The CBIZ COVID-19 Loan and Capital Assistance team is here to
support you, as you navigate the challenges to your business posed by the
Several funds have been made available recently to help companies
navigate their financial hardships and maintain their operations. Whether you
are seeking assistance with emergency relief under the CARES Act, applying for
SBA loans or the Paycheck Protection Program, the Main Street Lending Program,
debt restructuring assistance, guidance on loan modifications, or looking for
other capital assistance, we are here for you.
Steps to Take:
- Contact Us for assistance navigating and applying for loans and other capital assistance. We will discuss your options and identify your best path forward.
- If you are a current CBIZ Human Capital Management client looking for payroll information or assistance, click here.
Businesses with up to 500 employees that meet the size standard for their industry as outlined by the Small Business Administration’s (SBA) existing regulations, not-for-profit organizations, businesses in the accommodation and food services sector with more than one physical location but no more than 500 employees at each location, and eligible independent contractors, and sole proprietors can apply for:
- Economic Injury Disaster Loans – Grants of up to $10,000 to provide funds for operating costs and term loans available at 3.75% for businesses and 2.75% for non-profits payable up to 30 years.
- Paycheck Protection Program – Expansion of SBA loan
program to cover the costs associated with payroll and other items, may be
forgivable if certain criteria are met.
Limited to lesser of $10 million or 2.5X monthly payroll costs.
NOTE: As of April 15, the SBA was out of funding for the PPP and EIDL programs. For more on this, please see our article here.
Other SBA Loans
- SBA 7a, SBA Microloans, and Express Loans - Maximum loan amount of $10 million are available to eligible businesses based upon formulas using payroll costs and other factors. Personal guarantees are waived during the covered period, and loan forgiveness is possible if certain criteria is met.
- SBA 504 Loans – Maximum loan amounts of $20+ million are available to businesses for hard assets such as equipment and improved real estate. Amortization terms of 10 years for equipment and between 20 to 25 years for real estate.
Main Street Lending Program
Established by the Federal Reserve, this program helps organizations with 10,000 workers or revenues of less than $2.5 billion access funding. The four-year maturity loans have SOFR interest rates plus 250-400 basis points and an origination fee of 100 basis points. Principal and interest payments will be deferred for one year, and there is no prepayment penalty.
- Main Street New Loan Facility – up to $25 million or 4x EBITDA
- Main Street Expanded Loan Facility – up to $150 million, 30% of undrawn debt, or 6x EBITDA
Read more about the program here.
U.S. Treasury Exchange Stabilization Fund
Geared towards larger companies, the CARES Act provides $500 billion to the Treasury’s Exchange Stabilization Fund (ESF) to provide loans, loan guarantees and other investments to eligible businesses, states and municipalities for losses incurred as a result of coronavirus. Recipients must be domiciled in the U.S., and meet certain guidelines, among them demonstration of need, and a commitment to maintain employment levels (to the extent possible) at March 24 until September 30, 2020.
Interagency guidance has been issued to financial institutions working with borrowers impacted by the COVID-19 crisis. The guidance encourages financial institutions to work prudently with borrowers who cannot make payments and suggests short-term modifications for deferrals of payments, interest and fees for up to six months.
Alternative Financing Options
For those businesses with lendable assets, there may be alternate types of financing available.
For more information on COVID-19 Resources, please click here.