Federal COVID-19 Response and Recovery Programs

In response to the ongoing economic impacts of COVID-19, the federal government developed and is overseeing a series of programs to support small businesses through this difficult time.

Economic Injury Disaster Loan Program

This program is now CLOSED to new applicants.

Small businesses and nonprofits located in a federally designated disaster area (all of the US currently qualifies) may apply online for a loan up to $2 million through the SBA Economic Injury Disaster Loan (EIDL). 

Paycheck Protection Program 

The Payment Protection Program is CLOSED as of May 31, 2021.  Loan forgiveness activities are still underway.

Certain businesses and nonprofits impacted by the coronavirus may receive a loan to up to $10 million through the SBA Paycheck Protection Program.  For businesses that use the loan proceeds to retain workers and pay other specified business costs, all or a portion of the loan can be forgiven.  The Paycheck Protection Program is only available through participating lenders and financial tech companies.    

SBA Debt Relief on Certain Non-Disaster Loans

The SBA paid 6 months of principal, interest, and any associated fees that borrowers owe for all borrowers of 7(a), 504, and Microloans in regular servicing status, as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020.  funding for these initial actions were funded through the CARES Act.

The Economic Relief Act authorized additional debt relief payments to 7(a), 504, and Microloan borrowers beyond the six-month period described above. The level of assistance varies based on when the loan was approved and will begin on or after February 1, 2021.  The SBA encourages borrowers to contact their lender for questions on the availability of this assistance for your SBA loan.​

  • SBA Loan Repayment launch page.

  • This relief is not available for loans issued under the Paycheck Protection Program or Economic Injury Disaster Loan program. 

  • Weekly lending report for the week ending June 4, 2021.   Information includes race, ethnicity, gender, and veteran participation in the SBA 7(a), 504, and Advantage Loan Programs.  

Deferrals of SBA Disaster Loans

The SBA provided an automatic deferment of SBA disaster loans, which are in good standing on March 1, 2020.  All payments were deferred to March 31, 2022.  Certain restrictions apply.

  • Disaster loan deferral launch page.

  • Interest will continue to accrue on the outstanding balance of the loan throughout the duration of the deferment.

  • Borrowers should review the information launch page.

  • This relief is not available for the Paycheck Protection Program loans or the Economic Injury Disaster Loan program.

Employee Retention Credit 

The Employee Retention Credit is designed to encourage businesses to keep employees on their payroll. Employers of all sizes that face closure orders or suffer economic hardship due to COVID-19 are incentivize to keep employees on the payroll through a 50% credit on up to $10,000 of wages paid or incurred from March 13, 2020 through December 31, 2021.

  • Revisions to the Tax Code:  Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, amended and extended the employee retention credit (and the availability of certain advance payments of the tax credits) under section 2301 of the CARES Act until June 30, 2021. The American Rescue Plan Act, enacted March 11, 2021, added section 3134 to the Internal Revenue Code to amend and extend the employee retention credit (and the availability of certain advance payments of the tax credits) until December 31, 2021. 

  • NEW IRS guidance on Employee Retension Credit:  Notice 2021-20Notice 2021-23Notice 2021-49, and Revenue Procedure 2021-33  for calendar quarters in 2020 and 2021. 

Paid Leave for Employees - Reimbursement of Time Off for Vaccines, Sick Leave, and Family Care

Small businesses and tax-exempt organizations with under 500 employees, and certain governmental employers, are authorized to claim refundable tax credits that reimburse them for the cost of providing paid sick and family leave to employees due to COVID-19, including leave taken by employees to receive or recover from COVID-19 vaccinations. 

Advance Child Tax Credit

The American Rescue Plan authorized an enhanced Child Tax Credit as authorized by the American Rescue Plan Act.  In general, the credit payment is calculated based on 2020 tax returns.  If not yet filed, the payment will be based on 2019 tax return.  Individuals who do not regularly file tax returns may sign-up to receive tax credit payments.

Main Street Lending Program for Medium-Size Businesses

The Main Street Lending Program is program is closed as of Janaury 8, 2021.

The Main Street Lending Program is designed to assist small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF).   Implementation of the program will be provided through a special purpose vehicle, created by the Federal Reserve Bank of Boston, to purchase participating in loans originated by eligible lenders. Lenders will retain a percentage of the loans.

Eligibility of borrowers is limited to businesses who meet one of these two criteria:  (1) the business has 15,000 employees or fewer; or (2) the business had 2019 revenues of $5 billion or less. Loans will have a four year maturity, and principal and interest payments on the loans will be deferred for one year.  The Main Street Programs can be used to originate new loans (under MSNLF and MSPLF) or increase the size of existing loans (under MSELF). 

  • The Federal Reserve issued its required report to the US Congress on the activities of the Main Street Lending Program.  As of October 7, 2020, the total outstanding amount of loans was $1 trillion with total value of the collateral pledged being $38.5 billion.  

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