Economic relief for small businesses suffering economic injury as a result of the coronavirus (COVID-19) is now available to those in designated states and territories through the U.S. Small Business Administration (SBA).
CohnReznick has assembled a national task force to assist clients with filing for these low-interest SBA federal disaster loans and providing required financial documentation. Contact one of the leaders highlighted on this page or your CohnReznick engagement team.
SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and are available to small businesses and private, non-profit organizations to provide working capital and alleviate economic injury from any temporary loss of revenue. Funds can be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
The interest rate for SBA’s loans is 3.75% for small businesses and 2.75% for non-profits. Long-term repayments are available to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
For a current list of states and territories eligible for disaster loans, visit SBA’s site.
InsightSBA releases procedures for changes of ownership of PPP loan recipientsClaudine Cohen, Stephanie O’RourkWhether transactions must be approved by SBA depends on the status of the Paycheck Protection Program (PPP) loan and the character of the transaction. Read more.
InsightPPP loan forgiveness: Recent guidance on eligible costs, owner compensation, forgiveness reductions, and moreStephanie O’RourkRead the latest guidance on what costs qualify for Paycheck Protection Program (PPP) loan forgiveness, how to calculate forgiveness reductions, and more.
InsightNew thresholds for SBA’s 8(a) government contracting assistance program: Who qualifies now?A final rule has expanded eligibility for “economically disadvantaged” small businesses competing for certain government contracts. Learn more.
InsightQ&A: Appealing an SBA decision on a PPP loan or PPP loan forgivenessStephanie O’RourkAn SBA interim final rule establishes who can appeal Paycheck Protection Program loan decisions, when and how appeals must be filed, and more. Read highlights.