Access to Capital
Access to Capital
The federal government worked swiftly to approve a variety of lending programs backed-by the Small Business Administration (SBA) intended to stabilize businesses during the world-wide COVID-19 pandemic. The primary lending programs are:
- SBA Economic Injury Disaster Loan: Direct SBA lending program, technical assistance provided by the Small Business Development Center (SBDC). Can be used to pay debts, accounts payable, payroll and other operating expenses that can’t be paid because of the disaster.
- Economic Injury Disaster Loan Advances (EIDL): SBA has now made advances available of up to $10,000 on EIDL loans. If approved, these funds can be used for payroll and other operating expenses and will be forgiven. All applicants who successfully submitted an application prior to 3/30/2020 received an email notifying them of this change.
- SBA Express Bridge Loan: SBA Express Lenders are authorized to provide expedited SBA-guaranteed bridge loan financing on an emergency basis in amount up to $25,000. SBA Express Lenders in Schoharie County are Community Bank, NBT Bank & Trustco Bank.
- Paycheck Protection Program (PPP): Any portion of this loan used to pay payroll, rent or utility expenses after disbursed can be deducted from the loan balance as a grant, considered loan forgiveness. Credit may be extended up to 250% of a business’s monthly payroll costs over the last 12-month period. Record keeping of the use of funds is critically important. Your existing financial institution may be able to process; otherwise, Pursuit Lending is recommended. Click here for a program overview.
Technical Assistance:
Small Business Development Center (SBDC)