Loans & Funding

Loan & Funding Options

The Small Business Association of Michigan is committed to helping business owners navigate the very complex and very fluid issues regarding the COVID-19 crisis. These FAQs are meant to serve as a guide. Please consult your attorney, accountant or HR professional.

Members can also utilize the SBAM Ask An Expert hotline or simply email for assistance. 

CARES Act Webinar presented by Maner Costerian

(Recorded March 31, 2020)
Webinar Recording | Slides

Loans, Grants & Financial Information

CARES Act: Payroll Protection Program

The Payroll Protection Program goes live April 3, 2020.

Small businesses and eligible nonprofit organizations, Veterans organizations, and tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

The application for borrowers can be found HERE (Please note that is processed through your local SBA lender. We recommend checking with your current financial institution first.

For a top-line overview of the program CLICK HERE

If you’re a borrower, more information can be found HERE

More PPP Details

Click here to access the Small Business Owner's Guide to the CARES Act, which includes details on the PPP and more. 

The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by directing $349 billion towards job retention and business operating expenses.  

Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

Under this program:

  • Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
  • Loan payments will be deferred for six months.
  • If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.

Program Overview

The Paycheck Protection Program is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $10 million for payroll and certain other expenses. 

If all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities. Up to 100 percent of the loan is forgivable.


Businesses – including eligible non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors described in the Small Business Act – with 500 or fewer employees may apply.

Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.

SBA Economic Injury Disaster Loans

How do I apply for the SBA Economic Injury Disaster Loan?

Click here to apply for the loan. Please view this SBA Disaster Loan Fact Sheet for more information.

SBA Economic Injury Disaster Assistance Loans in Response to the Coronavirus

  • The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). These SBA makes loans are available to small businesses and private, non-profit organizations territory to help alleviate economic injury caused by the Coronavirus (COVID-19).

  • SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

  • These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.

  • SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

  • For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail​

Loan Advance - Economic Injury Disaster Loan Advance

The CARES Act allows for a $10,000 EIDL Loan Advance.  The option is at the end of your on-line EIDL Application.  Click the box at the end of your EIDL application if you wish to receive the $10,000 advance.  If you have applied for an EIDL loan prior to Noon on Monday, March 30 you will need to re-apply for your EIDL.

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.  Additional information in the EIDL Advance/Grant can be found in the CARES Act information below.

Economic Injury Disaster Loans are available to residents in declared disaster areas, Michigan is a declared disaster area.

Federal and State Financial Relief for Small Businesses

On Wednesday, March 25, 2020 and on March 27, 2020, the U.S. Senate and the House of Representatives passed the Coronavirus Aid, Relief and Economic Security (CARES) Act and the President just signed it into law. The CARES Act creates several new Federal Small Business Administration (SBA) loan programs or amendments to existing programs that could assist businesses that have been impacted by the COVID-19 pandemic with their day-to-day operating expenses.    

CARES Act Loans

The CARES Act also creates an SBA loan program offering forgivable loans of up to $10 million to any “business concern,” including independent contractors and sole proprietors, with 500 or fewer employees, (or a greater number of employees if a greater number has been established by SBA size standards for the industry in which the business operates). The actual amount of the loan is the lesser of $10 million or the average monthly payroll for the business multiplied by 2.5. The loan is 100% SBA backed. The loan can be used for payroll, group health, mortgages, rent, debt service and utilities. These loans will not require security or a guarantee, will not require that an applicant be unable to obtain financial assistance elsewhere and the SBA is waiving all fees related to applying for such loans. Interest rates are proposed to be no more than 4%. The loan period begins February 15, 2020 and ends June 30, 2020.

It is anticipated that these loans will be issued by SBA approved lenders (i.e., banks). Lenders will be able to defer payments on the principal and interest of the loan for a minimum of six months and up to one year. In addition, the loans are forgivable in an amount up to the amount paid by the business for payroll, rent, utilities and mortgage interest during the eight weeks after origination of the loan. The amount forgiven will be reduced by a formula related to layoffs or salary or wage reductions during the eight-week period after origination of the loan. A borrower is able to avoid this reduction by rehiring employees and eliminating the reduction in salary. It is proposed that lenders will be reimbursed by SBA for making these loans: 5% for loans up to $350,000; 3% for loans over $350,000 and less than $2 million; and 1% for loans $2 million and over. The SBA has stated it plans to release guidance related to the loans approximately 48-72 hours after the President signs the bill into law, though it has indicated that it will just be using its standard Section 7(a) forms, albeit slightly modified for this situation. Application information and other materials may be made available by the SBA prior to that through its COVID-19 website. We are hoping the SBA’s guidance will include whether religious organizations are eligible for the loans. 

The CARES Act is also offering grants to small business development centers and women’s business centers. These grants are intended to provide education and training to small businesses. 

Potential borrowers under the CARES Act should confirm such borrowing with existing lenders to be certain that the CARES Act loan does not violate a covenant of existing loan agreements.

Express Loans

The CARES Act increases the maximum amount for a SBA Express Loan from $350,000 to $1 million through December 31, 2020.

Source: Warner Norcross & Judd

Summary of the Grants

The Emergency Economic Injury Grants are just a piece of the Economic Injury Disaster Loans to get money up front for business owners with cash-flow issues. Done at the same time you apply for your EIDL.

“Includes $10 billion in funding to provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.”

The EIDL grant does not need to be repaid, even if the grantee is subsequently denied an EIDL. It may be used to provide paid sick leave to employees, maintain payroll, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments. Eligible grant recipients must have been in operation on January 31, 2020. The grant is available to small businesses, private nonprofits, sole proprietors and independent contractors, tribal businesses, as well as cooperatives and employee-owned businesses.

A business that receives an EIDL between January 31, 2020 and June 30, 2020, as a result of a COVID-19 disaster declaration, is eligible to apply for a PPP loan, or the business may refinance their EIDL into a PPP loan. In either case, the emergency EIDL grant award of up to $10,000 would be subtracted from the amount forgiven in the payroll protection plan.

Who is eligible for an Emergency Economic Injury Grant Advance?

Those eligible for an EIDL and who have been in operation since January 31, 2020, when the public health crisis was announced.

How long are Emergency Economic Injury Grant Advances available?

January 31, 2020 – December 31, 2020. The grants are backdated to January 31, 2020 to allow those who have already applied for EIDLs to be eligible to also receive a grant.

What other sources of funding may be available?

SBA Debt Relief

The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis.

Under this program:

  • The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
  • The SBA will pay the principal and interest of current 7(a) loans for a period of six months.

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 with less paperwork. 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 loans 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 decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.


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


Michigan Small Business Relief Program grants

Are any grants available for small business?

The Michigan Small Business Relief Program authorizes the MEDC provide up to $20 million in support for small businesses. The funding is divided between $10 million in small business grants and $10 million in small business loans to support businesses facing drastic reductions in cash flow and the continued support of their workforce.

The $10 million in grant funding will be provided to local or nonprofit economic development organizations throughout the state to provide grants up to $10,000 each to support certain small businesses that have realized a significant financial hardship as a result of the COVID-19 virus.

Now Available! Apply for the Michigan Small Business Relief Program

The Michigan Small Business Relief Program grants are administered by 15 local and nonprofit economic development organizations (EDOs). To apply, visit this website and then find the EDO below that represents the county in which your business is located. There is a deadline to apply and it varies among county, so apply as soon as possible!