Navigating COVID-19 Relief & SBA Loans

Our goal in writing the 1,000,001th guide to the CARE Act legislation is to ensure that the businesses for whom these funds are intended can access them. And, that startups for whom this program IS NOT designed should turn to their current cap table or balance sheet of lenders to help them weather the headwinds they’re facing. 

Last Updated — April 23, 2020

 

There’s a lot of noise out there right now. As you dig into the tools and resources below, please keep in mind —

 

  • Funds for PPP round 2 are not expected to last long. These loans will be on a first-come, first-serve basis. Urgency to submit an application will be important. Banks are already prioritizing existing customers. We’ve partnered with Lendio to help you with your application.

  • While some portion of the loans may not need to be paid back, if used incorrectly, the company company could be charged criminally and will have to pay it back. 

  • These loans will not fix issues in your business or business model. The loans are designed to support the business during a time when demand has decreased because of the epidemic and will not provide true runway for a startup.

 

  • Many companies that have raised venture capital will not be eligible for SBA loans. See more here.

  • If you already have debt, it is important to discuss options with your lender. Most commercial loans prevent companies taking on more debt and some lenders may only allow new debt if it is subordinated.

  • These loans are designed to support operational costs and are not able to be utilized for growing your business. You will be asked to account for  how you utilized the capital and track the expenses it funded.

  • You are eligible to use both loans but you cannot use both loans to pay for the same expense. They must be used differently.

 

There Are Two SBA Options For Covid-19 Help

Economic Injury Disaster Loan

[✓] — Headquartered in a US State or Territory?

[✓] — Is your business defined as a small business by the SBA?*

[✓] — Is your business unable to pay normal and necessary operating expenses because of Covid-19? 

[✓] — If seeking funding more than $200,000 — Does the business or its owners have willingness to pledge assets, if the business cannot repay the loan?

[✓] — Will the business be reliable to pay back the loan? (Ultimately Determined by the SBA)

If Yes, Learn More →

 

paycheck Protection Program Loan

[✓] — In business as of Feb 15, 2020?
[✓] — Have less than 500 Employees?
[✓] — Pay employee salaries? 
[✓] — Pay payroll tax?

Starting April 3, 2020, small businesses and sole proprietorships can apply.

Starting April 10, 2020, independent contractors and self-employed individuals can apply.

If Yes, Learn More →

Get Started On Your payroll protection loan Application →

 

*

Unsure if your business is defines as a small business?
Use this tool to find out: Small Business Administration

NAICS Code Quick reference:
SaaS business - 511210
Ecommerce - 454111
Tech enabled services - 541519

State Specific Relief

— We’re adding to this section as more States provide programs for SMB relief from COVID-19. If you have a State or City program we haven’t listed, please email us at intro@indie.vc and we’ll add it right away.

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