COVID-19: Loans for Healthcare Companies

If your company or organization has been adversely affected by the COVID-19 pandemic because of the social distancing requirements and shelter-in-place orders, you may be eligible to participate in the newly-authorized programs sponsored by the Small Business Association SBA).

There are four programs.

1. The Paycheck Protection Program is intended to provide a direct incentive for small businesses to keep their employees on the payroll.

From the SBA:

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.

Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.

For affiliation rules applicable for the Paycheck Protection Program, click here.

2. A second program sponsored by the SBA is called the Economic Injury Disaster Loan provides vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic. 

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19.

To apply for a COVID-19 Economic Injury Disaster Loan and loan advance, click here.

Here is an article that provides guidance about applying for the program.

Finally, the SBA has two other programs to provide assistance to companies operating with SBA loans or any loan approved prior to 27 September 2020.

1. Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.

For additional details, click here.

2. Under the Debt Relief program, the SBA will automatically pay the principal, interest, and fees of:

        - current 7(a), 504, and microloans for a period of six months; or

        - new 7(a), 504, and microloans issued prior to September 27, 2020.

For more information, click here.