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SBA Support For Coronavirus Related Economic Disruptions

Summary

An SBA presentation on coronavirus relief, naming Administrator Jovita Carranza, with national and North Carolina figures. It describes the Paycheck Protection Program, with loans equal to 250% of an employer's average monthly payroll up to $10 million for employers with 500 employees or fewer, and Economic Injury Disaster Loans of up to $2 million at 3.75% for small businesses and 2.75% for nonprofits, with emergency grants of up to $10,000. Paycheck Protection Program initial results list loans to over 1.6 million applicants and over $340 billion of relief, with 74% of loans under $150,000 and more than $8 billion going to 39,250 North Carolina applicants. A second PPP table, as of May 5 at 5 p.m., shows $181 billion approved nationally at an average loan of $79,000 and $12.2 billion in North Carolina. EIDL results list 38,984 national loans approved for $7,967,174,880.

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                                SBA’s Disaster Declaration
                                 Makes Loans Available

                                The U.S. Small Business Administration (SBA) 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).


                                Upon a request received from a state’s or territory’s Governor, SBA will
                                issue under its own authority, as provided by the Coronavirus
                                Preparedness and Response Supplement Appropriations Act that was
                                recently signed by the President, an Economic Injury Disaster Loan
                                declaration.




Administrator Jovita Carranza
                 SBA’s Disaster Assistance for Small Business




Paycheck Protection Program                            Small Business Debt Relief                            Economic Injury Disaster Loans
A multi-billion-dollar loan program for small          $17 billion for the Small Business Administration     Multi-billion-dollar funding for SBA Economic Injury
businesses and nonprofits to maintain existing         (SBA) to cover 6 months of payments for small         Disaster Loans (EIDL), with emergency grants of up
workforce and help pay for other expenses like rent,   businesses with existing SBA loans, including 7(a),   to $10,000 to provide immediate relief for small
mortgage, and utilities.                               Community Advantage, 504, and Microloan               business operating costs.
                                                       programs.
Paycheck Protection Program
The Paycheck Protection Program is a multi billion-dollar loan program that applies to:
• Small employers with 500 employees or fewer, as well as those that meet the current Small
  Business Administration (SBA) size standards
• Self-employed individuals and “gig economy” individuals; and
• Nonprofits, including 501(c)(3) organizations and 501(c)(19) veteran organizations, and
  tribal business concerns with under 500 employees.


Loan amount:
• The size of the loans equal 250% of an employer’s average monthly payroll, up to a
  maximum loan amount of $10 million.


Use of funds:
• Covered payroll costs include salary, wages, and payment of cash tips (up to an annual rate
  of pay of $100,000); employee group health care benefits, including insurance premiums;
  retirement contributions; and covered leave.
• Loans can also be used to pay interest payments on mortgage obligations, rent, utilities,
  and interest on other debt obligations previously incurred.
Paycheck Protection Program
Initial results:
• Nationally provided loans to over 1.6 million applicants
• Over $340 billion of economic relief
• 74% of the loans were under $150,000
• North Carolina applicants received more than $8 billion going to 39,250 applicants


Paycheck Protection Program:
(As of May 5 at 5 p.m.)

• Overall
      • National loans 2.3 mil+ approved for $181 billion
      • Average loan amount of $79,000
      • Lenders: 5,400+

• Lenders > $50B:
      • National loans 1.1 mil+ approved for $96.1 billion

• Lenders btw $10B – $50B:
      • National loans 339,000+ approved for $27.7 billion

• Lenders < $10B:
      • National loans 919,000+ approved for $57.2 billion

• Lender size < $1B:
      • National loans 465,000+ approved for $27 billion

                                      NORTH CAROLINA
                               80,000+ approved for $12.2 billion
Economic Injury Disaster
Loans and Grants
On March 6, the U.S. Congress passed a COVID-19 preparedness and
response supplemental funding bill that designated COVID-19 as a disaster
under the Small Business Administration (SBA) and provided $20 million to
support the SBA’s administration of loan subsidies to small businesses of up
to $2 million per loan.


On March 27, Congress passed the CARES Act, adding $10 billion to the loan
program and waiving or relaxing several loan eligibility requirements.
Economic Injury Disaster
Loans and Grants
How much can I borrow?
Eligible entities may qualify for loans up to $2 million.


The interest rates for this disaster are:
• 3.75% for small businesses
• 2.75% for nonprofit organizations


Terms of the loans are decided on a case-by-case basis and on ability to repay,
but they can have a maximum length of 30 years; based on a business’ actual
economic injury and financial needs.


Loans can be approved based on a credit score; tax returns are no longer
required.


Eligibility for these working capital loans are based on the size (must be a small
business), type of business, and its financial resources.
Economic Injury Disaster
Loans and Grants
EIDL Results:
• National loans - 38,984 approved for $7,967,174,880
• North Carolina loans - 1,120 approved for $221,116,800


EIDL Advance Grant Results:
• National grants - 1,192,519 processed $4,805,897,000
• North Carolina grants - 30,689 processed $128,078,000
Next Steps
Applicants may visit SBA’s secure website at www.sba.gov/coronavirus


Paycheck Protection Program lender list www.sba.gov/nc


Disaster loan information and application forms may also be obtained by calling the SBA’s
Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or
by sending an email to disastercustomerservice@sba.gov.
Assistance From SBA
Partners
• Free One-on-one business consulting
• Assistance with information that will be required for a Loan
• Each application and every business is different
• Assistance in preparing financial statements
• Assistance with Cash Forecasts, especially for new businesses
• Updating your Business Plan
• Get a checkup for your business


For the nearest office, visit: https://www.sba.gov/local-assistance
Questions
           Office Contact Information
                        N o r t h C a r o l i n a D i s t r i c t O ff i c e
                 U . S . S m a l l B u s i ne s s Ad m i n i s t r a t i on




(704) 344-6563                                                                 C h a r l o tt e . N C @ s b a . g o v

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