Small Business Association Low-interest Federal Disaster Loans
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
• SBA’s Economic Injury Disaster Loans: up to $2 million in assistance
• Interest rate: 3.75% for small businesses, 2.75% for Non-profits
• Long-term repayments up to a maximum of 30 years
The Paycheck Protection Program
Excellent summary at Osler.com
Receive 2-year, 1% interest rate loans for the lesser of US$10 million and 2.5 times their average monthly U.S. payroll costs in 2019 (subject to a US$100,000 annual salary cap per employee).
The CARES Act provides that up to the full principal amount and any accrued interest of the loan can be forgiven if the loan is used for payroll costs for employees whose principal place of residence is in the United States and payments for mortgage interest, rent and utilities for the 8 week period after the loan is made; and the employee and compensation levels are maintained.
