The Small Business Interruption Loans (SBIL) The CARES Act

It is hard to know the effects recent events will have on your business. It is important as an owner to consider all available options to sustain your business in the short and long term.  There are key provisions of the proposed Coronavirus Aid, Relief, and Economic Security Act or CARES ACT that may provide that needed financial assistance. Within the Act, the Small Business Interruption Loan (SBIL) will piggyback off of the disaster loan assistance program that is currently in place. Please note that the language of the act is proposed legislation and continues to develop. As of March 21, 2020, the drats language states:

Who Qualifies

  • For-profit Business
  • Private/Public Non-profit
  • Businesses with less than 500 employee


Loan Terms

  • Formula based on average total monthly payments during the prior year for payroll, mortgage, rents and other liabilities multiplied by 4
  • Maximum loan is a lessor of the above or $10,000,000
  • Repayment up to 30 years
  • May qualify for loan forgiveness
  • Forgiveness = cost of maintaining payroll 3/1/20-6/30/20
  • The formula is driven based on several metrics
  • Will require documentation
  • Wage limits apply
  • Any forgiveness is not taxable


Application Process

  • Step 1 – Apply for the loan
  • Step 2 – Property verified and Loan Processing Decision Made
  • Step 3 – Loan Closed and Funds Disbursed


Information Needed

  • Personal Information such as name, address, email, etc.
  • Social Security numbers or EIN of applicants
  • Financial Information
  • Disaster Request for Transcript of Tax Return (Form 4506-T) business and personal
  • Complete copies of the most recent Federal income return or financial statements
  • Personal Financial Statement (Form 413) for each principal owning 20% or more and each general partner or managing member
  • Schedule of Liabilities (Form 2202)
  • Additional information may be requested; the applicant has 7 days to submit. Examples of such additional information are:
  • Completed information for affiliated businesses
  • 2019 financial statements and current year to date financial statements
  • Monthly income and expenses (Form 1368)

The situation is very fluid and information is being made available constantly. We will do our best to keep our clients informed during these challenging times. Please feel free to reach out to us directly or contact us at [email protected].

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