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Small Business Boost Qualifications

Recently, small businesses have been hit hard by mandatory closures and safety measures required to slow the spread of COVID-19. Qualified small businesses may be eligible to receive SBB recoverable assistance to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of impacts from the COVID-19 pandemic. SBB funds may also be used in financing the startup or expansion of a small business, including:

  • Permanent working capital
  • Building purchase
  • Land acquisition and construction
  • Facility expansion
  • Machinery and equipment purchase
  • Leasehold improvements
  • Closing costs

After enrollment, approved members may register a business for SBB funding. Each transaction must meet the following guidelines:

  • Borrower must be qualified as a small business based on Small Business Administration standards
  • The member must provide at least 40 percent of total financing to the small business. Extending or modifying existing member debt may be used to meet this requirement. The member is not required to advance additional loan funds to the small business
  • The maximum SBB loan amount is $100,000 or 50 percent of the member loan to the small business
  • At least one job must be created or retained for every $50,000 in SBB funding
  • Member must demonstrate loan does not meet their underwriting criteria without the SBB funds
  • Businesses may obtain only one SBB loan
  • If deal involves real estate, at least 51 percent of the real estate must be occupied by the small business

Small Business Boost Loan Terms

The loan term for non-real estate transactions can extend up to seven years and be amortized up to 10 years. If financing of real estate is greater than 50 percent of the project costs, the SBB loan term will be the lesser of 10 years or the member loan term. The amortization of program funds has a limit of 15 years for transactions involving real estate.
 

2020 Small Business Boost Program Manual

See the 2020 Small Business Boost Program Manual for full program details.