Information on the Small Business Association CARES Act
Currently, there are three loans under the CARES Act. The Federal government has announced that $350 billion is available under this program.
It is available to nonprofits and small businesses that fit the required qualifications.
This information is changing regularly, so please expect that this page may be updated from time to time.
While there are three loan options from the Small Business Association (SBA), it is only possible to receive a loan from one of these sources.
If you’d like to directly apply to the SBA visit
The SBA Economic Injury Disaster Loan (EIDL)
To be eligible for EIDL assistance, businesses must have sustained economic injury. This loan has a lower rate and longer repayment terms. However, it doesn’t offer any type of loan forgiveness. There is an opportunity for an advance of $10,000, which doesn’t need to be repaid.
Cap for Loan – $2 million. This cap contains both physical disaster loans and EIDLs. There are no upfront fees or early payment penalties.
Interest Rate – 3.75% for small businesses; 2.75% for non-profits
Deferments – Up to 6 months
Who is Eligible?
This part of the CARES act focuses on non-profit organizations 501c3s, veteran organization 501c19s and tribal businesses with less than 500 employees. It also covers eligible self-employed individuals, independent contractors and sole proprietors. It is not applicable to Nonprofits that receive Medicaid.
The SBA Paycheck Protection Program (PPP) Loan
To be eligible for EIDL assistance, businesses must have sustained economic injury. The PPP loan is based on payroll costs. That means it includes salary, wages, commissions, along with other related costs such as vacation pay, sick pay, family leave and local taxes. It doesn’t include federal payroll taxes or payroll costs for those making more than $100,000.
Cap for Loan – This loan is capped at 2.5 times the average payroll cost from last year. The maximum loan is $10 million.
Interest Rate – 1% with a maximum of 4%.
Deferments – Up to 6 months
Who is Eligible?
This part of the CARES act focuses on non-profit organizations 501c3s, veteran organization 501c19s and tribal businesses with less than 500 employees. It also covers eligible self-employed individuals, independent contractors and sole proprietors. It is not applicable to Nonprofits that receive Medicaid.
The SBA 7(a) Express Loan
The express loan was a previously existing SBA loan. The loan maximum has increased from $350,000 to $1 million.
Cap for Loan – $1 million
Interest rate – 4% maximum
Deferments – Up to 6 months
Who is Eligible?
This part of the CARES act focuses on non-profit organizations 501c3s, veteran organization 501c19s and tribal businesses with less than 500 employees. It also covers eligible self-employed individuals, independent contractors and sole proprietors. It is not applicable to Nonprofits that receive Medicaid.
If you’d like to directly apply to the SBA visit