SBA Cares Act COVID-19 Loans and Relief Assistance

COVID-19 Loans Cares Act Relief

COVID-19 Loans Cares Act Relief

At US Fund Source, our mission is to find solutions for small business owners, fast. We are here to provide resources for small business owners as well as direct solutions during this challenging time. With the passing of the CARES Act, the SBA has established a new online process where you can quickly and efficiently apply for COVID-19 (7b) Economic Injury Disaster Loans.

Our Team is here to provide you with short term solutions as well as long term options to help you maintain cash flow, weather the storm, and come out on top of this pandemic. US Fund Source Business Consultants are working remotely with a small staff taking shifts in the office to provide its past, current, and future clients with lending instruments as well as advice during these difficult times.

The SBA has changed its application process, and it’s now quicker and easier to get the assistance your business needs. You can apply for up to $5 million in financing with up to a 30-year term. The sooner an application is submitted, the higher the chance of approval based on allocated funds derived from the governments’ stimulus package. 

COVID-19 has made a significant impact on businesses nationwide. In response to the pandemic, state and federal officials have created loans and grants to residents and businesses to help assist. The SBA has two loan programs, the 7(a) Paycheck Protection Program and 7(b) Economic Injury Disaster Loan (EIDL), available to eligible businesses affected by COVID-19.

As the pandemic continues, it’s hard to follow changing state and federal regulations and keep your business afloat. US Fund Source is continuing to create new resources to help you stay up-to-date and keep your business going.

With COVID -19 growing by the minute affecting millions of people and companies throughout the country, US Fund Source has also developed and been providing business owners with short term solutions as well. The purpose is to provide business owners with access to capital that they need immediately to keep their business running. For companies that do not qualify or do not want to take out any additional loans, there are other financing relief options available during these tough times. Invoice Factoring, Business Credit Lines, Unsecured Term Loans, and Working Capital Products are still available.

With the economic impact the country is facing, some businesses and organizations are pitching in to help small business owners through this pandemic.


US Fund Source’s COVID-19 Business Resource Application includes:

  • SBA Loan guidance and tips
  • Economic Injury Disaster Loan Information
  • Resources and guides to help navigate COVID-19 
  • Updated news on federal regulations
  • Private funds and financing information available to small businesses
  • SBA Paycheck Protection Program Updates and Information


SBA (7b) Economic Injury Disaster Loan (EIDL)

Loan Overview:

The 7(b) loans provide up to $2 million in assistance with an interest rate of 3.75% for-profit companies and an interest rate of 2.75% for non-profits. The loan terms range up to 30 years, and there are no upfront fees or early payment penalties.

Loan information:

    • Payments start 12 months after the date of the contract
    • Funds can be used to business expenses such as pay sick leave for employees who are unable to work due to a direct effect of COVID-19, payroll, materials, rent or mortgage payments, repaying outstanding obligations

Eligibility requirements:

Any business that is affected by COVID-19 that has less than 500 employees and was in operation before February 1, 2020, is eligible to apply.

Those interested in applying must apply before December 31, 2020

Emergency Advance up to $10,000

Advance information:

  • There is no requirement to repay the advance even if your business happens to get denied for the 7(b) loan
  • Funds can be used to pay business expenses such as pay sick leave for employees who are unable to work due to a direct effect of COVID-19, payroll, materials, rent or mortgage payments, repaying outstanding obligations

Eligibility requirements:

An eligible small business must apply for the 7(b) loan to request the Emergency Advance of up to $10,000

Those interested in applying must apply before December 31, 2020


SBA (7a) Paycheck Protection Program

This is your typical SBA loan, which assists small businesses in covering operating expenses. A company can use 7(a) loan proceeds to pay-off a 7(b) Disaster loan. Please note, a company can have both a 7(a) and 7(b) loan at the same time.

Loan Overview:

  • The PPP provides small businesses with funds to pay up to 8 weeks of payroll costs, including benefits. You can also utilize the funds to pay interest on mortgages, rent, and utilities.
    • Payroll costs become capped at $100,000 on an annualized basis for each employee
  • Small businesses with 500 or fewer employees—including non-profits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—are eligible to apply. Businesses with more than 500 employees qualify in specific industries.
  • A business can apply for a loan of 2.5 average monthly payroll costs up to $10million
  • Term up to 2 years
  • Interest Rate: 0.5%
  • Loan payments can be deferred for up to six months
  • No personal guarantee or collateral is required
  • Neither the government nor lenders will charge small businesses any fees
  • An eligible business must apply before June 30, 2020
  • A business is eligible to apply even if the small business is applying to other relief programs
  • No prepayment penalties or fees

A7(a) loan forgiveness:

    • Funds are provided in the form of loans that will be fully forgiven when used for purposes deemed appropriate by the SBA (Due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Forgiveness is based on the employer maintaining or quickly re-hiring employees and maintaining salary levels. Forgiveness will reduce if full-time headcount declines, or if salaries and wages decrease
    • Loan forgiveness can reduce if:
      • Number of Staff: Your loan forgiveness will reduce if you decrease your full-time employee headcount
      • Level of Payroll: Your loan forgiveness will also reduce if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019
      • Re-Hiring: You have until June 30, 2020, to restore your full-time employment and salary levels for any changes made between February 15, 2020, and April 26, 2020
    • To request loan forgiveness:
      • A small business can submit a forgiveness request to its lender that is servicing the loan
      • The request should include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on an eligible mortgage, lease, and utility obligations
      • Certification that the documents are true and that the business used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments
      • The lender must decide on forgiveness within 60 days

Application Process:

      • Starting April 3, 2020, small businesses and sole proprietorships can start applying. Starting April 10, 2020, independent contractors and self-employed individuals can apply. There is a funding cap, so it is in the small businesses’ best interest to apply as quickly as possible.
      • A small business can apply through any existing SBA 7(a) lender or any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Additional lenders should be available shortly to assist in making the loans. A small business should consult with its local lender to see whether or not that lender enrolled in the program.
      • Aside from the application, a small business will need to provide its lender with payroll documentation

US Fund Source understands that one of the biggest obstacles for a small business is to access the capital necessary to grow or expand. Our unsecured working capital programs provide funding for small businesses at terms that make sense in correlation with the companies success. We offer unsecured business funding up to $5,000,000 with minimal documentation required. Funds can be transferred via wire to your business account within 24 hours. These products are unsecured, and we do not need any assets provided as collateral.

Contact us or apply today for an unsecured working capital loan or unsecured business lines of credit and watch your business grow! As soon as you fill out or, one of our loan consultants will take over and do the work for you so that you are left to run your business. Terms are presented shortly after, and if accepted, funded the same day via electronic documentation! It is that easy.

Business Needs Arising From COVID-19


  • Working capital to cover unexpected costs due to economic changes in the company or loss of revenue
  • Payroll to be able to pay employees even if they had to pause work due to the business closing from state regulations as well as employees working remotely. We recommend reading about the new Coronavirus Emergency Aid Package to see if your company meets the requirements
  • An increase in equipment is particularly true for many healthcare providers, including hospitals and urgent care facilities.
  • Workforce capacity is another considerable need for a few companies. Some industries are facing higher demands of products and services due to the pandemic and therefore need more staff to be able to meet the high requirements. Pharmacies, supermarkets, and health care providers are the most impacted industries.
  • Inventory and supply chain has also impacted a lot of companies. Supermarkets, hospitals, among many other businesses, are on a race to get their hands on new inventory to meet client needs.


Common Uses of Your Paycheck Protection Program Loan –


  • Payroll costs and employee compensations
  • Insurance premiums and group healthcare benefits
  • Mortgage interest payments
  • Commercial Rent / Utility Expense / Building Operational Expense / CAM Charges
  • Interest on any other debt obligations incurred before the covered period


Need additional funding with your SBA Loan, 7(a) Paycheck Protection Program, or 7(b) Economic Injury Disaster Loan (EIDL)?  Contact US Fund Source and learn more about getting your small business the capital it needs in your account today. Applying is a hassle-free no-obligation process that will not impact your credit. We use an Experian Vantage 8 Score, which is a Soft Pull and is not reflected and or seen as an inquiry.

Have Questions?

How quickly can I get my funds?

Once approved, the process is quick and straightforward. Approvals typically take 5 minutes to 24 hours. Your funds are then transferred into your account via wire or ach within 4 hours M-F 9:00 AM EST – 7:00 PM EST.

Is my business eligible?

Our minimum requirements are:

  • 3+ months in business
  • $5,000 monthly revenue or $60,000 annually
  • 500+ FICO score

To see if your business is eligible for funding, contact one of our expert Business Advisors at (855) 369-9269.

Which documents are required to complete your loan application?

Most loan options require three months of bank statements to review your business’s revenue data. You can upload your financial information directly or securely connect your business bank account.

Will exploring my loan options impact my credit score?

No. In order to make a credit decision we do a “soft pull”, which is a simple credit inquiry for pre-approval that won’t have any impact on your credit score. Specifically it is called a Vantage 8 Score from Experian.

How long is the financing period?

With a variety of lending options, financing terms can range from 3 months to 25 years.

Can I pay off my financing early?

Yes. Loan options can be paid off ahead of time without any additional fees or pre-payment penalties. As a matter of fact, most of our lending options have prepayment discounts attached!

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