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COVID-19: SBA Loan Summary

Posted on March 27, 2020

7a Loan Program

  • These loans are working capital loans which do not require any equity injection (100% loans). Can be utilized for salaries, sick leave, insurance, mortgage and rent payments.
  • Maximum amount of $10 million per borrower.
  • Little limitation on type of Borrower – Can be corporations, partnerships, sole proprietors, LLCs, independent contractors, and nonprofits.
  • 500 employee maximum.
  • Multiple physical locations for a business now treated separately.
  • Typical SBA Affiliation Rules are waived.
  • Eligibility not tied to ability to repay, but instead solely to whether you had employees or independent contractors.
  • Collateral and Personal Guarantees waived.
  • Maximum interest rate of 4%.
  • No Pre-Payment Penalties.
  • Deferment of Loan Payments for a minimum of 6 months / maximum of 12 months.

Loan Forgiveness:

  • Amount spent by Borrower for 2 months after loan origination spent on payroll, interest on mortgages, payment of rent, and payment on utilities will be forgiven.
  • Forgiveness of indebtedness not to be considered taxable income to Borrower

Economic Injury Disaster Loan Grants

  • These loans are for businesses located within an area where a disaster has been declared.
  • Don’t have to be in business for 1 year … that requirement is waived.
  • Personal Guarantees on Loans under $200k are waived.
  • Any applicant can get an advance of $10k within 3 days of application. If denied for loan, no requirement to repay.
  • Can be used for essentially any purpose, including, but not limited to, sick leave, payroll, increased material costs, rent/mortgage, and other obligations.

Existing SBA Borrowers

  • Can receive a 6 month deferment of payments.

PIDA Loans

  • Maximum of $100,000 per borrower.
  • Must have less than 100 employees.

Erie County Redevelopment Authority

  • Maximum of $50,000 per borrower, proceeds available within 7 days.
  • 0% interest.
  • Deferral of payments for 90 days.

Bridgeway Capital / ECGRA Loans for Erie County


  • Nonprofits located in Erie County
  • Small businesses under 25 employees located in Erie county that are any of the following:
  • Minority-, woman-, immigrant- or veteran-owned businesses, or
  • Businesses or nonprofits that serve economically distressed neighborhoods in Erie County


  • Flexible repayment terms with no payment required for 3 months
  • Low-interest rates at 4% for small businesses
  • Low-interest rates at 3% for nonprofits
  • Loans from $5,000 up to $50,000

Please contact your Knox Law attorney to learn more or to discuss how your business could benefit from one of these programs. If you are not currently a client, please call 814-459-2800 to leave a message and someone will get back to you within 1-2 business days.

More resources and information regarding COVID-19

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