SBA Disaster Recovery Loans and the CARES Act

(Coronavirus Aid, Relief, and Economic Security Act)

[update as of 6/17/2020]

Paycheck Protection Program Loan Forgiveness Application [Revised 6-16-2020]

Now that the chaos of the initial funding has subsided, most businesses were waiting on the final interim rule regarding the ‘forgiveness’ portion of the program.  This process was once again streamlined as of  6/16/2020.  There are two different applications depending on your business structure and whether or not you have employees.  You can find more info and updates here on the SBA website, or download the SBA Forgiveness application to see what kind of info you will need.  Feel free to contact us for any alternative business funding or PPP application information.  Either way, we wish everyone safety and returning prosperity during these uncertain times.  Here is a link to the Loan Forgiveness EZ form.


Paycheck Protection Program (PPP)

The SBA’s Paycheck Protection Program was the lifeline most businesses were counting on. In fact, the SBA approved loans that exhausted all the funding available for the initial round within days.  Not hard to believe since it was available for ALL small businesses in the entire USA.  However, since then, Congress approved additional funds for this program and there is still approximately $130B still available through various banks and lenders.  We have funded over 800k in PPP loans through our office can still review your info to see if you are eligible through our lender.  As we are not a direct SBA lender we have limited outlets for our applications, but most direct SBA lenders are still accepting applications.

How to apply:

           SBA does NOT process the Payment Protection Program applications directly through their website.    You may contact us here through Stellar Business Funding as we still have one or two SBA lenders actively processing the PPP loans.


Economic Injury Disaster Loan (EIDL)

  • The SBA economic injury disaster loans (EIDL) can provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within 3 days of applying for an SBA Economic Injury Disaster Loan (EIDL).  To access the advance, you first apply for an EIDL and then request the advance.  The advance dis intended to retain employees and keep them on payroll, pay for sick leave, and pay for utilities, rent, and mortgage payments.  How to Apply for EIDL
    • EIDL requires you to apply online directly through the SBA site:  Click here to apply on the SBA site
    • When you apply, you can request an emergency grant of $10,000.
    • The SBA will provide the grant within 3 days of receiving your application.
    • You will not have to repay the grant, even if your application for a loan is denied.
    • If you apply for an EIDL and the grant, you can still apply for a Paycheck Protection loan.  However, the amount forgiven under a Paycheck Protection loan will be decreased by the $10,000 grant.


    ** The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury.

SBA Loan Programs – The Small Business Administration seeks to solve small business cash flow problems by providing operating working capital small business loans to merchants of small and mid-sized businesses.

They also want to help start-ups, and promote commerce and enterprise in particular areas, occupations, industries. The SBA is a government agency and although we can help you get one of their loans, we are not affiliated or endorsed by them.

Initial Requirements

  • Business owners must be American citizens.
  • No previous or outstanding defaults on government-backed loans.
  • No tax liens or judgments filed any business, principal, or guarantor.
  • No delinquent taxes owed to the IRS.
  • No open litigation that could cause financial penalties.
  • You must have a detailed business plan.
  • Full documentation required with profit loss, and balance sheet.
  • 10% down payment or capital injection for purchases.

The main advantage of the SBA Loan Program is its low-interest rates. There are 2 SBA Loan Programs, the no-collateral Express Loan, and the collateralized 7(a) Loan.

SBA Express Loans

SBA Express Loans have terms of 2 – 10 years with variable interest rates of Prime + 4.75%. The application process takes 2 – 4 weeks and you will be required to meet several qualifications. No collateral is required.

SBA Express Loan Requirements

  • A 680 FICO credit score.
  • Be a current or past US military veteran or the spouse of one.
  • Located in an underutilized business zone.
  • Sell items that can be exported.
  • Sell items on your website that can be shipped to Canada, Mexico, or any other country.
  • Go to The Wall Street Journal for a link that shows the latest Prime Rate.

SBA 7(a) Loans

SBA 7(a) Loans have terms of up to 25 years with variable interest rates of Prime Rate + 2-3%. Because you will need to provide full personal and business documentation, and you’ll also need to fully collateralize with real estate and/or assets equal to your loan amount, the application process for this loan takes 2 – 6 months.

SBA 7(a) Loan requirements

  • You must be US citizens or registered aliens.
  • It must be a for-profit business.
  • The business mustn’t exceed SBA size standards.
  • Your business must not engage in lending, investing, gambling, or property speculation.
  • You must not be on probation or parole.

Although you don’t absolutely have to have real estate collateral, it is extremely difficult to get one of these loans without it.

And, there is no minimum FICO credit score requirement for 7(a) Loans, but know that you must have very good credit to qualify.

If you think you meet the requirements for either of these SBA Loans, Contact Us to apply …… we’d be happy to help you!