CORONAVIRUS EMERGENCY LOANS FOR BUSINESSES
on Friday, April 3, 2020
Coronavirus Aid, Relief, and Economic Security (CARES) Act
Economic Injury Disaster Loan (EIDL) Program:
- It is ONLY available through the SBA website.
- If you apply for this loan, you can request an emergency grant of up to $10,000 which the SBA must provide within three business days of the grant request. This grant will not have to be repaid even if you are not approved for the loan. If you apply for the loan before the grant is available, you will need to go back and request the grant but will not have to reapply. At this time, there is no guidance on how this is done, but we expect more information will be released.
- Terms: 3.75% interest, up to 30-year repayment, 12 months no payments.
- Credit score of applicant is the primary factor in approval.
- $10 billion is set aside for the grant program and the grants are to be given out First Come First Served.
- The SBA will determine the amount of an EIDL Loan and the loan is available to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.
- For any loan made under this program, no personal guarantee will be required on loans up to $200,000.
- It is important that this loan is applied for BEFORE the section 7(a) loan discussed below if you wish to participate in both programs.
- If you receive EIDL money and you intend to also apply for the Payroll Protection money of 7(a), please consult with your tax advisor to develop an efficient plan for the use of the loan proceeds.
Paycheck Protection Program:
The Coronavirus Aid, Relief, and Ecomonic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program (PPP), the initiative provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency.
Reliance State Bank is an SBA-approved lender.
Starting April 3, 2020, small businesses and sole proprietorships may apply.
Starting April 10, 2020, independent contractors and self-employed individuals may apply.
Click Here to download and complete the application.
- If you currently work with a Loan Officer at Reliance State Bank, please contact him or her directly once you have completed the application.
- If you are not currently working with a Loan Officer, please call the bank at 515.733.4396 in Story City or 641.923.2801 in Garner and we will connect you to one.
Is your business eligible?
You are eligible if you are:
- A small business with fewer than 500 employees
- A small business that otherwise meets the SBA's size standard
- A 501(c)(3) with fewer than 500 employees
- An individual who operates as a sole proprietor
- An individual who operates as an independent contractor
- An individual who is self-employed who regularly carries on any trade or business
- A Tribal business concern that meets the SBA size standard
- A 501 (c)(19) Veterans Organization that meets the SBA size standard
In addition, some special rules may make you eligible:
- If you are in the accommodation and food services sector (NAICS 72), the 500-employee rule is applied on a per physical location basis.
- If you are operating as a franchise or receive financial assistance from an approved Small Business Investment Company the normal affiliation rules do not apply.
Additional Resource Available:
Learn more about Federal resources below:
SBA Disaster Loans