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Interaction with SBA 7(a) Loan Eligibility
The availability of the 7(a) Loan is reduced by the amount of the EIDL, where the EIDL was applied for in relation to COVID-19.
Who is Eligible?
A business with not more than 500 employees;
Any individual who operates under a sole proprietorship, with or without employees, or as an independent contractor;
A cooperative with not more than 500 employees;
An ESOP with not more than 500 employees;
A tribal small business concern, with not more than 500 employees;
Private Non-Profit organizations
Small Agricultural Cooperative
Must have been in operation on January 31, 2020
Must have been impacted by COVID-19, and Loans will correlate to impact
There is no minimum credit score required, however, applicants must have a credit history acceptable to SBA
Up to $10,000.00 where needed by business due to issues related to COVID-19
The amount is to be determined by the SBA based on business’ need
The Grant is not required to be repaid.
The Grant reduces the amount of forgiveness available under the 7(a) Paycheck Protection Program.
Uses of Emergency Grant
Providing paid sick leave to employees unable to work due to the direct effect of the COVID–19
Maintaining payroll to retain employees during business disruptions or substantial slowdowns
Meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains
Making rent or mortgage payments; and
Repaying obligations that cannot be met due to revenue losses.
No personal guarantee required on advances and loans of not more than $200,000.00
No requirement that entity cannot obtain credit elsewhere
Business credit check required for loans of $200,000.00 or more
Collateral may be required for all EIDL loans over $25,000
Maximum Interest Rate: NY 3.750 percent.
Repayment terms up to a maximum of 30 years, SBA will determine by borrower