On May 4th, Warren Haggerty, with the SBA, addressed the Rotary Club of Nashua regarding communicating the SBA messages throughout the state. He shared his screen to inform members of the activities of the SBA relating to Economic Recovery. Please feel free to contact Warren, 603-225-1400, or email Newhampshire_do@sba.gov.
Two primary programs currently for small business owners, EIDL and the PPP loan. There is still funding available in the 2nd wave of federal funding. You need to work through your local lender to get the needed applications. Funds from round 1 went thru $391 billion dollars in 2 weeks. The 2nd wave added $310 billion added to the PPP program. 2.2 million loans so far. The is about $145 billion remaining at this time. Average loan size is $76000 on the second wave and was $200K on the first wave.
The EIDL (Economic Injury Disaster Loans) loans started before the PPP loans, 6000 advances have gone out so far across NH with a range of $1000 to $10000. It is a grant and does not need to be repaid. The loans have a low interest rate between 2-3% depending on the business type. Long repayment terms and a delay in start of repayment is allowed.
The EIDL is based on number of employees at $1000 per person up to $10000. The application is very simple and short and can be done online.
The PPP program funds are targeted for payroll and if 75% is used for payroll, the loan will be forgiven and no repayment is needed. It is intended to allow employers to rehire and pay employees and get them off the unemployment programs. The other 25% can be used for business mortgage interest, rent, utilities. It covers 8 weeks of payroll expenses. No lender charges.
Generally, lenders are SBA approved and a list is on the SBA website. Checking with your local banker is a good first step.
SBA Express Bridge Loans are for those with a business who has an SBA business relationship with a SBA bank already. It allows quick access of up to $25000. It provides cash while waiting for and EIDL or PPP loan to be approved or funded.
You can get on the SBA email/newsletter list that is found on the website for the SBA. A brief Q & A followed.