UPDATED April 27, 2020

SBA Loan Program Information for Small Businesses

The Small Business Loan Administration (SBA) received additional funding to release to
banks for the Payroll Protection Program (PPP).
Eligibility is determined by the SBA. Please visit the following website for complete details: 
The Victory Bank is accepting applications and ready to help you through this process.
Please call us at 610-948-9000 for information.

Paycheck Protection (PPP)
SBA – Economic Injury Disaster Loans (EIDL)
PA COVID-19 Working Capital Access Program (CWCA)
SBA Bridge Pilot Program
Small Business Debt Relief Program

Paycheck Protection (PPP)

  • Businesses with up to 500 employees are eligible for loans up to $10 million
  • The covered period is from February 15, 2020 through June 30, 2020, but loans are available until
    December 31, 2020
  • Provides a 100% guarantee for SBA lenders on loans provided through December 31, 2020
  • Eligible use of funds include payroll, employee salaries, paid sick leave, insurance premiums, normal mortgage payments, rent, and utilities.
    - Borrower is eligible for loan forgiveness up to the amount spent during the eight (8) week period after receipt of         loan proceeds on payroll costs during covered period beginnig February 15, 2020
    - Interest on any mortgages that were in place prior to February 15, 2020
    - Payment of rent on any lease that was in place prior to February 15, 2020, and any utilities thatwere in place
       prior to February 15, 2020
  • Borrower must certify they will use the funds appropriately and won’t take a loan from another program for
    the same purpose
  • Grants all SBA lenders ability to approve the PPP loans under temporary Preferred Lender Program status
  • Waives borrower and lender fees
  • Waives collateral and personal guaranty requirements
  • Outlines treatment of any portion of loan not used for debt forgiveness purposes; any remaining balance on the loan will have a maturity of not more than two (2) years and will be guaranteed at 100% for the term of the loan
  • Maximum interest rate is 1%
  • No prepayment fees are allowed
  • Allows for complete deferment of payments for at least six (6) months
  • Amounts forgiven may not exceed principal amount of the loan
  • Eligible payroll costs do not include compensation above $100,000 in wages, i.e., compensation up to a rate of $100m/annually would be eligible. Forgiveness of a covered loan is equal to the sum of the payroll costs incurred during the covered eight (8) week period compared to the previous year or time period, proportionate to maintaining employees and wages
  • Allows forgiveness for additional wages paid to tipped employees
  • Borrowers will be required to verify their payments made during the covered period through documentation provided to lenders
  • Cancelled indebtedness resulting from the forgiveness will not be included in the borrower’s taxable income

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SBA – Economic Injury Disaster Loans (EIDL)

  • Application, approval and underwriting are done directly by the SBA
  • Apply at https://disasterloan.sba.gov/ela/Account/Login
  • 3.75% fixed interest rate for working capital loan to Small Businesses for issues related to COVID-19.
    2.75% fixed rate for non-profits
  • January 31, 2020 to December 31, 2020 covered period
  • Eligibility for small businesses and non-profits as determined by the SBA. Borrower must have suffered substantial economic injury from COVID-19
  • Up to $2,000,000 – proceeds can be used for to pay fixed debt payments, payroll, accounts payable, rent, utilities and other expenses that cannot be paid due to COVID-19
  • Up to 30 year term/amortization
  • Collateral and guarantees are required
  • Under the EIDL program, applicant may request an emergency $10,000 grant to cover eligible expenses within
    three (3) days of applying for the loan. Grant does not have to be repaid if borrower is not approved for EIDL loan. Go directly to sba.gov to apply for the emergency grant. Look for the yellow bar across the top of the home page marked, “Coronavirus (COVID-19): Apply for an Economic Injury Disaster Loan CLICK HERE

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PA COVID-19 Working Capital Access Program (CWCA)

  • $61MM total loan fund
  • State administers application. Apply at local Certified Development Organization (county based)
  • Small Businesses with fewer than 100 employees
  • 100% of working capital costs incurred in the last three (3) months for most businesses (including debt service, excluding fixed assets.) Businesses in the retail/service sector can include working capital costs that were incurred in the last six (6) months, however only 50% of those costs will be eligible which calculates to three (3) months
    of business expenses
  • Projected or future costs are not eligible
  • Loan amount is the lesser of three (3) months of working capital or $100,000
  • Three (3) year term with 12 year amortization
  • Up to $500 commitment fee plus costs
  • No payments for the first 12 months, followed by principal payments in years 2 & 3, with balloon payment
    at the end of year 3
  • Collateral will be all business assets
  • Guarantees required

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SBA Express Bridge Pilot Program

  • Applications, underwriting, approval and funding provided by Bank approved Express lender
  • Standard Express underwriting and structure guidelines. Collateral and guarantees required
  • Documented impact of COVID-19 upon borrower
  • Maximum loan amount is $25,000
  • Standard 50% SBA guarantee
  • Must be structured as a term loan with a maximum seven (7) year term
  • Proceeds must be used for the survival or re-opening of the business
  • Interest rate is up to 6.50% above the Prime rate
  • Standard fees, including SBA Guarantee fee apply 

Small Business Debt Relief Program

  • 7a loans not made under the PPP, 504 loans and microloans are eligible.
    EIDL loans are not eligible
  • SBA will cover six (6) months of principal and interest for eligible loans

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