Updated: New Round of SBA Funding Available

Updated: New Round of SBA Bank Funding Available!

Updated: 04/27/2020

Rebooted with an additional $310 billion in funding, the SBA resumed accepting Paycheck Protection Program applications from participating lenders as of Monday, April 27, 2020 at 10:30am EDT. For more on this news and how to apply, click here.

Original post:

The Small Business Administration (SBA) has been directed to fund new loans to small businesses that will be partially or fully forgivable if proceeds are spent on qualifying expenses. These loans will be offered and administered by banks participating in the SBA program. While these loans are not yet available, they will become available in coming weeks after the SBA provides guidance to the banks participating in the program. Thereafter, these special loans should be available to qualifying small businesses until June 30, 2020.

If you have interest in applying for a loan under this new program, we encourage you to reach out to a bank participating in SBA programs to discuss your options. A list of the 100 most-active SBA-qualified banks can be found at the following link: https://www.sba.gov/article/2020/mar/02/100-most-active-sba-7a-lenders

While the final parameters, terms and conditions of this loan program will be determined by the SBA and banks participating in this program, highlights of this new SBA loan program are expected to include the following:

Eligibility
Generally speaking, if your business (together with any affiliated businesses) has fewer than 500 employees, you should be eligible to participate.

Loan Amount
The loan is calculated by multiplying 2.5 and the trailing twelve-month average monthly payroll cost. For example, if the average payroll has been $30,000 over the past year, the loan amount could be $75,000. You will want to consult with an SBA-approved bank as to the specific considerations for your practice.

Loan Forgiveness
The loan principal is expected to be forgivable so long as proceeds are used for qualifying expenses (e.g., rent, payroll, utilities), except to the extent of workforce reduction.

Interest Rate
The maximum interest rate is 0.5% per annum.

Guarantees/Collateral
There should be no personal guarantees or collateral requirements.

Maturity
To the extent not forgiven, loans will have a maximum maturity of 2 years.

Application Submission
Applications will need to be submitted to SBA-approved lenders. Application forms, required certifications, and an outline of the application process can be found here: https://covid19relief.sba.gov/#/ We recommend following up with your SBA bank for details, additional requirements and restrictions.

RevolutionEHR is committed to staying on top of eye care industry updates on behalf of our customers. If you’re interested in partnering with us for EHR software and practice solutions, contact us at sales@revolutionehr.com or 877-738-3471 x1 or explore our solutions on our website.

RevolutionEHR provides this information with the understanding that authors or speakers are not experts in finance, regulatory policy or law. RevolutionEHR shares this information to the best of our knowledge and experience. The information is subject to change as the COVID-19 crisis evolves.

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