SBA-Guaranteed Loans. Lending Partner - Loan - Small Business
Table of Contents
SBA Debt Relief
PPP: How to Find a Lender
PPP Forgiveness:
How & When to Apply
SBA Debt Relief
As a part of the CARES Act, SBA is authorized to pay up to three months of principal, interest, and any associated fees that borrowers owe for all 7(a), 504, and Microloans reported in regular servicing status (excluding PPP loans). The time period of relief depends upon when the loan was approved and disbursed.   Borrowers need not apply for this assistance.  SBA provides this assistance automatically as provided below: The SBA is authorized to pay three months of principal, interest, and any associated fees that borrowers owe for newly eligible first round loans. This includes 7(a) and 504 loans approved before September 27, 2020 and disbursed on or after September 28, 2020.The SBA is authorized to pay two months of principal, interest, and associated fees for second round loans, including 7(a) and 504 loans made on or before March 27, 2020 (except for loans made under the Community Advantage Program).New 7(a), 504, and micro loans approved during the period of February 1, 2021 and September 30, 2021 will receive three months of payments. Additionally, the Economic Aid Act also authorized more debt relief payments to 7(a), 504, and Microloan borrowers beyond the 6-month period prescribed in the CARES Act. For all loans approved and funded between February 1, 2021 and September 30, 2021 borrowers are eligible to receive PMI payments made on their behalf, with a maximum of $9,000 per borrower per month, based on the availability of funds. Please contact your Lender for questions on the availability of this assistance for your SBA loan. THE INITIATIVES DESCRIBED ABOVE ARE LIMITED TO THE LEVEL OF AVAILABLE FUNDING PROVIDED BY CONGRESS. PPP: How to Find a Lender Paycheck protection program, PPP The U.S. Small Business Administration continues to partner with lending institutions nationwide to deploy Paycheck Protection Program funding to small businesses across the U.S. Those who have not received a First or Second Draw PPP loan may not know where to begin. To start, you can use the SBA’s Lender Match. Lender Match will ask you for some basic information about your business and submit your request to approved SBA lenders. Those who are interested in working with you will then reach out with 48 hours of the application.  For those looking for a more localized lending experience, the SBA lists all the PPP lenders in your area on the Eligible PPP Lender Map. Understanding where to begin can help you identify the best option for your business going forward. If you have any questions about First or Second Draw PPP loans in Rhode Island, email RhodeIsland_DO@sba.govPPP Forgiveness: How & When to Apply A borrower can apply for forgiveness once all loan proceeds (for which the borrower is requesting forgiveness) have been exhausted. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within ten months after the last day of the Covered Period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their lender. To apply for loan forgiveness: 1. Contact your PPP Lender and complete the correct form: Your lender can provide you with either the SBA Form 3508SBA Form 3508EZSBA Form 3508S, or a Lender equivalent. Additionally, the SBA has recently announced that form 3508S will be used as the streamlined application for all loans $150,000 and less.  The 3508EZ and the 3508S are shortened versions of the application for borrowers who meet specific requirements. Your lender can provide further guidance on how to apply. 2. Compile your documentation: Payroll (provide documentation for all payroll periods that overlapped with the Covered Period or the Alternative Payroll Covered Period): Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period: Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state Payment receipts, canceled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount Non-payroll (for expenses that were incurred or paid during the covered period and showing that obligations or services existed before February 15, 2020): Business mortgage interest payments: Copy of lender amortization schedule and receipts verifying payments, or lender account statements Business rent or lease payments: Copy of current lease agreement and receipts or canceled checks verifying eligible payments Business utility payments: Copies of invoices and receipts, canceled checks or account statements This list of documents required to be submitted to the lender is not all-inclusive. 3. Submit the forgiveness form and documentation to your PPP Lender: Complete your loan forgiveness application and submit it to your lender with the re­quired supporting documents and follow up with your lender to submit additional documentation as requested. At this point, your lender has 60 days to review and submit your forgiveness application to the SBA. The SBA then has 90 days to send its decision to your lender, who will inform you of that decision.  4. Continue to communicate with your lender throughout the process: If SBA undertakes a review of your loan, your lender will notify you of the review and the SBA loan review decision. You have the right to appeal certain SBA loan review decisions. Your lender is responsible for informing you of the forgiveness amount paid by SBA and the date on which your first payment will be due, if applicable. EIDL Loans FAQs In response to the Coronavirus (COVID-19) pandemic, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for an Economic Injury Disaster Loan (EIDL). The deadline for EIDL applications has been extended to December 31, 2021 but only for those who have not already applied for an EIDL loan.  The EIDL program is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to COVID-19. Click the link below for a list of EIDL’s most frequently asked questions. EIDL FAQs twitter logo Follow us on Twitter for the most up-to-date information from the SBA.  Follow SBA Rhode Island Keep Up-To-Date With The Latest News From Our Office Pivoting to a new economy