SBA Today Launched the $349 Billion Emergency Paycheck Protection Program (PPP)

New Hampshire District Office - April 3, 2020

u s small business administration

Coronavirus (COVID-19): Small Business Guidance & Loan Resources

SBA is offering economic relief options to small businesses. 

SBA is offering economic relief options to small businesses. 

Find the details here on the agency’s Economic Injury Disaster Loan Program, the new Paycheck Protection Program (“PPP”) which authorizes forgivable loans to small businesses to pay their employees, and the debt relief being offered to existing SBA borrowers.


Press Release

WASHINGTON – The U.S. Small Business Administration Administrator Jovita Carranza today launched the Paycheck Protection Program, a $349 billion emergency loan program created last week with the President’s signing of the Coronavirus Aid, Relief, and Economic Security Act (CARES). The program provides forgivable loans up to $10 million to small businesses left financially distressed by the Coronavirus (COVID-19) pandemic. The loans, which will be administered at the local level by a national network of banks and credit unions, are designed to maintain the viability of millions of small businesses struggling to meet payroll and day-to-day operating expenses.

“These loans will bring immediate economic relief and eight weeks of financial certainty to millions of small businesses and their employees,” SBA Administrator Carranza said. “We urge every struggling small business to take advantage of this unprecedented federal resource – their viability is critically important to their employees, their community, and the country.”

The loans, which are 100% backed by SBA, are being provided to small businesses without collateral requirements, personal guarantees, SBA fees, or credit elsewhere tests. Those eligible for the program include small businesses, certain non-profits, veterans’ organizations, self-employed individuals, independent contractors, and other businesses meeting size standards based on their North American Industry Classification System code.

The Paycheck Protection Program’s maximum loan amount is $10 million with a fixed 1% interest rate and maturity of two years.The loans are available to cover up to eight weeks of average monthly payroll (based on 2019 figures) plus 25% and payments are deferred for six months (interest does accrue). The SBA will forgive the portion of loan proceeds used for payroll costs and other designated operating expenses for up to eight weeks, provided at least 75% of loan proceeds are used for payroll costs. Eligible expenses for the eight-week forgiveness include:

  • Payroll costs (excluding the prorated portion of any compensation above $100,000 per year for any person. Payroll costs include salary, commissions, tips; certain employee benefits including sick leave and health care premiums, and state and local taxes;
    • Mortgage interest (not prepayment or principal payments) and rent payments on mortgages and leases in existence after February 15, 2020;
    • Utilities such as electricity, gas, water, transportation, phone and internet access for services that began before February 15, 2020; and
    • Additional wages paid to tipped employees.

NH Participating Lenders


PPP Loan Application


EIDL Application

Applying for SBA Disaster Loans (EIDL) Information


Q & A's

  1. If I am applying for / received an Economic Injury Disaster Loan, is my small business eligible to participate in the Paycheck Protection Program?

Borrowers can apply for both an SBA Economic Injury Disaster Loan and the Paycheck Protection Program loan. However, the Paycheck Protection Program loan funds and the Economic Injury Disaster Loan funds cannot be used for the same purpose. The Paycheck Protection Program loan must be used for payroll (minimum of 75% of the funds received) for it to be eligible for a forgivable loan and the remaining is used for different purposes. Borrowers who accept both loan funds should document the uses of the funds appropriately.

      2. Received EIDL – Apply for PPP:

Yes, you are still eligible to apply for the Paycheck Protection Program even if you applied for or received an SBA Economic Injury Disaster Loan. If your Economic Injury Disaster Loan was not used for payroll costs, it does not affect your eligibility for a Paycheck Protection Program loan.  If your Economic Injury Disaster Loan was used for payroll costs, your Paycheck Protection Program loan must be used to refinance your Economic Injury Disaster Loan. The Paycheck Protection Program’s maximum loan amount is $10 million with a fixed 1% interest rate and maturity of two years. Economic Injury Disaster Loan assistance provides up to $2 million loan per business and are long-term, low-interest rate at 3.75% for businesses and 2.75% for non-profits and a maturity of up to 30 years Any advance up to $10,000 on the Economic Injury Disaster Loan will be deducted from the loan forgiveness amount of the Paycheck Protection Program loan.

For example, a borrower may obtain a loan from the Paycheck Protection Program and use those funds to pay for 8 weeks of payroll or employee retention. They may wish to then dedicate their entire EIDL funds towards working capital, notes payable and accounts payable that do not duplicate the funds provided through the Paycheck Protection Program. If the EIDL loan was used for payroll expenses, the borrower must refinance the EIDL loan with the PPP loan which carries a lower interest rate as well as a shorter maturity period.

  1. Do I have to choose one or the other?

Select the loan program that best meets your individual business needs; however, you are not permitted to hold funds from both programs for the same purpose. The PPP loan has different terms from the EIDL loan. The Paycheck Protection Program’s maximum loan amount is $10 million with a fixed 1% interest rate and maturity of two years. Economic Injury Disaster Loan assistance provides up to $2 million loan per business and are long-term, low-interest rate at 3.75% for businesses and 2.75% for non-profits and a maturity of up to 30 years The application period for PPP loans runs through June 30, 2020, but the EIDL application period runs through December 2020. If you have working capital need beyond what is provided by PPP, you can apply for additional assistance through the EIDL program.

If you are applying for both, you can accept PPP first – then decide whether to close on your EIDL approved loan. An EIDL approved loan may be closed within 60 days, and the borrower can choose whether to close on the loan. The EIDL application period runs through Dec. 2020.


Skype Meeting

We will continue to host webinar briefings two times each day Monday-Friday at 9AM and 2PM and Saturdays 10AM and 2PM on relief programs into the foreseeable future.  Join by phone:  Toll number:+1 (202) 765-1264, Conference ID: 522409519 or Join Skype Meeting.


NH SBA Customer Service Email

We are experiencing an extremely high volume of inquiries and need your help.   Please direct all questions to Newhampshire_do@sba.gov

We will do our best to get answers back to you in a timely manner.

Stay safe and we wish you and your businesses well!

The NH SBA Team


Resource Partners Assistance

Free assistance with reconstructing financial records, preparing financial statements and submitting the loan application is available from any of SBA’s partners:

Small Business Development Centers -NH SBDC
SCORE
Center for Women and Enterprise -CWE
Veteran’s Business Outreach Centers
or for more information 


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