Paycheck Protection Program
This program was passed as part of the CARES Act stimulus package was created to cover the payroll costs, utilities, rent, lease and interest on mortgages payments for business dealing with the impact of the COVID-19 / Coronavirus epidemic. This program will cover up to 10 weeks of a business’s payroll costs through a 10 year term loan with a 4% interest rate. Payments for this program are deferred for one year, and if a business keeps their employees for 4 months the entirety of the loan is forgiven, essentially converting the loan into a grant.
| Rates |
4% if not forgiven 0% if forgiven |
|---|---|
| Terms | Up to 10 years |
| Funding Amounts | Up to $10,000,000 |
| Collateral | Not required |
| Fees | 0% |
SBA Express Loans
SBA Express is a SBA 7(a) subprogram meant to provide faster financing than a standard SBA 7(a). With the 7(a) program, the lender will underwrite the loan, and then send to the SBA for final approval – which can take the SBA 2-3 weeks to approve. With the SBA Express program, the SBA turnaround is much quicker, taking only up to 72 hours for final SBA approval.
| Rates | $50,000 or less; prime +6.5% over $50,000; prime +4.5% |
|---|---|
| Terms | Up to 10 years |
| Funding Amounts | Up to $350,000 |
| Collateral | May be required |
| Fees | 0.25 – 3.0% |
SBA Disaster Loans
SBA Disaster Loans program is traditionally used to offer financing to cover destruction to personal and business property due to national disasters. Recently it has become the program of choice to help small businesses obtain financing to deal with the Coronavirus (COVID-19 & SARS-CoV-2) epidemic.
| Rates | 3.75% |
|---|---|
| Terms | Up to 30 years |
| Funding Amounts | Up to $2,000,000 |
| Collateral | May be required |
| Fees | 0% |
EIDL Cash Advance
As part of the Economic Injury Disaster Loan program the EIDL provides businesses applying for economic injury relief a $10,000 cash advance that does not need to be paid-back, regardless if they are approved for other disaster loan programs or not. The process is simple, requiring only an application and supporting documents be uploaded directly onto the SBA website using a drag and drop function.
| Rates | Free |
|---|---|
| Terms | None |
| Funding Amounts | $10,000 |
| Collateral | Not required |
| Fees | $0 |
SBA 7(a) loans
SBA 7(a) loan program is the standard SBA loan with varying short-term and long-term uses, including working capital, commercial real estate refinancing, business debt refinancing, equipment purchases, among other uses. These loans aren’t provided by the government itself, but instead encourages banks and other lenders to provide loans by guaranteeing that if a borrower fails to repay such loan, the government will cover most of their losses.
| Rates | $0 – $25,000 Prime + 4.25% $25,001 – $50,000 P + 3.25% Over $50,000 Prime + 2.25% |
|---|---|
| Terms | Up to 25 years |
| Funding Amounts | Up to $5,000,000 |
| Collateral | May be required |
| Fees | 0.25 – 3.75% |
SBA 504 Loans
SBA 504 loan program is used to help expand commercial owner/user real estate by a business, as well as replace & purchase commercial real estate and also heavy equipment while allowing you to conserve your working capital by only requiring a 10% down payment.
| Rates | 20 year: 2.804% 25 year: 2.878% |
|---|---|
| Terms | 10-25 years |
| Funding Amounts | Up to $20,000,000 |
| Collateral | Required |
| Fees | 0.5% |
SBA Veterans Advantage
SBA Veterans Advantage program is geared toward businesses owned by veterans of U.S. armed forces, as well as current active duty military service members who are in the military’s Transition Assistance Program (TAP). This program offers “fee relief” by reducing certain fees associated with most SBA loans.
| Rates | $50,000 or less; prime +6.5% over $50,000; prime +4.5% |
|---|---|
| Terms | Up to 10 years |
| Funding Amounts | Up to $350,000 |
| Collateral | May be required |
| Fees | Annual servicing fee of 0.55% |
SBA CAPLines
SBA CAPLines are used to finance of contracts, sub-contracts and/or purchase orders and other expenses associated with contracts, as well as accounts receivable and inventory. Can also use for expenses related to construction and renovation costs of eligible real estate projects. Additionally, can be used for short-term working capital and operating costs.
| Rates | Prime +2.25% to 4.75% |
|---|---|
| Terms | Up to 10 years |
| Funding Amounts | Up to $5,000,000 |
| Collateral | May be required |
| Fees | 2.00% – 3.75% |
Community Advantage
Community Advantage loan program provides for profits small businesses help with credit, management and technical assistance that are in under-served areas. In order to qualify a business must be creditworthy and meet the SBA’s size requirements.
| Factor rates | Prime +2.75% to 6% |
|---|---|
| Terms | 7-10 years |
| Funding Amounts | $250,000 |
| Collateral | Pledge available collateral |
| Fees | Low to High costs |
International Trade Loans
International Trade loan program offers small businesses financing to help with export loans to help with entering foreign markets and to expand their operation in such markets. This types of financing can come in the form of asset loans, working capital as well as refinancing of business debt.
| Rates | Prime +2.25% to 4.75% |
|---|---|
| Terms | 7 years for lines of credit 10 years for equipment and working capital 25 years for commercial real estate |
| Funding Amounts | Up to $5,000,000 |
| Collateral | First lien on real estate and equipment |
| Fees | 2.00 – 3.75% |
SBA Export Working Capital
SBA Express is a SBA 7(a) subprogram meant to provide faster financing than a standard SBA 7(a). With the 7(a) program, the lender will underwrite the loan, and then send to the SBA for final approval – which can take the SBA 2-3 weeks to approve. With the SBA Express program, the SBA turnaround is much quicker, taking only up to 72 hours for final SBA approval.
| Rates | Negotiated between the borrower and lender |
|---|---|
| Terms | Up to 36 months |
| Funding Amounts | Up to $5,000,000 |
| Collateral | Lien on collateral financed |
| Fees | 2.00 – 3.75% |
SBA Microloans
SBA Microloan program provides small loans to help small businesses and some nonprofit companies with startup and expansion costs. These loans aren’t provided by the SBA directly but, instead, provides funds to nonprofit community organizations who then disperse the funds to eligible small businesses and borrowers.
| Rates | 7.75 – 8.50% |
|---|---|
| Terms | Up to 6 years |
| Funding Amounts | Up to $50,000 |
| Collateral | Required |
| Fees | 2-5% |
