+1 512-472-9033

Federal Loan Application

Federal Covid-19 Stimulus Package

$349 billion has been made available to american small businesses from the $2 trillion stimulus package.

The Federal Government will give cash flow assistance via 100% Federal Guaranteed loans to small business employers who maintain staff on their payroll during the emergency.

If employers maintain their full payroll the loans will be forgiven or written off in full. If however the employer makes redundant 50% of the staff the loan forgiveness will be for 50% of the loan. The % of forgiveness is directly proportional to % of staff the employer keeps.

The loan is retroactive i.e. backdated to 15th February 2020 to allow the employer to rehire staff he may have let go prior to the CARES Act becoming law.


The Small Business Act (SBA) defines who is eligible :

  1. 501(c)(3) non profit companies
  2. 501(c)(19) veterans’ organisations
  3. Tribal business concerns described in section 31(b)(2)(C) of the
  4. A company with fewer than 500 employees
  5. A company with greater than 500 employees so long as it meets it’s industry NAICS code staffing
  6. Sole proprietors
  7. Independent contractors
  8. Restaurants and Hotels can apply individually from each location they are based in but not as a chain like Hilton.For example Hilton Dallas and Hilton Houston apply

The government is keen to avoid duplication of assistance so if the company has already applied for relief via another source it will not be eligible.


Upto a maximum of $10m.The loan size is determined by the borrowing entity’s payroll cost in the previous year The formula is 2.5 times the average monthly payments for payroll cost incurred in the prior year.

  1. Payroll support such as employee salaries and paid sick/medical leave
  2. Insurance premiums
  3. Mortgage payments
  4. Rent payments
  5. Utility payments (phone/electricity)

Borrower self certifies that in good faith his business has been harmed by the Covid 19 pandemic and he will use the funds to retain workers and maintain payroll.


The loan is to cover the period from the 15th February to 30 June 2020.It is likely that the loan period will be extended should the crisis worsen in America.

No personal guarantee or collateral is required for the loan. LOAN FORGIVENESS

Amount forgiven can not exceed the amount of the loan.

Compensation of individual salary above $100,000 for one year as pro rated for the covered period not refunded.

Borrowers eligible for loan forgiveness equal to the amount spent over an 8 week period from origination on payroll costs,interest payments on any mortgage begun prior to 15th February 2020;rent payments on any leases in force prior to 15 February 2020 and payment of any utility service prior to 15 February 2020.

Any loan amounts not forgiven at the end of one year is carried forward as an ongoing loan with a maximum term of 10 years and a maximum interest of 4% interest.The 100% Federal guarantee of the United States will still apply to these loans until maturity.


Loans are immediately available through existing SBA certified lenders such as banks and credit unions.

However both the SBA and the US Treasury are keen to expedite the addition of new lenders to expedite the delivery of capital.Currently an agent can apply via the SBA website to become a new lender via the CARES Act platform.The US Treasury should have an online application form up on its website in the coming days.


Express loans are available to companies most in need such as those in rural areas, companies in socially disadvantaged areas,veteran communities,women owned businesses, and companies that have been open less than 2 years.

Please contact Ed Downey by emailing [email protected] to arrange a call back from one of our Federal Stimulus loan experts.