We will submit your application to our network of SBA lenders.
As part of the CARES Act, now signed into law, small businesses and some non-profits will have access to SBA loans with higher loan amounts, no restrictions on use (except if seeking 100% forgiveness), deferred payments for 6 months, all fees being waived and the potential for forgiveness of up to the full principal amount through the 7(a) CARES Paycheck Protection Program
These loans provide an option for 100% principal forgiveness when specific requirements are met
All payments will be deferred for 6 months. However, interest will continue to accrue over this period.
Loans can be used to cover payroll cost, rent payments or mortgage interest, and utility payments. Rent agreements, mortgage obligations, and utility services start dates must have incurred before February 15th, 2020 to qualify. For more information on payroll costs, see below under “What makes up payroll costs?” If the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.
The SBA has increased maximum loan amounts from the standard $5 Million to $10 Million.
The new loan does not require a personal guarantee or collateral and has no minimum FICO requirements.
Your business must be based in the U.S.
Your business must have been in operation on February 15, 2020.
Your business must have the greater of 500 or less employees, or the applicable NAICS size limitations
You must be able to certify that your business suffered economic hardship due to COVID-19.
With this program, rates are set at 1% and terms will go as far out as 2 years for any balance not forgiven.
If all employees are kept on payroll, businesses will be able to apply for forgiveness on any amount spent during the 8 week period post loan closing to cover payroll cost, rent payments or mortgage interest, and utility payments. Any amount spent after the 8 week period will not qualify for forgiveness. It is also anticipated that not more than 25% of the forgiven amount may be used for non-payroll costs.
A major reason for the proposed Paycheck Protection Program is to help as many business as possible keep as many individuals employed as possible, so qualifying for principal forgiveness is heavily based on staff and pay rate retention, though there are other conditions that also apply:
If you don’t meet the full employment requirements, you are still eligible for partial loan forgiveness. However, the amount forgiven will be proportionately reduced based on the number of employees you were unable to retain or rehire.
Approval amounts will be based on 2.5X your prior average monthly payroll costs over the last year, up to $10 Million.
Payroll costs include:
You can combine a 7(a) CARES Relief Loan with an already existing SBA 7(a) Standard or Express Loan, if it was obtained before February 15th, 2020. You can also combine a 7(a) CARES Relief Loan with a 7(b) EIDL Loan
This program will end when it reaches its cap of $349 billion in issued loans, or on June 30th, 2020 if the cap is not reached by then.
Payroll costs are comprised of:
Yes. As part of your application, you will need to certify in good faith that:
We help small business owners, like you, find funding fast.
The SBA requires
Our team will help you organize everything needed to apply for an SBA loan.
We will submit your application to our network of SBA lenders.
We have your back. Our company is built around helping small business owners get the best lending options for their situations.
We walk you through every step of the process so your path to funding is quick and easy.
Learn more about Gold Card Capital today. Please call for any free analysis/consultation on 1-855-479-9380 or send an email to m_adelberg@goldcardcapital.com.