Loan Options for Small Businesses - COVID-19

SBA Paycheck Protection Program Round 2 (PPP2)

In December 2020, the Consolidated Appropriations Act, 2021 was passed.  In the Act, and additional $284 billion was approved for a second round of PPP loans for small businesses.  In order to qualify for a PPP2 loan, you must have had more than a 25% reduction in gross revenue during any quarter of 2020 compared to the same quarter of 2019, along with some other similar requirements to the first round of PPP loans.  We'll update with further information as further legislation/guidance is available.  Please reach out to us if you have any questions on if you qualify for this program.

SBA Paycheck Protection Program (PPP)

The Paycheck Protection Program under the CARE's Act provides small businesses (less than 500 employees) with zero-fee loans of up to $10 million to cover payroll, mortgage, interest, rent and utility costs for a period of up to 8 weeks.  

The loan size would be equate to 2.5 times the average monthly payroll.  Payments on principal and interest are deferred for one year. Additionally, the Paycheck Protection Program would allow borrowers to become eligible for loan forgiveness equivalent to the amount spent on covered expenses during the 8 week (see UPDATE) period after the loan was closed.  UPDATE - On 6/3/2020, the Senate approved the House bill that extended the period for which you covered expenses could span up to a total of 24 weeks.  In addition, the legislation also reduced the percentage of expenses that had to go to payroll costs for forgiveness from 75% to 60%.  To qualify for the loan forgiveness, the employer must also be able to maintain their pre COVID-19 virus level of full-time equivalent employees or the forgiveness would be proportionally reduced by the reduction in workforce.

      Link to PPP information sheet for borrowers

    Link to application released on 4/1/20 - we still recommend talking to your lender on how to proceed as your application will go through them.

Allowable uses of the funds:

  • Payroll Costs
  • Costs related to group health benefits
  • Employee Salaries
  • Rent payments
  • Utilities
  • Mortgage and interest payments
  • Interest on other debt payments.

Other Items of Notes:

  • No collateral or personal guarantees required
  • Loan fees are waived
  • Deferral of payments and no prepayment penalties
  • Payroll tax credits and payment deferrals - A business who gets a loan through Paycheck Protection Program will not be able to use the payroll tax credits available under the Families First Coronavirus Act for employee retention or the deferral of employer-side social security payroll taxes under the CARES act.  There may be some ability to use these credits and deferrals prior to applying for the Paycheck Protection Program.

How to Apply? You can apply through any lender certified to provide SBA programs.  We recommend reaching out to your bank or lender as most in the area are authorized for the SBA programs.  If you need to be referred to a lender, please let us know.

Please let us know if you need any assistance with your application or have questions.  You can call the office, reach out to your accountant or email

The U.S. Chamber of Commerce has also created a helpful Small Business Emergency Loan Guide that can be found HERE.

SBA Economic Injury Disaster Loans

The CARE's Act contained special provisions related to the SBA's Disaster Loan Assistance Program.  Under the program, small businesses can apply for loans of up to $2 million at low-interest rates (3.75%*).

We recommend applying for this loan even if you plan on applying for the Paycheck Protection Program.  It can provide a forgiveable $10,000 emergency advance and the loan can be rolled into the Paycheck Protection Program.

Key changes of the Program under the CARE's Act include;

  • Waiver of the personal guarantee requirement and the requirement that the business be unable to obtain credit from other sources.
  • Provides for $10,000 emergency advance (within three days of submitting application, which will not be required to be paid back.

​Applicant can apply online and some documents you can be expected to be needed are as follows:

  • SBA Loan Application
  • Tax information Authorization
  • Copy of your most recent tax return.
  • Schedule of Liabilities
  • Personal Financial Statement.

     ​You can apply through the SBA Here.

Please let us know if you need any assistance with your application or have questions.  You can call the office, reach out to your accountant or email

SBA Express Bridge Loans

Express Bridge Loans may be available to you under the SBA Express Bridge Loan (EBL) Program.  These loans are available to supplement the SBA's other programs and allow for bridge loan financing on an emergency basis in amounts up to $25,000 for disaster-related purposes.  These loans are for businesses that already have an existing relationship with the SBA.

     SBA Express Bridge Loan Guide can be found Here.

"PIDA" - Pennsylvania Working Capital Access Program Loan

The COVID-19 Working Capital Access Programs (CWCA) is administered by the Pennsylvania Industrial Development Authority (PIDA) to provide working capital financing to small businesses in the state that are adversely impacted by the COVID-19 Virus. 

Eligibility:  Small businesses of under 100 employees.

Uses: For working capital needs of the business.

Amount: The maximum amount of the loan is $100,000.

Terms:  Loan terms are for three years with a 12 year amortization, with a balloon payment due at maturity.  No payments required in the first year.  The interest rate is 0% unless the business is agriculture (2%).

How to Apply?  Loan applications are packaged by a CEDO that services your county.  Blair County - ABCD Corp, The Progress Fund and SAPDC.  Centre County - Moshannon Valley Economic Development Partnership, The Progress Fund and SEDA-COG.  Additional CEDO's can be found HERE.

     COVID-19 CWCA PIDA Loan Information can be found Here.

Please let us know if you need any assistance with your application or have questions.  You can call the office, reach out to your accountant or email