Guide

Small Business Financing for COVID-19

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Business Relief

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COVID-19 Relief Financing Options

SBA 7(a) and 7(b) Loan Programs

COVID-19 made a major impact on businesses nationwide. The SBA has two loan programs, the 7(a) Paycheck Protection Program and 7(b) Economic Injury Disaster Loan (EIDL), available to eligible businesses affected by COVID-19.

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COVID-19 Business Resource Center

As the pandemic continues, it’s hard to follow changing state and federal regulations and keep your business afloat. We’re creating new resources to help you keep up-to-date and keep your business going.

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Other Sources of Financing

With the economic impact the country is facing, some businesses and organizations are pitching in to help small business owners through this pandemic. Find options for relief financing for COVID-19 available to qualifying companies.

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Loan Overview:

The 7(b) loans provide up to $2 million in assistance with an interest rate of 3.75% for-profit companies and an interest rate of 2.75% for non-profits. The loan terms range up to 30 years, and there are no upfront fees or early payment penalties.

Loan information:

  • Payments start 12 months after the date of the contract
  • Funds can be used to business expenses such as pay sick leave for employees who are unable to work due to a direct effect of COVID-19, payroll, materials, rent or mortgage payments, repaying outstanding obligations

Eligibility requirements:

Loans for any business that is affected by COVID-19, has less than 500 employees and was in operation before February 1, 2020, is eligible to apply.

Those interested in applying, must apply before December 31, 2020

Emergency Advance up to $10,000

Advance information:

  • There is no requirement to repay the advance even if your business is denied the 7(b) loan
  • Funds can be used to pay business expenses such as pay sick leave for employees who are unable to work due to a direct effect of COVID-19, payroll, materials, rent or mortgage payments, repaying outstanding obligations

Eligibility requirements:

An eligible small business must apply for the 7(b) loan in order to request the Emergency Advance of up to $10,000

Those interested in applying, must apply before December 31, 2020

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Loan Overview:

The 7(b) loans provide up to $2 million in assistance with an interest rate of 3.75% for-profit companies and an interest rate of 2.75% for non-profits. The loan terms range up to 30 years, and there are no upfront fees or early payment penalties.

Loan information:

  • Payments start 12 months after the date of the contract
  • Funds can be used to business expenses such as pay sick leave for employees who are unable to work due to a direct effect of COVID-19, payroll, materials, rent or mortgage payments, repaying outstanding obligations

Eligibility requirements:

Loans for any business that is affected by COVID-19, has less than 500 employees and was in operation before February 1, 2020, is eligible to apply.

Those interested in applying, must apply before December 31, 2020

Emergency Advance up to $10,000

Advance information:

  • There is no requirement to repay the advance even if your business is denied the 7(b) loan
  • Funds can be used to pay business expenses such as pay sick leave for employees who are unable to work due to a direct effect of COVID-19, payroll, materials, rent or mortgage payments, repaying outstanding obligations

Eligibility requirements:

An eligible small business must apply for the 7(b) loan in order to request the Emergency Advance of up to $10,000

Those interested in applying, must apply before December 31, 2020

Apply Now

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Information

Relief Loans and Grants by State

WaFd Bank

The WaFd Bank is offering a revolving five year line of credit with zero percent interest for the first 90 days. Approval is subject to annual revenue and the maximum available is $200,000.

Requirements:

  • Businesses who have a 10% or greater drop in revenue

To apply visit, https://www.wafdbank.com/business-banking/coronavirus-business-line-of-credit

SBA Economic Injury Disaster Loan (EIDL) and Physical Disaster Loan

Federal loan available to Arizona residents. More details on the loan provided at the top of the page. For more info please visit

https://www.sba.gov/funding-programs/disaster-assistance

Arkansas Quick Action Loan Program

The Quick Allocation Closing Fund allocation will prioritize companies that are in the supply chain of essential goods and services, including healthcare, food manufacturers, and logistics. The allocation from the Attorney General will support small businesses. The program includes both loan guaranties and direct lending to businesses.

Loan information:

  • AEDC will guaranty up to 80% of the principal balance of a loan issued by a lender participating in the program
  • The amount of AEDC’s guaranty is capped at $250,000
  • Loans are at zero interest and may be amortized for up to two years
  • Loans issued directly to borrower by AEDC
  • Borrower must demonstrate that it has been adversely impacted by the health emergency
  • Proceeds may be used for working capital, inventory, payroll, and other uses that facilitate the continuation of business operations
  • Borrower will be subject to the lender’s customary underwriting and collateral requirements
  • Loan amount may be amortized for up to 5 years
  • Initial payments may be deferred for up to 90 days at the option of borrower and lender
  • Payments may be deferred for up to 6 months following closing on the loan
  • Borrower and participating lender must sign loan guaranty agreements with AEDC, which will include job retention requirements for the borrower.

Requirements:

  • Borrower must demonstrate to AEDC that it has no other satisfactory financing options available to it through commercial lending or through other government programs such as the SBA Economic Injury Disaster Loan Program
  • Borrower must demonstrate that it has been adversely impacted by the health emergency
  • Borrower must satisfy AEDC’s financial underwriting requirements. • Borrower must agree to job retention requirements.

There does not appear to be an online application. Applicants should contact via email at COVID19.businessinfo@arkansasedc.com or by phone at 501-682-1121 or toll-free: 1-800-ARKANSAS

SBA Economic Injury Disaster Loan (EIDL) and Physical Disaster Loan

Only federal loans available to Arkansas residents. More details on the loan provided at the top of the page. For more info please visit https://www.sba.gov/funding-programs/disaster-assistance

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