Available Programs to Help

There are many sources of information on programs available to help you. As a business owner, we strongly encourage you to learn as much as possible when it comes to the options available to you. We will make every effort to keep you educated with the most current information available. Here are three sources with an overview of each program below:

1. The federal government’s Small Business Administration (SBA) Emergency Injury Disaster Loans (EIDL)
2. The SBA’s Express Bridge Loan (EBL) – *Pending Legislative Approval
3. The state of Pennsylvania’s COVID-19 Working Capital Access (CWCA)

1. The SBA’s “Emergency Injury Disaster Loans” (“EIDL”)

The SBA is offering EIDL to small businesses that are unable to pay ordinary and necessary operating expenses as a result of the Coronavirus.

Who is Eligible for an EIDL?

• Most small businesses are eligible for an EIDL.
• Some private non-profits may be eligible as well.
• The requirement is that they show they have suffered substantial economic injury as a result of the COVID-19 virus and as a result are unable to pay their ordinary and necessary operating expenses.
• SBA size standards apply and the business’ primary activity must otherwise be eligible for an SBA loan.

What are the terms of an EIDL?

• Up to $2.0MM.
• Interest Rates: Fixed at 3.75% for small business and 2.75% for private non-profits.
• Term: Term loans up to 30 years.
• No prepayment penalty.
• Collateral: Required if the loan is over $25M. Real estate is preferred but a loan will not be declined for lack of collateral. However, all available collateral will be required. SBA lien will be subordinate to any existing lien.
• Personal guaranties are required

How does a business apply for an EIDL?

• EIDLs are delivered directly by the SBA. Community Bank plays no role in the application process or funding. The business can submit either a paper or on-line application. The on-line application can be submitted at the following site: https://disasterloan.sba.gov/ela/. For additional questions please contact:
• Pennsylvania – Angel Marschik, Supervisory Lender Relations Specialist, Pittsburgh District Office, U.S. Small Business Administration, (412) 395-6560 x 111, angela.marschik@sba.gov
• West Virginia – Richard Haney, Lender Relations Specialists, West Virginia District Office, U.S. Small Business Administration, (304) 623-7449, richard.haney@sba.gov

2. The SBA Express Bridge Loan (EBL)*

• This loan program is part of the pending “CARE” act, which as of this communication has not yet been passed into law. There is as of yet no developed process to follow, but such information should be forthcoming soon. This is what we know as of now.
• Small employers with 500 employees or fewer will be eligible to apply for the loans.
• Loans would be immediately available through existing SBA-certified lenders, including banks, credit unions, and other financial institutions, and the SBA would be required to streamline the process to bring additional lenders into the program.
• The Secretary of Treasury would be authorized to expedite the addition of new lenders and make further enhancements to expedite delivery of capital to small employers.
• The size of the loans would be tied to an applicant’s average monthly payroll; mortgage, rent, and utility payments; and other debt obligations over the previous year. The maximum loan amount would be $10 million.
• Conditional upon business retaining their employees and payroll levels during the covered period (March 1, 2020, through June 30, 2020), the portion of the loan used to cover payroll and payments on pre-existing debt would be forgiven. Further, employers with tipped employees would receive forgiveness for additional wages paid to such employees during the covered time.
• The bill would expand the allowable uses for the existing 7(a) Small Business Administration loan program to permit payroll support, including paid sick leave, supply chain disruptions, employee salaries, mortgage payments, and other debt obligations to provide immediate access to capital for affected small businesses.
• The cost of participation in the 7(a) program would be reduced for both borrowers and lenders by providing fee waivers, an automatic deferment of payments for one year, and no prepayment penalties.

3. Pennsylvania’s COVID-19 Working Capital Access (CWCA)

• Loan applications are available to small businesses that employ 100 or fewer full-time employees, including businesses in the agricultural, service and hospitality sectors.
• The maximum loan amount will be $100,000 for working capital with a 0% interest rate, subject to the statutory requirement for the agriculture sector, and a term of three years. They will be awarded on a first-come, first-serve basis.
• A link to the PIDA website for the CWCA Program is CWCA
• All PIDA loan applications must be submitted through a Certified Economic Development Organization (CEDO). For the list of CEDO’s operating within Pennsylvania, please refer to CEDO

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