During the COVID-19 pandemic, I am committed to supporting small businesses through economic hardship, especially underserved businesses and nonprofits owned by minorities, women, veterans, and working families.
The CARES Act, enacted on March 27, expanded eligibility to participate in U.S. Small Business Administration (SBA) programs to all businesses, private non-profit organizations, veterans' organizations, tribal businesses, and cooperatives employing no more than 500 people, as well as sole proprietors, independent contractors, and self-employed individuals. Click here to access the CARES Act Small Business Owner's Guide.
On Thursday, April 23, I voted to approve an additional $310 billion in funding for the Paycheck Protection Program (PPP). $60 billion of these funds is set aside for community-based lenders, small banks, and credit unions, which are more committed to making capital accessible to the communities they serve.
I also voted to include $50 billion for Economic Injury Disaster Loans (EIDL) and $10 billion for emergency economic injury grants. This bill replenished EIDL and PPP funding for the SBA that was exhausted by April 16.
Paycheck Protection Program (PPP)
The PPP provides low-interest, SBA-backed loans up to $10 million
to cover payroll costs, mortgage interest, rent, and utilities retroactive to February 15, 2020 through June 30, 2020.
Loan details include the following:
- One percent interest rate
- Forgivable if 75 percent of the loan is used for payroll costs within 8 weeks of receipt
- Applications are submitted through your business' main financial partner which will have information on its timeline for application and approval of PPP loans
PPP loans can also be used for compensation or income of a sole proprietor, independent contractor, or self-employed individual. If a member of your business is a contractor (1099), they must apply for the PPP separately.
The Paycheck Protection Program Liquidity Facility (PPPLF) went live on April 9 to provide loans from the Federal Reserve to banks participating in the PPP. The Federal Reserve's facility will support the effectiveness of the PPP by extending credit to financial institutions that make PPP loans, using such loans as collateral. Click here for FAQs on the PPPLF.
Economic Injury Disaster Loan (EIDL)
The EIDL program provides targeted, low-interest loans of up to $2 million
for operating costs, like payroll, that have been severely impacted by COVID-19 since January 31, 2020.
Loan details include the following:
The deadline to apply is December 31, 2020.
- 3.75 percent interest rate for small businesses
- 2.75 percent interest rate for private non-profit organizations
- Long-term repayment plans with a maximum of 30 years
- 12-month deferment for first payments
- Two to three week wait time to receive aid
To apply for an EIDL, please visit https://disasterloan.sba.gov/ela/
. Applicants may also call SBA's Customer Service Center at (800) 659-2955 or email email@example.com
for more information on disaster assistance.
Emergency Economic Injury Grants
Emergency Economic Injury Grants as much as $10,000
will be given upfront to pending EIDL recipients within a week of a successful application regardless of the final loan decision.
- Recipients can use the advance funds to meet payroll, provide paid sick leave, pay mortgages, rent, or other obligations.
- Due to high demand, SBA has decided to scale the grants and provide $1,000 per employee up to 10 employees.
While the CARES Act states these grants must be received after 3 days of applying for an EIDL, overwhelming interest has slowed down the process.
Small Business Guidance
The SBA's Resource Partners are providing quality free mentorship, guidance, and expertise to small business owners and entrepreneurs impacted by COVID-19. If you need additional assistance, please reach out to your local Small Business Development Center
, Women's Business Center
, SCORE chapter
, or SBA District Office
State & Local Resources
Los Angeles City Small Business Emergency Microloan Program
Los Angeles Area Chamber of Commerce
- The City of Los Angeles has established a program to provide loans ranging from $5,000 to $20,000 to small business enterprises affected by COVID-19.
Los Angeles County Business and Worker Disaster Help Center
- The U.S. Chamber of Commerce Foundation is offering a new small business grant through its Save Small Business Fund.
- The fund is providing $5,000 in short-term relief to employers across the country.
- These one-time supplemental cash grants are for businesses with 3 to 20 employees that operate in an economically vulnerable community.
California Disaster Relief Loan Guarantee Program
- The Los Angeles County Board of Supervisors is creating a COVID-19 Relief Fund to bring in $28 million to assist small businesses and nonprofits across all industries facing hardship.
- Visit the Help Center's website, or call 833-238-4450, to receive guidance on loan applications, layoff aversion services, tax credits, and comprehensive support for workers.
- Staff assistance is available in multiple languages, including Spanish, Korean, Mandarin Chinese, and Armenian.
- For businesses that do not qualify for federal relief, like those owned by undocumented individuals, California has channeled $50 million into its infrastructure bank to create micro-lending opportunities.
- The Small Business Finance Center (SBFC) is partnering with Financial Development Corporations to provide loan guarantees and direct loans to small businesses that experience barriers to capital access and do not qualify for SBA loans.