The Department of Planning and Development will communicate important information and share business resources to enable you and your employees to stay safe and informed during these uncertain times.
The CARES Act & Emergency Loan Options for Small Businesses
The Coronavirus Aid, Relief and Economic Security (CARES) Act was voted on at the end of March and it includes many different strategies to provide economic relief during this pandemic. Below is additional information for three Small Business Administration (SBA) programs available to assist small businesses.
The Paycheck Protection Program (PPP)
Paycheck Protection Program (PPP) loans, unlike Economic Injury Disaster (EIDL) loans, are processed through any existing Small Business Administration (SBA) 7(a) lender or through any participating federally insured depository institution, federally insured credit union, and Farm Credit System institution. You should consult with your local lender as to whether it is participating.
The Paycheck Protection Program loan is eligible for forgiveness as long as your business meets the criteria around employment.
Applications for the Paycheck Protection Program are being accepted on a first-come, first-served basis beginning Friday, April 3. It is expected that the funds for these loans will be expended very quickly. Please note that your SBA lender may have a modified version of the application. Check with them first.
EIDL loans are low interest loans to small businesses suffering economic injury as a result of the pandemic. Small businesses can apply for loans up to $2 million, with an advance of up to $10,000. The first payments are not due for 12 months.
Here are some other key features of EIDL loans:
Maximum loan amount of $2 million
Interest rate of 3.75% for for-profit businesses
2.75% for eligible private non-profit entities
Extended loan maturity for 30 years
Loans funded by the U.S. Treasury
No collateral required for loans under $25,000
No cost to apply and no obligation to take the loan if offered
Applicants may apply online, receive additional disaster assistance information and download applications at here.
Express Bridge Loan Pilot Program
TheExpress Bridge Loan Pilot Programprovides expedited bridge loan financing for businesses that have been affected by COVID-19. The loans are backed by the Small Business Administration (SBA). The program is a supplement to the SBA’s existing disaster loan program. This program is meant to provide an immediate short-term loan of up to $25,000 to tide a business over in a disaster situation.
If your current bank has already been designated an SBA Express Lender,they may be able to provide a $25,000 bridge loan quickly.
Stay Informed about COVID-19
The City of Lowell will continue to post COVID-19 updates at http://lowellma.gov/coronavirusas more information becomes available. You can also sign up for theCity's alert system to receive emails, calls, or texts for critical updates.
