COVID-19 Relief Programs - ijaraCDC

COVID-19 Relief Programs

Link to  us on facebook for more details as they become available

Here is an outline of each program which should be enough to help you guide your clients through the different programs:

Small Business Debt Relief Program-

  • Eligible- 7a and 504 loans (not the PPP or Disaster loan)- CRE, business acquisition, etc…
  • Purpose- SBA will pay 6 months of payments including principal, interest and fees
  • Application
  • 7A- no action needed, automatically deferred
  • 504 1st TD- submit deferral like through our normal deferral process
  • 504 2nd TD- apply with SBA/CDC

Economic Injury Disaster Loans and Emergency Economic Injury Grants-

  • Also known as EIDL or Disaster Loan
  • This loan should be used as a “long term” capital injection into the company
  • Primarily used to offset operating expenses
  • Max of $2 million
  • 30 year term
  • 12 months of deferred payments
  • No prepayment penalties
  • Requires collateral- loans over $25,000
  • Apply directly with the SBA
  • $10,000 grant- must simply apply for with the SBA directly

Paycheck Protection Program-

  • Also known as PPP- SBA has hired over 1000 additional employees to help with this demand
  • This loan can be forgiven or reduce the amount owed if used properly and supporting documentation is provided
  • This loan should be intended for short term capital needs since it’s meant to cover 8 weeks of Payroll Cost
  • Given that this is only to cover 8 weeks, and we’re in this quarantined state until the end of April, this will not fix the long term effects of COVID 19
  • Use of proceeds- Salaries, medical leave, insurance premiums, mortgage payments, rent and utility payments
  • Use of proceeds- Salaries, medical leave, insurance premiums, mortgage payments, rent and utility payments
  • Applicants can apply for both the PPP and EIDL as long as they are not used for the same purpose
  • Example of how the funds can be used: PPP funds used for the first 8 weeks of Payroll Costs, then used the EIDL for other operating expenses that are not defined as Payroll Costs and/or use the funds after the initial 8 weeks of Payroll Costs
  • No personal guarantee or collateral required
  • 100% guaranteed by the SBA
  • No Guarantee fees paid by the borrower
  • The remaining balance that is not forgiven is set termed into a 2 year maturity at 0.5%
  • Payments are deferred 6 months, but accrue interest during this period
  • Complete the application entirely
  • Copies of payroll tax reports filed with the IRS
  • Forms 941 and 940
  • State income and unemployment with the last 12 months of payroll reports
  • CDD- if already on file, work on the recertification asap
  • FUNDING- loan proceeds must go into a CNB account- great opportunity to help with BD activities and win those new Prospects that we are in the process of bringing over

To apply for Disaster Relief Funds and up to $10k grant please visit: