The SBA will have two loan programs to assist you through COVID-19:  the Disaster Relief Program, formally known as the Economic Injury Disaster Loan Program (EIDL) and the Paycheck Protection Program.  Disaster Relief Program loans are handled directly through the SBA, not through the bank.  These are long term, low interest rates loans.  Here is the link to the website:

https://disasterloan.sba.gov/ela/Declarations/Index 

• Loans are generally up to $2 million and for working capital.
• Rates are normally at Prime.  Term is generally up to 30 years.  Terms and conditions will come from SBA during the application process with SBA.
• Application Forms are electronic.
• Once you have applied with the SBA, they will handle the process from initial disbursement to final disbursement.

The stimulus bill (CARES Act) that was just signed by the President includes funding for a new SBA program called the Paycheck Protection Program.  The Program Guide is being developed by the SBA and should be out in the next few weeks – until that happens no applications can be taken for this product.  You would work with the bank on this program. The loan amount is determined by 2.5 X average monthly payroll of the business and there is a loan forgiveness feature – if employees are kept, the loan will be forgiven and the forgiveness does not have to be reported as taxable income – it would effectively be a grant.

Banks are advising clients to apply for the Disaster Relief Program Loan while the Paycheck Protection Program Guide is being developed and all the eligibility requirements and program details become known.  Businesses cannot obtain both a Disaster loan and a Paycheck forgivable loan, but will be able to they weigh their options if they pursue loans through both programs.