Our Mission

Learn who we are and how we serve our community

Leadership

Meet our leaders, trustees and team

Foundation

Developing the next generation of talent

C+CT

Covering the latest news and trends in the marketplaces industry

Industry Insights

Check out wide-ranging resources that educate and inspire

Government Relations & Public Policy

Learn about the governmental initiatives we support

Events

Connect with other professionals at a local, regional or national event

Virtual Series

Find webinars from industry experts on the latest topics and trends

Professional Development

Grow your skills online, in a class or at an event with expert guidance

Find Members

Access our Member Directory and connect with colleagues

ICSC Networking Platform

Get recommended matches for new business partners

Student Resources

Find tools to support your education and professional development

Become a Member

Learn about how to join ICSC and the benefits of membership

Renew Membership

Stay connected with ICSC and continue to receive membership benefits

Government Relations & Public Policy

SBA disaster assistance loans

March 25, 2020

Small Business Interruption Loans

The Coronavirus Aid, Relief, and Economic Security (CARES) Act Paycheck Protection Program contains a new $349 billion Small Business Administration lending program, modeled on the existing 7(a) program, with 100% government guarantee. 

For purposes of this fund, small businesses are defined by SBA size standards as: generally up to 500 employees, but sometimes up to 1,500 employees (depending on the sector) and certain sectors are based on revenue.  Businesses in the Accommodation and Food Services Sector (NAICS Code 72) are eligible with up to 500 employees at each location.  Non-profits with fewer than 500 employees who are 501(c)3s and do not receive Medicaid funding are eligible as well.  Additionally, sole proprietors, the self-employed and independent contractors are also eligible.

Maximum Loan amounts are monthly payroll costs for 2.5 months, not to exceed $10 million. Payroll costs exclude compensation paid to individuals, including the self-employed, in excess of $100,000 a year. SBA’s standard “no credit elsewhere” test is waived and non SBA-lenders approved by Treasury and SBA can provide loans. Loans are conditioned upon employers certifying that they will maintain their average full-time equivalent employment, with incentives to re-hire if employees have been furloughed.

Borrowers can have a portion of their loan forgiven in the amount equal to their payroll costs (not including costs for compensation in excess of $100,000 annually), interest payments on mortgages, rent payments, and utility payments between February 15 and June 30, 2020.  Loan forgiveness will be reduced if the borrower reduces employment by a ratio similar to their reduction in employment or if borrower reduces salaries and wages by more than 25%.

Banks that already participate as SBA lenders will administer by making these low interest rate loans, expected to be tied to the maximum interest rate for SBA loans as February 15, 2020.  The CARES Act contains protections against reselling the loan. The bill also excuses banks who make loans under this program from certain accounting and loss reserve requirements, thereby freeing up funds for additional lending.

Economic Injury Disaster Loans (EIDLs)

The SBA can provide up to $2 million in EIDLs to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Loans amounts will be based on the borrower’s actual economic injury and the company's financial needs, regardless of whether the business suffered any property damage. For purposes of the EIDL program, the SBA defines an eligible entity to include startups, cooperatives, and employee stock ownership plan (ESOPs) with fewer than 500 employees, or any individual operating as a sole proprietor or an independent contractor.  The CARES Act outlines that advance payment may be used for providing paid sick leave to employees, maintaining payroll, meeting increased costs to obtain materials, making rent or mortgage payments and repaying obligations that cannot be met due to revenue losses.

The interest rate is 3.75% for small businesses, and 2.75% for non-profits. This program offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years.  Borrowers who receive Small Business Interruption Loans are not eligible to receive EIDLs.

More EIDL information is available here.