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Business Relief Financing

Business Relief Financing Options – SBA Options

business funding relief

Running a business during the COVID-19 outbreak comes with unusual challenges. To assist small businesses during this time, the federal government has passed the CARES Act, which include the Payroll Protection Program (PPP) and the SBA Economic Injury Disaster Loan (EIDL).

What business funding relief options exist?

Without a doubt, many owners must know that the PPP will only cover two months of expenses to cover payroll.  Furthermore the EIDL can take two to four months to process. I need funds beyond just covering payroll expenses. Are there other financing options available to me? Yes. Keep reading to learn more about other private initiatives. Also, you may be eligible for a loan or grant from your local or state government. You also may be eligible for a Term Loan or Business Line of Credit from Lendinero.  To learn more about our solutions write to us at: contact@lendinero.com

What is an SBA Economic Injury Disaster Loan and How Do I Apply?

SBA disaster loans lendinero

Information about SBA Economic Injury Disaster Loan program

The United States Small Business Administration (SBA), is a government agency that provides financial assistance to small businesses during disasters. This information focuses on the SBA Economic Injury Disaster Loan program in particular. However, the SBA does offer a variety of loan types.

If you live in an area that experiences hurricanes, tornadoes or natural disasters, you’re likely familiar with the SBA Economic Injury Disaster Loan program. However, the program was recently broaden to include small businesses impacted by COVID-19.

What businesses are eligible for an SBA disaster loan?

The EIDL loans are available to businesses with less than 500 employees. Also, businesses in states that have declared for disaster.  Most states have declared themselves as disaster areas because of Covid-19. Last, your business must have been operating before February 1, 2020. 

How do SBA disaster loans work?

Amount and Terms

Loans of up to $2 million are available to businesses, with repayment terms of up to 30 years. The amount your business is eligible for depends upon a variety of factors, including loss in revenue, payroll costs, and rent payments.  More important, the financial documentation that you present to show previous revenues, expenses and losses.

What are the Interest Rates, Fees, and Repayment?

Interest rates are 3.75% for for-profit entities. There is no fee to apply for loans under $25,000, and a $100 processing fee for loans above that. You start repaying your loan 12 months after you receive your funds.

Are there any Collateral Requirements?

First, there is no collateral requirement to secure loans below $25,000. Second, for loans above $25,000, no specific collateral is required. However, the business owner will provide a personal guarantee. Last, the SBA will file a lien with the Uniform Commercial Code, known as a UCC-1.

How can you use the proceeds of the loan?

You may use the loan proceeds for payroll costs, salaries, sick leave, business rent, business mortgage payments, material costs, and existing debt.

What documents will I need?

Here is some of the information and paperwork you will need to have on hand to apply:

  • Basic business information, such as your legal business name
  • Active status of the business with the Secretary of State, SOS
  • Employer Identification Number (EIN), and date established
  • Gross revenue numbers for January 31, 2019 to January 31, 2020
  • Cost of goods sold for January 31, 2019 to January 31, 2020
  • Expenses from January 31s, 209 to January 31, 2020
  • Preferably, a profit to loss statement for 2019 and January of 2020
  • Any other financial documentation that you may have
  • Business owners’ information
  • Number of employees employed as of January 31, 2020

How soon can I expect to get the funds?

While the SBA has streamlined their existing loan application process to get funds there are still uncertainties.  The SBA expects to have a decision on your application within hours.  However, the process may take from 1 month to 4 months.  Without a doubt, the SBA was not ready to handle the amount of applications it is receiving.

How can I get the $10,000 advancement? 

As part of this program, the SBA is now also offering emergency advances on the EIDL loans only. Once a small business completes an application for the EIDL loan, they can request an advance on the funds up to $10,000. According to the SBA, funds will be made available within three days of a successful application.  However, this may take longer.  Realistically, it may take up to 30 days or more. Also, you can use the funds to pay sick leave for employees who are unable to work due to a direct effect of COVID-19, payroll, materials, rent or mortgage payments, or repaying outstanding obligations.

More important, you must apply before December 31, 2020

Documents Needed for Economic Injury Disaster Loans and Loan Advance

It should be noted, that applying for the EIDL Loan and or advancement is just like applying for any business loan you have previously applied for.  Even though the government has taken steps to assist businesses, extensive paperwork and financial documentation is required.  With this in mind, specialists can help you step by step to review forms,  conduct financial analysis and prepare the package. Thereafter, all information is submitted to the SBA.   Last, please download each document in the following order with your loan specialist/agent. 

Just click each link and donwload it.   


Phase I:

  1. Agent Service Agreement

  2. Addendum to Agent Agreement – Update Notice

  3. SBA Form 159 D Fee Disclosure Agreement 

  4. Checklist and Process 

Phase II 

  1. Economic Injury Loan Supporting Information Form 

  2. Request for Transcript 4506 T Form

Phase III

  1. SBA Form 413 D – Personal Financial Statement 

  2. SBA Form 1368 Additional-Filing-Requirements

  3. SBA Form 2202 Schedule-of-Liabilities

Update Notices & Disclosure to Applicants

  1. Update Notices to Applicants and Disclosure I

These forms are for the EIDL Loan and or Advancement only.  

What is the SBA (7a) Paycheck Protection Program, also known as PPP?

The SBA PPP loans provide small businesses with payroll assistance because of Covid-19.

These loans are designed to get funds to small businesses as fast as possible. Because of this, the application process for an SBA PPP loan is less complex than the EIDL loans.

SBA-approved lenders will distribute the funds to small businesses.  However, some banks are not approved and others have stopped taking applications.  With this in mind, you need to be checking consistently for changes and updates.

Without a doubt, the goal of the PPP is to assure businesses keep employees on their payrolls during this disaster. Because of this, borrowers are eligible to have a portion of their loans forgiven when they demonstrate that they retained their employees. Moreover, if they restore employees too.

What businesses are eligible to apply?

Businesses that have been impacted by COVID-19 and meet the following requirements are eligible to apply:

  • Businesses employing less than 500 employees (this includes all employees – full-time, part-time, or any other status)
  • Individuals who are sole proprietors, independent contractors, or are otherwise self-employed

How do SBA PPP loans work?

Amount and Terms

Loans of up to $10 million are available to businesses. The amount your business is eligible for is based upon 8 weeks of average payroll, plus an additional 25% of that amount. SBA PPP loans have a term length of 2 years to repay back.

Interest Rates, Fees, and Repayment

Interest rates are 1%.  Because the goal is to get the funds as fast possible, there is no fee to apply. Also, loan payments will be deferred for at least 6 months.

Collateral Requirements

There is no collateral or personal guarantee requirement to secure these loans.

What is the Loan Forgiveness program?

A key part of SBA PPP loans is they are eligible for loan forgiveness. Businesses that meet certain criteria are eligible to have a portion of their loans forgiven if the funds were used for payroll costs, interest on mortgages, rent payments, and utility payments made in the eight weeks following the loan origination. However, current guidance is that 75% of the funds must have been used to cover payroll expenses.

The amount borrowers are eligible to have forgiven will be reduced if:

  • The business does not maintain full-time employee headcount, or does not rehire quickly
  • There is a reduction in employee wages of more than 25%

For a more detailed overview of how the SBA PPP loans will work, check out this excellent guide from the U.S. Chamber of Commerce.

How do I apply for an SBA PPP Loan?

SBA-approved lenders and some other financing providers are now accepting applications for SBA PPP loans.

What else should I know about the application process?

      • Starting April 3, 2020, if you have a businesses or your a sole proprietor, you can start applying. On April 10, 2020, independent contractors and self-employed individuals can initiate the process.
      • There are funding caps, so you need to apply as quickly as possible.
      • In addition, you can apply through any existing SBA 7(a) lender that is participating.
      • You should consult your local bank to determine whether or not they are offering this program.
      • Aside from the application, you will need to provide its lender with payroll information and other supporting documents.

Apply Now (download the form):

  1. PPP Borrower Application Form

Update Notices & Disclosure to Applicants

  1. Update Notices to Applicants and Disclosure

Another important point, is to become familiar with the fees allowed on the PPP by agents and lenders as pointed out by the US Department of Treasury.  (download form)

PPP Lender Information & Agent Compensation Fact Sheet

Other Business Relief Funding Solutions?


Business Line of Credit Secure by Real Estate

  • Draw Additional Funds after First Payment is Made
  •  Line of Credit
  • NO Minimum FICO Required
  • Factor Rates 18% -29%
  • Funding up to 4x monthly Gross Deposit
  • Daily & Weekly Payment Programs
  • 10-18 Month Terms
  • No Pre-Payment Penalty
  • Early payment discounts
  • MUST HAVE- Business Deposits to Qualify
    an Amounts Offers: up to $500,000
  • No mortgage payoffs “keep your mortgage in tact”

Today, you have another choice in these hard times.  Acceptable property types include: residential, investment or commercial properties to secure the business line of credit.  Another relief financing solution by Lendinero.


Loan Modification or Consolidation

  • Obtain a permanent loan modification
  • Reduce current payment from 20% to 60%
  • Avoid litigation or bankruptcy
  • Do you have more than 1 loan? consolidate payments.
  • Good payment history; keep your options open
  • Save your business from closing
  • Improve cash flow
  • All calls, letters and emails stopped during negotiation stage
legal covid19 aid

Legal Assistance for as little as $39.99 per month. Nationwide legal coverage.

  • Speak with your attorney on an unlimited number of legal issues.
  • Legal research on each matter is included at no additional charge.
  • An attorney can make phone calls or write letters on your behalf.
  • Debt collection letters are included at no additional charge.
  • Have an attorney review documents and draft contracts.
  • At no additional charge legal forms are included.
  • Defense work for your business in civil lawsuits available.
  • Pre-trial work included at no additional charge.

Without a doubt, you will save on legal representation and legal costs.  All in all, an attorney on your side is helpful during these times.


To sum up, please visit the following link and become familiar with fees allowed by the SBA.  Furthermore, Lendinero is acting as an agent or broker in compliance with the fees allowed by the SBA. Please visit:

SBA Programs and Fraud Alerts

SBA Fee disclosures

The compensation an agent charges you must bear a necessary and reasonable to the services actually performed. In addition, they must not include any expenses which are deemed by SBA to be unreasonable.

13 CRF 103 or SOP 50-30 of the SBA

Thereafter, it states: Compensation must not include charges prohibited in 13 CFR 103 or SOP 50-30, Appendix 14.  What happens when the SBA deems that the amount of compensation is unreasonable? These actions may be taken:

  • The Agent must reduce the compensation to an amount SBA deems reasonable
  • Refund you any sum in excess of the amount SBA deems reasonable
  • Refrain from charging or collecting directly or indirectly from you an amount in excess of the amount SBA deems reasonable.

Violation by an Agent of any of these rules may result in SBA’s suspension or revocation of the Agent’s privilege of conducting business with SBA.

Agents and Non-Agents

The following are not considered agents according to the SBA. First, an applicant’s accountant for the preparation of financial statements or tax returns required by the Applicant in the normal course of business.  Furthermore, that said accounting services are not related to the loan application.  Second, any professional retained by you in the normal course of business are not considered agents.  Moreover, that those serves are not related to the application or loan closing. Direct costs associated with document preparation in connection with the loan closing do not need to be reported in the SBA Fee Disclosure Agreement.  Besides, an agent who charges more than the fees below needs to submit an itemization of services and justification of work performed to the SBA.

  • $500 for a disaster home loan
  • $2500 for a disaster business loan

Summary and Disclosure

In summary, you are not obligated to utilize our services.  Loan specialists and agents will assist you with loan packaging, prepare financial documents, document reviews, analysis, consultation and any services allowed by the SBA.   Last but not least, PPP and EIDL approvals are subject to credit reviews, underwriting and due diligence.

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