Feds: SBA and Treasury Programs Available for Small Business Relief
Apr 03, 2020 10:11AM
By David Dykes
The Federal Deposit Insurance Corp. said it is advising financial institutions of multiple forms of relief available in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to small businesses through programs administered by the Small Business Administration (SBA).
The U.S. Department of the Treasury also offers small business loan programs.
The FDIC said it is encouraging financial institutions to consider the programs as they work with small business borrowers with less financial flexibility to weather near-term operational challenges due to the Coronavirus Disease 2019 (referred to as COVID-19).
Among the highlights:
- The FDIC said it encourages financial institutions to consider the relief available to small businesses through new programs administered by the SBA, and more fully described at https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources.
- The SBA programs include:
- The Economic Injury Disaster Loan program under Section 7(b) of the Small Business Act, which provides funds to small businesses to cover economic injury resulting from the disaster, such as a loss of revenue; and
- The Paycheck Protection Program, which provides loans to encourage certain qualified small businesses to retain employees through the COVID-19 pandemic and includes loan forgiveness subject to certain conditions.
- The SBA is streamlining its processes to enable more financial institutions to use these programs for small business borrowers affected by COVID-19, federal officials said.
- Beginning April 3, 2020, the FDIC will post on its Coronavirus (COVID-19) webpage updated program information from the SBA for financial institutions that want to learn how to access its new programs.
- Information regarding the Treasury's small business loan programs is available.
- The FDIC said it won't criticize financial institutions' good faith efforts to prudently use the SBA and Treasury programs to work with small business borrowers affected by COVID-19.