARES Act (Mar. 2020)Waived

    ECRA(Dec. 2020)Waived


  • Collateral

    StandardNone up to $25K. For loans exceeding $350K, SBA requires maximum collateral up to principal amount

    CARES Act (Mar. 2020)Waived

    ECRA(Dec. 2020)Waived


  • Payment deferment

    StandardN/A

    CARES Act (Mar. 2020)When SBA remits loan forgiveness amount to bank if borrower applies for forgiveness within 10 months after end of loan period; or 10 months from end of covered period if no forgiveness applied for

    ECRA(Dec. 2020)When SBA remits loan forgiveness amount to bank if borrower applies for forgiveness within 10 months after end of loan period; or 10 months from end of covered period if no forgiveness applied for


  • Loan forgiveness

    StandardN/A

    CARES Act (Mar. 2020)Forgiveness for 8 or 24 weeks (borrower's choice) from date of loan origination for:鈼忊赌侾ayroll costs鈼忊赌侻ortgage interest payments鈼忊赌俁ent payments鈼忊赌俇tility paymentsNOTE: Forgiveness contingent on keeping employees at 60% or greater of prior wages, or proportional reduction

    ECRA(Dec. 2020)Forgiveness for 8 or 24 weeks (borrower's choice) from date of loan origination for:鈼忊赌侾ayroll costs鈼忊赌侻ortgage interest payments鈼忊赌俁ent payments鈼忊赌俇tility payments鈼忊赌侽ther covered operating costs; supplier costs; property damage costs; and worker protection costs NOTE: Forgiveness contingent on keeping employees at 60% or greater of prior wages, or proportional reduction


  • Funding source

    StandardSBA matches Lender

    CARES Act (Mar. 2020)SBA matches Lender and pays Borrower's Interest and principal if deferred

    ECRA(Dec. 2020)SBA matches Lender and pays Borrower's Interest and principal if deferred


  • SBA guarantee to lender

    Standard85% < $150K > 75%

    CARES Act (Mar. 2020)100%

    ECRA(Dec. 2020)100%

Loan Comparison
SBA 7(b) Economic Injury Disaster Loan (EIDL)
SBA 7(b) Economic Injury Disaster Loan (EIDL)

  • How to Apply

    StandardClick Here to Learn How to Apply

    CARES Act (Mar. 2020)Click Here to Learn How to Apply for a Disaster Loan

    ECRA(Dec. 2020)Same, but now targeted toward low income borrowers


  • Allowed Uses

    StandardWorking capital for ordinary and necessary operating expenses

    CARES Act (Mar. 2020)Working capital for ordinary and necessary operating expenses

    ECRA(Dec. 2020)Same


  • Maximum Loan

    Standard$2M

    CARES Act (Mar. 2020)$2M

    ECRA(Dec. 2020)Same


  • Interest Rate

    StandardUp to 4%

    CARES Act (Mar. 2020)Businesses 3.75%Nonprofits 2.75%

    ECRA(Dec. 2020)Same


  • Term

    Standard30 years maximum

    CARES Act (Mar. 2020)30 years maximum

    ECRA(Dec. 2020)Same


  • Turn Around Time

    Standard2 to 3 weeks or longer

    CARES Act (Mar. 2020)Same day

    ECRA(Dec. 2020)Same


  • Collateral

    StandardNone up to $25K.
    For loans exceeding $350K, SBA requires maximum collateral up to principal amount

    CARES Act (Mar. 2020)Waived

    ECRA(Dec. 2020)Same


  • SBA EIDL Grant

    StandardNone

    CARES Act (Mar. 2020)Up to $10K ($1K per employee) dispersed within three days for 鈼忊赌Startups鈼忊赌Cooperatives and 鈼忊赌ESOPs with fewer than 500 employees, and 鈼忊赌Any individual operating as a sole proprietor or an independent contractor

    ECRA(Dec. 2020)Same

SBA 7(b) Economic Injury Disaster Loan (EIDL)
SBA 7(b) Economic Injury Disaster Loan (EIDL)

  • How to Apply

    StandardClick Here to Learn How to Apply

    CARES Act (Mar. 2020)Click Here to Learn How to Apply for a Disaster Loan

    ECRA(Dec. 2020)Same, but now targeted toward low income borrowers


  • Allowed Uses

    StandardWorking capital for ordinary and necessary operating expenses

    CARES Act (Mar. 2020)Working capital for ordinary and necessary operating expenses

    ECRA(Dec. 2020)Same


  • Maximum Loan

    Standard$2M

    CARES Act (Mar. 2020)$2M

    ECRA(Dec. 2020)Same


  • Interest Rate

    StandardUp to 4%

    CARES Act (Mar. 2020)Businesses 3.75%Nonprofits 2.75%

    ECRA(Dec. 2020)Same


  • Term

    Standard30 years maximum

    CARES Act (Mar. 2020)30 years maximum

    ECRA(Dec. 2020)Same


  • Turn Around Time

    Standard2 to 3 weeks or longer

    CARES Act (Mar. 2020)Same day

    ECRA(Dec. 2020)Same


  • Collateral

    StandardNone up to $25K.
    For loans exceeding $350K, SBA requires maximum collateral up to principal amount

    CARES Act (Mar. 2020)Waived

    ECRA(Dec. 2020)Same


  • SBA EIDL Grant

    StandardNone

    CARES Act (Mar. 2020)Up to $10K ($1K per employee) dispersed within three days for 鈼忊赌Startups鈼忊赌Cooperatives and 鈼忊赌ESOPs with fewer than 500 employees, and 鈼忊赌Any individual operating as a sole proprietor or an independent contractor

    ECRA(Dec. 2020)Same

Loan Comparison
SBA Express Loan Program
SBA Express Loan Program

  • How to Apply

    StandardClick Here to Learn How to Apply

    CARES Act (Mar. 2020)Click Here to Learn How to Apply for an Express Loan

    ECRA(Dec. 2020)Same


  • Maximum Loan 

    Standard$350K

    CARES Act (Mar. 2020)$1M until December, then $500K

    ECRA(Dec. 2020)


  • Allowed Uses 

    Standard鈼忊赌侺ong-term working capitalAccounts payable, purchasing inventory, and other operational expenses 鈼忊赌侾roviding short-term working capital鈼忊赌係easonal financing, contract performance, construction financing, and/or export鈼忊赌侾urchasing real estatePurchasing equipment, furniture, machinery, supplies, and materials鈼忊赌侰overing construction and/or renovation costs鈼忊赌侲stablishing or acquiring a new business, or expanding an existing business鈼忊赌俁efinancing existing business debt (so long as the lender and ultimately the SBA are not in a position to sustain a loss through refinancing)

    CARES Act (Mar. 2020)鈼忊赌Operating capital

    ECRA(Dec. 2020)


  • Term

    Standard7 years maximum

    CARES Act (Mar. 2020)7 years maximum

    ECRA(Dec. 2020)Same


  • Turn Around Time

    Standard36 hours

    CARES Act (Mar. 2020)36 hours

    ECRA(Dec. 2020)Same


  • Collateral

    StandardNone up to $25KLender discretion up to $350K maximum

    CARES Act (Mar. 2020)None up to $25K. Lender discretion up to $350K maximum

    ECRA(Dec. 2020)Same

SBA Express Loan Program
SBA Express Loan Program

  • How to Apply

    StandardClick Here to Learn How to Apply

    CARES Act (Mar. 2020)Click Here to Learn How to Apply for an Express Loan

    ECRA(Dec. 2020)Same


  • Maximum Loan 

    Standard$350K

    CARES Act (Mar. 2020)$1M until December, then $500K

    ECRA(Dec. 2020)


  • Allowed Uses 

    Standard鈼忊赌侺ong-term working capitalAccounts payable, purchasing inventory, and other operational expenses 鈼忊赌侾roviding short-term working capital鈼忊赌係easonal financing, contract performance, construction financing, and/or export鈼忊赌侾urchasing real estatePurchasing equipment, furniture, machinery, supplies, and materials鈼忊赌侰overing construction and/or renovation costs鈼忊赌侲stablishing or acquiring a new business, or expanding an existing business鈼忊赌俁efinancing existing business debt (so long as the lender and ultimately the SBA are not in a position to sustain a loss through refinancing)

    CARES Act (Mar. 2020)鈼忊赌Operating capital

    ECRA(Dec. 2020)


  • Term

    Standard7 years maximum

    CARES Act (Mar. 2020)7 years maximum

    ECRA(Dec. 2020)Same


  • Turn Around Time

    Standard36 hours

    CARES Act (Mar. 2020)36 hours

    ECRA(Dec. 2020)Same


  • Collateral

    StandardNone up to $25KLender discretion up to $350K maximum

    CARES Act (Mar. 2020)None up to $25K. Lender discretion up to $350K maximum

    ECRA(Dec. 2020)Same

Illustration

Emergency Relief 性视界

鈼忊赌侰ash Flow Analysis鈼忊赌俆ax Planning鈼忊赌俆ax Extension Preparation鈼忊赌俆ax Appeals and Tax Resolution鈼忊赌係tate and Local Tax Relief鈼忊赌係pecial Deductions and Credits鈼忊赌係 Corps and Partnership Budgeting鈼忊赌侰 Corp Budgeting鈼忊赌係ales and Use Tax Relief鈼忊赌係BA Loan Consulting

How to Apply for a CARES Act SBA Loan or Grant

Here鈥檚 what you will need to apply for a CARES Act SBA loan or grant

How to Apply for a Paycheck Protection Program (PPP) Loan - Applications Due by August 8th

We are guided by efficient work with clients. Here鈥檚 what you will need to apply for an SBA Paycheck Protection Program Loan:

How to Apply for an SBA Disaster Loan or Grant

We are guided by efficient work with clients. Here鈥檚 what you will need to apply for an SBA Economic Injury Disaster Loan unless the SBA or your lender decides to accept an expedited application:

  • 1

    Complete the SBA Loan Application

    1

    Complete the SBA Loan Application

  • 2

    Complete the Personal Background and Financial Statement

    2

    Complete the Personal Background and Financial Statement

  • 3

    Prepare Your Business Financial Statements

    3

    Prepare Your Business Financial Statements

  • 4

    Prepare Your Ownership and Affiliations Lists

    4

    Prepare Your Ownership and Affiliations Lists

  • 5

    Collect Your Business Certificates and Licenses

    5

    Collect Your Business Certificates and Licenses

  • 6

    Complete Your Loan Application History

    6

    Complete Your Loan Application History

  • 7

    Gather Your Income Tax Returns for the Last 3 Years

    7

    Gather Your Income Tax Returns for the Last 3 Years

  • 8

    Prepare Personal R茅sum茅s for the Principal(s)

    8

    Prepare Personal R茅sum茅s for the Principal(s)

  • 9

    Prepare a Business Overview and History

    9

    Prepare a Business Overview and History

How to Apply for an SBA Express Loan

We are guided by efficient work with clients. Here鈥檚 what you will need to apply for an SBA Express Loan unless the SBA or your lender decides to accept an expedited application:

  • 1

    Complete the SBA Loan Application

    1

    Complete the SBA Loan Application

  • 2

    Complete the Personal Background and Financial Statement

    2

    Complete the Personal Background and Financial Statement

  • 3

    Prepare Your Business Financial Statements

    3

    Prepare Your Business Financial Statements

  • 4

    Prepare Your Ownership and Affiliations Lists

    4

    Prepare Your Ownership and Affiliations Lists

  • 5

    Collect Your Business Certificates and Licenses

    5

    Collect Your Business Certificates and Licenses

  • 6

    Complete Your Loan Application History

    6

    Complete Your Loan Application History

  • 7

    Gather Your Income Tax Returns for the Last 3 Years

    7

    Gather Your Income Tax Returns for the Last 3 Years

  • 8

    Prepare Personal R茅sum茅s for the Principal(s)

    8

    Prepare Personal R茅sum茅s for the Principal(s)

  • 9

    Prepare a Business Overview and History

    9

    Prepare a Business Overview and History

Related Blogs

Understanding SBA Disaster Loans And What They Mean For You

Are you a small business owner struggling financially due to the COVID-19 outbreak? The SBA is offering Economic Injury Disaster Loans of up to $2 million.

SBA Disaster Loans During The Coronavirus Outbreak

The U.S. Small Business Administration (SBA) has never faced a challenge like the COVID-19 outbreak. 性视界 has the latest on SBA disaster loans.