Coronavirus: Small Business Updates and Resources
Updated: March 24, 2021, 3:04 PM
In light of the continuing concerns surrounding COVID-19 (coronavirus), the Florida SBDC at UCF has suspended all in-person activity at all of our main offices, as directed by the University of Central Florida and the Florida SBDC Network. We will continue to provide consultation services via telephone and video chat.
On Sunday, December 27, 2020, President Trump signed the “Consolidated Appropriations Act of 2021,” which provides additional assistance to small businesses, nonprofits, and venues struggling from the impacts of the COVID-19 pandemic.
The bill provides funding for a second round of Paycheck Protection Program (PPP) forgivable loans, Economic Injury Disaster Loan (EIDL) grants, a special grant program for shuttered venues, and enhancements to other SBA lending programs.
Paycheck Protection Program (PPP) Loan
Short-term, potentially forgivable loans to eligible small businesses, independent contractors or other self-employed individuals, nonprofits, housing cooperatives, news organizations, and other eligible entities that retain employees, maintain payroll, and use for other allowable operating expenses.
PPP loans are administered and approved through SBA-certified lending institutions.
Congress has made funding available to eligible businesses that have previously received a PPP loan.
Amount: Lesser of 2.5x average monthly payroll costs or $2 million
Interest and Terms: 1% for a term of five years for any amount not forgiven
Personal Guarantee: None
Deadline: March 31, 2021
Borrowers are eligible for a second-draw loan of up to $2 million if they have:
- 300 or fewer employees
- Used or will use the full amount of their first PPP loan on or before the expected date for the second PPP loan to be disbursed to the borrower. The IFR also clarifies that the borrower must have spent the full amount of the first PPP loan on eligible expenses.
- Experienced a revenue reduction of 25% or more in all or part of 2020 compared with all or part of 2019.
Limited to the amount spent on payroll costs and allowable operating expenses during the 24-week period beginning on the date of the origination of the loan.
At a minimum, 60% must be expended on payroll costs to be forgiven.
Second draw borrowers with a principal amount of $150,000 or less are required to provide documentation of revenue reduction if such documentation was not provided at the time of the loan application as specified in subsection (g)(2)(iv) and (v) of the SBA’s IFR.
Proceeds may be used to pay payroll costs, mortgage interest, rent, utilities, interest on pre-existing loans, costs related to the continuation of benefits, refinancing an EIDL loan made between January 31, 2020 and April 3, 2020; covered operations expenditures, covered supplier costs, and covered worker protection expenditures.
How to Apply: Contact your local bank, credit union, or other SBA-certified lender to apply or for more information.
SBA Economic Injury Disaster Loan (EIDL)
In response to COVID-19, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for the COVID-19 Economic Injury Disaster Loan (EIDL).
To meet financial obligations and operating expenses that could have been met had the disaster not occurred.
For loans approved starting the week of April 6, 2021: 24-months of economic injury with a maximum loan amount of $500,000.
For loans approved prior to the week of April 6, 2021, see loan increases.
- 3.75% for businesses (fixed)
- 2.75% for nonprofits (fixed)
- 30 years
- No pre-payment penalty or fees
Use of Proceeds
Working capital and normal operating expenses
Example: continuation of health care benefits, rent, utilities, fixed debt payments.
- Required for loans over $25,000
- SBA uses a general security agreement (UCC) designating business assets as collateral, such as machinery and equipment, furniture and fixtures, etc.
- NO – EIDL Loan
- YES – EIDL Advance*
*Advance funds have been fully allocated and are not currently available
Borrower may make payments if they choose to do so.
Set up online payments through Pay.gov OR mail payments to:
U.S. Small Business Administration
721 19th Street
Denver, CO 80202
Be sure to include EIDL loan number on mailed-in checks.
Small business owners and qualified agricultural businesses in all U.S. states and territories are currently eligible to apply for a low-interest loan due to COVID-19.
Agricultural businesses with 500 or fewer employees are now eligible as a result of new authority granted by Congress in response to the pandemic.
Agricultural businesses include those businesses engaged in the production of food and fiber, ranching, raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
- Frequently Asked Questions about the COVID-19 EIDL
- Cross-program eligibility on SBA COVID-19 relief options
- Frequently Asked Questions for Faith-Based Organizations Participating in the PPP and EIDL
- Frequently Asked Questions Regarding Agricultural and Farm Loan Collateral Security and the SBA EIDL Program
Some loans approved prior to the week of April 6, 2021 will be eligible for an increase based on new loan maximum amounts announced March 24, 2021. Businesses that received a loan subject to current loan limit do not need to submit a request for an increase at this time. SBA will reach out directly via email closer to the April 6, 2021 implementation date to provide more details about how businesses can request an increase.
If an applicant accepted a loan for less than the full amount originally offered, the application will have up to two years after the date of the loan promissory note to request to request additional funds. Applicants may continue to request additional funds even after the application deadline of December 31, 2021.
Targeted EIDL Advance
The COVID-19 Targeted EIDL Advance was signed into law on December 27, 2020, as part of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act. The Targeted EIDL Advance provides businesses in low-income communities with additional funds to ensure small business continuity, adaptation, and resiliency.
Advance funds of up to $10,000 will be available to applicants in low-income communities who previously received an EIDL Advance for less than $10,000, or those who applied but received no funds due to lack of available program funding.
Applicants do not need to take any action.
SBA is reaching out to those who qualify.
SBA first reached out to EIDL applicants who already received a partial EIDL Advance (between $1,000 – $9,000). Applicants are being contacted directly by SBA via email with instructions to determine eligibility and submit documentation.
All communication from SBA will be sent from an official government email account ending with @sba.gov. Please do not send sensitive information via email to any address that does not end with @sba.gov.
Applicants may qualify if they:
- Are in a low-income community. To help applicants determine if they are in a low-income community as defined in section 45D(e) of the Internal Revenue Code, a mapping tool is available at https://sbaeidl.policymap.com/app. The business address must be in a low-income community to qualify so SBA encourages potential applicants to check the map to see if they meet the low-income community eligibility requirement before they apply; and
- Can demonstrate more than 30% reduction in revenue during an eight-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30% reduction.
Next, SBA is reaching out to those who applied for EIDL assistance on or before December 27, 2020, but did not receive an EIDL Advance due to lack of program funding. These applicants will receive an email from SBA with instructions to determine eligibility and submit documentation. Applicants may qualify for a Targeted EIDL Advance if they meet the low-income location and reduction-in-revenue criteria, and:
- Have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. Agricultural enterprises are not eligible.
All applicants may be asked to provide an IRS Form 4506-T to allow SBA to request tax return information on the applicant’s behalf.
Please do not submit duplicate COVID-19 EIDL applications. Only prior applicants will be considered for the Targeted EIDL Advance.
SBA will reach out if you qualify.
Main Street Lending Program
The Federal Reserve has announced that it is establishing a Main Street Lending Program to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF).
Please read the Frequently Asked Questions (FAQs) for more information. Also term sheets for each facility providing information regarding eligibility and conditions can be found below.
Main Street New Loan Facility (MSNLF) | Term Sheet (April 30, 2020) (PDF)
Main Street Priority Loan Facility (MSPLF) | Term Sheet (April 30, 2020) (PDF)
Main Street Expanded Loan Facility (MSELF) | Term Sheet (April 30, 2020) (PDF)
SBA Express Bridge Loans
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
- Up to $25,000
- Fast turnaround
- Will be repaid in full or in part by proceeds from the EIDL loan
SBA Debt Relief
The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis.
As part of SBA’s debt relief efforts,
- The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
- The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
Additional Debt Relief
For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.
What does an “automatic deferral” mean to borrowers?
- Interest will continue to accrue on the loan.
- 1201 monthly payment notices will continue to be mailed out which will reflect the loan is deferred and no payment is due.
- The deferment will NOT cancel any established Preauthorized Debit (PAD) or recurring payments on your loan. Borrowers that have established a PAD through Pay.Gov or an OnLine Bill Pay Service are responsible for canceling these recurring payments. Borrowers that had SBA establish a PAD through Pay.gov will have to contact their SBA servicing office to cancel the PAD.
- Borrowers preferring to continue making regular payments during the deferment period may continue remitting payments during the deferment period. SBA will apply those payments normally as if there was no deferment.
- After this automatic deferment period, borrowers will be required to resume making regular principal and interest payments. Borrowers that cancelled recurring payments will need to reestablish the recurring payment.
If you have questions about your current loan and whether or not your loan is automatically deferred, please contact your Loan Servicing Office directly using the following information:
- Birmingham Disaster Loan Servicing Center:
- Phone: 800-736-6048
- Email: BirminghamDLSC@sba.gov
- El Paso Disaster Loan Servicing Center:
- Phone: 800-487-6019
- Email: ElPasoDLSC@sba.gov
Employee Retention Tax Credit (ERTC)
This tax credit provides direct financial support to businesses of all sizes that retain and pay their workers, either in active or furloughed status, rather than lay them off. Please note: employers who receive a PPP loan are not eligible for a tax credit. For more information, visit https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act
Rebuild Florida Business Loan Fund
The Rebuild Florida Business Loan Fund provides financing to assist businesses with resiliency efforts. The funds will address the current gap in available, affordable capital for businesses that can be used for inventory purchases, construction, working capital, equipment financing and more. For more information, visit http://floridajobs.org/rebuildflorida/businessrecovery.
Black Business Loan Program
The Black Business Loan program (BBLP) offers alternative lending solutions to Florida-based black owned small businesses by providing short-term loans and technical assistance. For more information, visit https://famufcu.com/black-business-loans/ or https://miamibaysidefoundation.org/loans/black-business-loan-program/
Microfinance Guarantee Program
The Microfinance Guarantee Program is available to stimulate access to credit for entrepreneurs and small businesses in Florida by providing targeted guarantees to loans made to such entrepreneurs and small businesses. Funds appropriated to the program must be reinvested and maintained as a long-term and stable source of funding for the program. For more information, visit https://www.enterpriseflorida.com/small-business/microfinance-guarantee-program/
BBIF Florida is a nonprofit community development financial institution. BBIF is a mission driven organization which helps Florida’s Black, minority and underserved small businesses thrive by providing loan capital alongside business development training.
For more information visit: https://bbifflorida.com/
Accion is a global nonprofit organization committed to creating a financially inclusive world, with a pioneering legacy in microfinance and fintech impact investing.
For more information visit: https://us.accion.org/small-business-loans/
Florida SBDC at UCF Consultation Services
All consulting appointments will be conducted either via phone call or video chat until further notice. Your consultant will discuss with you the best method of communication.
Florida Department of Health Covid-19 Website. Information and guidance regarding COVID-19 in Florida.
For questions related to COVID-19 in Florida, individuals and business can contact the Florida Deparment of Health dedicated COVID-19 Call Center by calling (866) 779-6121. The Call Center is available 24 hours a day. Inquiries may also be emailed to COVIDfirstname.lastname@example.org.
FloridaDisaster.Biz Website: Business Damage Assessment
If your employment has been negatively impacted because of efforts to stop the spread of COVID-19, you may be eligible to receive Reemployment Assistance. For more information go to Reemployment Assistance Service Center.
These resources can help small businesses develop a plan to protect their employees, lessen the financial impact of disasters, and re-open for business quickly to support the economic recovery of the community.