The Small Business Administration (SBA) Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDLs) have gotten the most attention from businesses seeking a quick cash infusion during the COVID-19 pandemic.
But the SBA has several other loan programs that pre-date the pandemic and don’t require a disaster for eligibility. These include the following:
7(a) loans. General small-business loans of up to $5 million
504 loans. Loans of up to $5.5 million to provide financing for major fixed assets such as equipment or real estate
Microloans. Short-term loans of up to $50,000 for small businesses
The $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act appropriated $17 billion to provide a temporary payment subsidy to businesses with these non-disaster SBA loans.
On December 27, 2020, Congress appropriated an additional $3.5 billion in its second stimulus law to expand this loan subsidy program.
If you have one of these loans, you likely already benefited from this subsidy, or you will soon if your loan is on deferment.
If you don’t have such a loan, you can apply for one now and still benefit from the loan subsidy in 2021.
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