Andonix is proud to partner with Fountainhead Commercial Capital to guide small businesses in need of emergency funding due to the coronavirus. For businesses that are forced to shut down or that are experiencing a sharp decline in orders, business continuity may depend on these measures. Here are some additional details from Fountainhead about the recently released emergency loan resources from the US government and how to apply for them.
Small Business Task Force unveils a $300B in Emergency Coronavirus Relief Package as part of the Keeping Workers Paid and Employed Act, Division A of the Coronavirus Aid, Relief, and Economic Security Act, includes:
- $300 billion in SBA 7(a) loans
- 100% government-guarantees through 12/31/20, then reverts
- Up to $10MM in loan size
- Currently eligible SBA borrowers AND not-for-profits
- Delegated (underwriting) authority — means expedited processing
- Borrowers can get this loan OR an EIDL (disaster) loan, not both
- Waives borrower and lender guarantee fees
The new law provides a “process” by which borrowers will be eligible for loan forgiveness in an amount equal to their payroll cost and costs related to debt obligations for the period between 3/1/20 and 6/30/20 – the amount of forgiveness will be reduced proportionally by the number of employees laid off during this time, excluding employees making in excess of $100k in this calculation. Lenders must verify payroll costs.
More details will be released in the hours/days ahead.