Important Update: U.S. Small Business Administration (SBA) Disaster Relief Funding
To Our Valued Business Partner:
As we all continue to struggle with the business disruption associated with the COVID-19 pandemic, we are looking for opportunities to assist our customers in managing risk in addition to the variety of insurance solutions that we provide on a daily basis.
One potential resource we have been monitoring is disaster relief funding being made available by the U.S. Small Business Administration (SBA).
There is a wealth of information being disseminated regarding SBA relief packages, including the most recent program signed into law on Friday, March 27th, as part of the CARES Act.
Through this communication, we hope to provide you some targeted resources to help you analyze the options available.
- Information on the initial $7 billion program for disaster assistance loans is available directly through the SBA and is also detailed in the U.S. SBA document available for download below.
- This program provides for low-interest loans up to $2 million to small businesses impacted by COVID-19.
- Application is made directly to the SBA online here.
- Information on the Paycheck Protection Program signed into law on Friday, providing $350 billion for small businesses, is detailed in the description provided by the U.S. Chamber of Commerce, also available for download below.
- The program provides 100% federally guaranteed loans of up to $10 million for businesses that maintain their payroll through the COVID-19 emergency.
- The attachment describes eligibility, loan terms, and the opportunity to convert a portion of the loan to a grant over time.
- This program will be accessed through private lenders that are approved-SBA lenders. We recommend that you contact your current lending partner to determine if they are an SBA-approved lender and the parameters to consider participation in the program.
We focus on middle-market businesses and will continue to support our valued customers and business partners through this challenging situation.
Given the impact that is being experienced across the economic spectrum, these programs could reach their funding limits quickly. We encourage you to consider the options and take swift action if you believe any current or future SBA programs are appropriate to meet your capital needs.
Thank you for the opportunity to continue to serve you as a valued business partner. Stay safe and be well.
Please be advised that any and all information, comments, analysis, and/or recommendations set forth above relative to the possible impact of COVID-19 on potential insurance coverage or other policy implications are intended solely for informational purposes and should not be relied upon as legal advice. As an insurance broker, we have no authority to make coverage decisions as that ability rests solely with the issuing carrier. Therefore, all claims should be submitted to the carrier for evaluation. The positions expressed herein are opinions only and are not to be construed as any form of guarantee or warranty. Finally, given the extremely dynamic and rapidly evolving COVID-19 situation, comments above do not take into account any applicable pending or future legislation introduced with the intent to override, alter or amend current policy language.