SBA COVID-19 Economic Disaster Loans & Programs

Notice: The Small Business Administration (SBA) continues to refine its online resources for Coronavirus Relief Options. This page has been updated as of Monday, October 12th, 2020, to bring you the most current and accurate information about these federal economic disaster assistance programs and their requirements. It is provided to our community as a local resource of information available elsewhere on federal government websites and we will strive to keep it as up-to-date as possible pending any additional changes by the federal government.

On this page:
Paycheck Protection Program
List of Cuero-Area Lenders
Economic Injury Disaster Loans
SBA Express Bridge Loans
Area SBA District Offices
SBA Debt Relief

Paycheck Protection Program

Notice: Paycheck Protection Program closed August 8, 2020

Current law dictates that the Paycheck Protection Program (PPP) close at the end of August 8, 2020. As such, SBA is no longer accepting PPP applications from participating lenders.

Paycheck Protection Program Loan Information

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

SBA will forgive loans if all employees retention criteria are met, and the funds are used for eligible expenses. Click here to read more about PPP loan forgiveness below.

Supplemental Materials

Frequently Asked Questions for Lenders and Borrowers (effective 2020-10-07)

How to Calculate Loan Amounts (effective 2020-06-26)

Frequently Asked Questions for Faith-Based Organizations Participating in the Paycheck Protection Program and Economic Injury Disaster Loan Program (effective 2020-04-03)

Affiliation Rules

Affiliation rules for the Paycheck Protection Program (effective 2020-04-03)

Interim Final Rule for Applicable Affiliation Rules (effective 2020-04-15)

Loan Details and Forgiveness

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll).

Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

  • PPP loans have an interest rate of 1%.
  • Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.
  • Loan payments will be deferred for six months.
  • No collateral or personal guarantees are required.
  • Neither the government nor lenders will charge small businesses any fees.

Loan Forgiveness

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the 24-week period after receiving their PPP loan
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
  • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
  • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined

Note: On Wednesday, October 7th and Thursday, October 8th, 2020, the SBA and U.S. Department of the Treasury released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. This action streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses while also ensuring sound stewardship of taxpayer dollars. Please see the links for the application and instruction documents at the bottom of the list of applications below.

Click here to download the Paycheck Protection Program Loan Forgiveness Instructions and Application (effective 2020-06-16).

Haga clic aquí para descargar las Instrucciones y la Solicitud de condonación de préstamos Programa de Protección de Pago (efectivo 2020-06-16).

Click here to download the Paycheck Protection Program EZ Loan Forgiveness Application (effective 2020-06-16).

Click here to download the Paycheck Protection Program EZ Loan Forgiveness Application Instructions (effective 2020-06-16).

Click here to view the simpler loan forgiveness application (effective 2020-10-07).

Click here to view the instructions for completing the simpler loan forgiveness application (effective 2020-10-07).

Click here to view the Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less (effective 2020-10-07).

Who Can Apply?

The following entities affected by Coronavirus (COVID-19) may be eligible:

  • Any small business concern that meets SBA’s size standards (either the industry based size standard or the alternative size standard)
  • Sole proprietors, independent contractors, and self-employed persons
  • Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
    • 500 employees, or
    • That meets the SBA industry size standard if more than 500

List of Cuero-Area Lenders

Note: This information is provided for convenience only and may be amended at any time. Please contact the individual lender for full details about PPP lending availability and terms.

  • Cuero National Bank
    361-277-3100
    Call for more information.
  • Prosperity Bank
    361-564-2291
    PPP offered to current members. Call for more information and to request an email packet.
  • TDECU
    Erika Plummer, Member Center Manager
    D: 361-580-9748, T: 800-839-1154 ext 9748
    eplummer@tdecu.org
    PPP offered to current members and non-members. Also offering two months of loan extensions to anyone that has a current loan with them, low interest rates, and assistance loans up to $4,000. Call for more information.
  • TrustTexas Bank
    361-275-2345
    PPP offered to current members. Call for more information.
  • Wells Fargo Bank
    PPP offered to current members only with well-established business account in place before February 1, 2020. Visit their PPP info page.

See also:
List of participating PPP lenders by state (as of May 14, 2020)
Find Eligible PPP Lenders

Learn more about the PPP on the SBA website, here….

Economic Injury Disaster Loan

This loan will provide economic relief to small businesses and non-profit organizations that are currently experiencing a temporary loss of revenue.

Notice: Now Accepting New Applications for Economic Injury Disaster Loans (EIDL)

Overview

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories were able to apply for an Economic Injury Disaster Loan. The EIDL is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation to health care benefits, rent, utilities, and fixed debt payments.

On June 15, SBA resumed accepting new Economic Injury Disaster Loan (EIDL) applications from all qualified small businesses, including agricultural businesses, and non-profit organizations.

If you have already applied via the streamlined application portal, please do not resubmit your application.

Note: If you would like to check the status of your EIDL application, contact the SBA Customer Service Center at 1-800-659-2955 (TTY: 1-800-877-8339 or by e-mail at disastercustomerservice@sba.gov. You may also contact the SBA San Antonio District Office for assistance. EIDL Advances will be direct-deposited upon approval without prior notification.

EIDL Advance Discontinued

Note: All available funds for the EIDL Advance program have been allocated. By law, SBA is not able to issue EIDL Advances once program funding has been obligated and is no longer available. EIDL loan applications will still be processed even though the Advance is no longer available.

Information on how the EIDL Advance worked
The amount of the EIDL Advance was determined by the number of employees indicated on the EIDL application at $1,000 per employee, up to a maximum of $10,000. The EIDL Advance does not have to be repaid. Recipients did not have to be approved for an EIDL loan in order to receive the EIDL Advance, but the amount of the loan advance is be deducted from total loan eligibility.

Agricultural Businesses

The new eligibility for agricultural businesses with 500 or fewer employees is made possible as a result of additional authority and funding appropriated by Congress in response to the COVID-19 pandemic.

Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).

Qualified small businesses, including agricultural businesses, and non-profit organizations may apply for the Economic Injury Disaster Loan (EIDL) here.

SBA Express Bridge Loans

Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for a decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.

Terms:

  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan

Find an Express Bridge Loan Lender by connecting with your local SBA District Office (see also below).

Area SBA District Offices

San Antonio District Office (75.8 miles from Cuero, Texas)
SBA District Office
615 E Houston St. Suite 298
San Antonio, TX 78205
Phone: 210-403-5900
Fax: 210-403-5936
https://www.sba.gov/offices/district/tx/san-antonio
sado.email@sba.gov

Lower Rio Grande Valley District Office – Corpus Christi Branch Office (94.6 miles from Cuero, Texas)
SBA District Office
2820 S. Padre Island Dr. Suite 108
Corpus Christi, TX 78415
Phone: 361-879-0017
Fax: 361-879-0764
https://www.sba.gov/offices/district/tx/harlingen

Houston District Office (113.5 miles from Cuero, Texas)
SBA District Office
8701 S. Gessner Drive Suite 1200
Houston, TX 77074
Phone: 713-773-6500
Fax: 713-773-6550
https://www.sba.gov/offices/district/tx/houston
Houston@sba.gov

SBA Debt Relief

Overview

As part of SBA’s debt relief efforts,

  • The SBA will pay 6 months of principal, interest, and fees of current 7(a), 504, and Microloans in regular servicing status.
  • The SBA will also pay principal, interest, and fees of new 7(a), 504, and Microloans disbursed prior to September 27, 2020.

This relief is not available for Paycheck Protection Program loans or Economic Injury Disaster loans. Borrowers do not need to apply for this assistance. It will be automatically provided as follows:

  • For loans not on deferment, SBA will begin making payments with the next payment due on the loan and will make six monthly payments.
  • For loans currently on deferment, SBA will begin making payments with the next payment due after the deferment period has ended, and will make six monthly payments.
  • For loans made after March 27, 2020 and fully disbursed prior to September 27, 2020, SBA will begin making payments with the first payment due on the loan and will make six monthly payments.

SBA has notified 7(a), 504 and Microloan Lenders that it will pay these borrower loan payments. Lenders have been instructed to refrain from collecting loan payments from borrowers. If a borrower’s payment was collected after March 27, 2020, lenders were instructed to inform the borrower that they have the option of having the loan payment returned by the lender or applying the loan payment to further reduce the loan balance after SBA’s payment.

Borrowers should contact their lender if they have any questions regarding this payment relief.

Additional Debt Relief

For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.

What does an “automatic deferral” mean to borrowers?

  • Interest will continue to accrue on the loan.
  • 1201 monthly payment notices will continue to be mailed out which will reflect the loan is deferred and no payment is due.
  • The deferment will NOT cancel any established Pre-authorized Debit (PAD) or recurring payments on your loan. Borrowers that have established a PAD through Pay.Gov or an OnLine Bill Pay Service are responsible for canceling these recurring payments. Borrowers that had SBA establish a PAD through Pay.gov will have to contact their SBA servicing office to cancel the PAD.
  • Borrowers preferring to continue making regular payments during the deferment period may continue remitting payments during the deferment period. SBA will apply those payments normally as if there was no deferment.
  • After this automatic deferment period, borrowers will be required to resume making regular principal and interest payments. Borrowers that cancelled recurring payments will need to reestablish the recurring payment.

If you have questions about your current loan and whether or not your loan is automatically deferred, please contact your Loan Servicing Office directly using the following information:

  • Birmingham Disaster Loan Servicing Center:
    Phone: 800-736-6048
    Email: BirminghamDLSC@sba.gov
  • El Paso Disaster Loan Servicing Center:
    Phone: 800-487-6019
    Email: ElPasoDLSC@sba.gov