Loans & Grants for Businesses

U.S. Small Business Administration

SBA Economic Injury Disaster Loan (EIDL)

The EIDL program offers low interest federal disaster loans for working capital. Specifically, EIDL Advance provides up to $10,000 ($1,000 per employee) as an emergency grant that does not have to be repaid. 

Funding is now available for additional targeted EIDL grants and extends the covered period for Emergency EIDL grants through December 31, 2021.  Also, PPP borrowers are no longer required to deduct the amount of their EIDL advance from their PPP forgiveness amount. Stay tuned for more information as it becomes available.

Paycheck Protection Program (PPP) Extended to March 31, 2021

Businesses may apply for a new initial PPP Loan or take a PPP “Second Draw” (up to $2 million) until March 31, 2021.

1.  New PPP “Second Draw” Option: To receive a PPP "Second Draw" loan, eligible entities (including businesses, nonprofits, self-employed individuals, and independent contractors, among others) must employ fewer than 300 employees, have used or will use the full amount of their first PPP loan, and demonstrate at least a 25% reduction in gross receipts in any quarter of 2020 compared to the same quarter in 2019.

Generally, borrowers may receive a loan amount of up to 2.5X the average monthly payroll costs in the one year prior to the loan or the calendar year. Borrowers in accommodation and food services industries may receive loans of up to 3.5X average monthly payroll costs. No loan will exceed $2 million.

Reach out to your lender for additional information.

2.  More Eligible Expenses: For both initial and second draw PPP loans, additional eligible expenses are now forgivable. In addition to the existing list of payroll, rent, mortgage, and utility expenses, new forgivable uses include:

  • Covered operations (software, cloud computing, human resources, accounting, etc.)
  • Covered supplier costs (supplies, inventory, etc.)
  • Covered worker protection expenditures (PPE, sanitation, testing, etc.)
  • Employer-provided group insurance benefits (included in payroll)

To receive full loan forgiveness, you must allocate costs 60/40 between payroll and non-payroll costs. 

3.  Simplified Forgiveness for PPP Loans under $150,000: For loans under $150,000 there is a simplified loan forgiveness application process in the form of a one-page certification (form to be established) attesting that you, the business/borrower, met the requirements on or before the date you submit your loan forgiveness application.

4.  PPP Loans Are No Longer Taxed as Income: The new law clarifies that gross income does not include any amount that would otherwise arise from the forgiveness of a Paycheck Protection Program (PPP) loan. Also, if you paid deductible expenses with the proceeds of a PPP loan, you can now deduct them as ordinary business expenses. This is also true for any PPP second draw you may take. Please consult with your tax adviser.

PPP Re-Opening: The U.S. Small Business Administration (SBA) announced that the Paycheck Protection Program (PPP) is re-opened, so new borrowers can apply for a first PPP loan. As of Wednesday, January 13, only community financial institutions will be able to make Second Draw PPP Loans to eligible businesses that already took out a first PPP loan. PPP will open to all participating lenders shortly thereafter for borrowers to take a Second Draw PPP Loan. See the announcement and a summary of key PPP updates here.

If you wish to begin preparing your application, you can download the following PPP borrower application forms to see the information that will be requested from you when you apply with a lender:

You can also find one-page overviews on First Draw and Second Draw PPP loans here:

Please visit the SBA’s Paycheck Protection Program Website for additional supplemental materials and regularly updated information. Please also contact your lender for more information.

SBA Debt Relief Extended

If you had a qualifying SBA loan prior to the CARES Act, your business will receive an additional three months of principal and interest payments on your loan, starting in February 2021. Going forward, those payments will be capped at $9,000 per borrower per month.

Underserved borrowers—the smallest or hardest-hit by the pandemic—will also receive an additional five months of P&I payments, also capped at $9,000 per borrower per month. This includes:

  • Borrowers with SBA microloans or 7(a) Community Advantage loans
  • Borrowers with any 7(a) or 504 loan in the hardest-hit sectors (measured by sector-wide job losses) including: food service and accommodation; arts, entertainment and recreation; education; and laundry and personal care services.

Lastly, all new qualifying SBA loans that are approved between February 1 and September 30, 2021 will also receive debt relief payments of principal and interest on the first six months of the new loan. These payments will also be capped at $9,000 per month.

Additional Private Grant and Loan Options

  • Economic and Community Development Institute (ECDI) is an approved PPP lender. Click here for more information.
  • KIVA Cleveland has increased their loan capacity and added a 6-month grace period on payments. Apply here.
  • Honeycomb Credit is offering to float possible SBA loans. Loans are crowdfunded and launch in as quickly as 3-4 days.
  • Growth Capital SBA Community Advantage Loan Program: As part of the Goldman Sachs 10,000 Small Businesses program, businesses can take out maximum loans of $250,000 with interest up to Prime + 6%. Eligible uses of loan proceeds include: fixed assets (real estate must be 51 percent owner-occupied), leasehold improvements, receivables financing, working capital and debt refinancing. Eligible borrowers are manufacturing, distribution, wholesale, commerce or service for-profit businesses.