In need of special funding for your commercial business due to Covid-19? Contact Omega Financial Services for your Disaster Relief Funding.
SBE EIDL Program vs. CARES Act SBA 7(a) Relief Loan
We'eve received countless calls and emails from confused business owners asking us to clarify certain aspects of the CARES Act SBA 7(a) relief funding and how it compares to the SBA Economic Injury Disaster Loan (EIDL) that is already available.
Many of the questions we've received have come from our business clients & referral partners, wondering if we will be able to assist them & their clients in obtaining CARES ACt SBA 7(a) relief funding through Omega Financial Services. The answer is YES
The information out there is certainly confusing, so I wanted to provide some clarity. It is important to note that this portion of the CARES Act is not the same as the 7(b) SBA economic injury disaster loan (EIDL) loan program that is already available on the SBA website, nor may it be used for the same purpose. Interested borrowers should evaluate both programs and choose accordingly.
Under the current draft of the Cares Act (7a), the SBA is authorized to guarantee up to $349 billion in 7(a) loans to businesses with not more than 500 employees or the applicable size standard established by the SBA for the industry in which the business operates, if greater.
Loan Amount and Purpose. Eligible borrowers will be allowed to borrow up to the maximum of (i) $2 million or (ii) the business's average total monthly payroll costs during the one-year period prior to the loan being made multiplied by 2.5. Payroll costs include salaries, wages, tips, payments, for sick leave, insurance premiums and state and local taxes assessed on the compensation of employees, up to 2 months of your mortgage payment.
Collateral and personal guarantee requirements would be waived during the covered period.
Waives affiliation rules for businesses of certain industries
(Omega is not an SBA lender but OMega Financial Services prepares the package for the lenders)
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