As PPP loan forgiveness applications are being prepared by companies across the country, Congress is working on a stimulus package rumored to include provisions that reverse the IRS ruling that expenses paid with forgiven PPP funds will not be eligible for a 2020 tax year deduction. While we’re hopeful that comes to pass, we should be prepared if in fact, these amounts remain non-deductible. To that end, contractors should be aware of accounting issues unique to their industry relating to non-deductible PPP loan forgiveness.

Under IRC Section 460, “small” contractors (under $26 million) have a few options on the accounting method they can use for long-term contracts. One such popular method is the completed contract method, which allows contractors to defer reporting profit—revenue and expenses—until the year in which the job is completed. While this method can produce an attractive income deferral, in 2020 it comes with a caveat. If PPP funded compensation and other expenses remain non-deductible, contractors don’t have to concern themselves with that portion of the costs for jobs completed in 2021 until 2021.

Contractors can also choose to employ the percentage-of-completion accounting method. This method recognizes job profit based on how far a job has progressed at the end of a tax year. All “large” contractors are required to use this method. The percentage of the job costs that have been incurred to date is applied to the total contract price to determine how much revenue must be recognized on that job. However, if these jobs have PPP funded costs that are non-deductible, they should be excluded from the computation, thereby reducing the percentage-of-completion of the job and the amount of revenue to be recognized in the tax year.

Both methods could result in tax deferrals unique to contractors. Understanding how these costs interact with your method of accounting is paramount to ensuring your company is paying the least amount of tax in the event Congress does not overturn the IRS ruling. It will be imperative for contractors not only to document that their PPP expenses were used on allowable costs but also to track them back to the jobs on which they were incurred. HBK Construction Solutions can help you ensure you are documenting and job-costing your costs correctly to be certain you can take advantage of these deferrals and evaluate the various available accounting methods to ensure you maximize the cash retained by your business.

On November 18, the Department of Treasury and IRS released long-anticipated guidance regarding the tax treatment of expenses used to support Paycheck Protection Program (PPP) loan forgiveness. IRS Notice 2020-32, released earlier this year, stated that expenses are not deductible if the payment of that expense results in forgiveness. While some Congressional leaders have proposed that the IRS notice was not consistent with legislators’ intent, no Congressional action has been taken to date that would overturn the IRS notice. Further, little additional guidance was released for borrowers and taxpayers. This week’s guidance now offers some clarity. The revenue ruling (2020-27) and revenue procedure (2020-51) explain that businesses “may not deduct those expenses in the taxable year in which the expenses were paid or incurred if, at the end of such taxable year, the taxpayer reasonably expects to receive forgiveness of the covered loan on the basis of the expenses it paid or accrued during the covered period, even if the taxpayer has not submitted an application for forgiveness of the covered loan by the end of such taxable year.” The guidance means that PPP loan borrowers expecting forgiveness cannot deduct the expenses generating forgiveness in the taxable year the expenses occurred. The deductibility of these expenses is not dependent on the borrower submitting a forgiveness application nor on the borrower receiving forgiveness. It is only dependent on whether the borrower “reasonably expects to receive forgiveness.” If a borrower reasonably expects forgiveness and does not deduct the expenses, and it is later determined that their loan is not forgiven, the expenses may be deducted on their original or amended 2020 tax return or their original 2021 return. PPP loan guidance continues to evolve. For questions about your PPP loan, forgiveness, or the newest IRS and Treasury guidance, please reach out to your HBK Advisor.

Borrowers of Paycheck Protection Program (PPP) loans have begun working through their forgiveness applications and are learning that the process is quite complex. While applying for forgiveness is different for each borrower, here are five issues that have surfaced as common concerns and that may affect the amount of forgiveness you receive:

1. Different inputs can equal different outputs.

Application instructions include a variety of options, including several eligible costs, different reference periods, several safe harbor options, and different methods of calculations. Your amount of forgiveness will vary depending on the options you use.

• If you complete the application and are not pleased with your projected level of forgiveness, make sure you have considered all your options. For example, did you consider the different reference periods used to determine the FTE Reduction Quotient? Have you compared both the standard and the simplified methods in calculating the FTE count? Have you considered all safe harbor options for the FTE reduction and average annual salary/hourly wage reduction?

2. Coordination with the EIDL advance.

If you received an Economic Injury Disaster Loan (EIDL) Emergency Advance or Emergency Grant (EIDLG), your PPP loan forgiveness will be reduced by the amount of your advance or grant. You must include the advance or grant amount as well as the EIDL application number on your PPP loan forgiveness application.

• Be sure that you include only the EIDL advance or grant amount on the EIDL advance amount line, not the entire EIDL amount. Note that EIDL Advance amounts will not exceed $10,000.
• Do not reduce your projected forgiveness amounts listed on the forgiveness application by your advance or grant amounts. The SBA will reduce the forgiveness amount provided to your lender.

3. Eligible payroll costs.

Payroll costs eligible for forgiveness include employer contributions for employee health insurance.

• Include only the employer portion of the contribution as an eligible payroll cost. Employee contributions are already included in the employee’s gross payroll or cash compensation. As such, employers cannot rely on the totals indicated on your health insurance bills. Additional limitations apply if you are an owner of 2 percent or more of an S corporation as well as to those owners’ family members. For those individuals, employer contributions for health insurance are considered cash compensation.

4. Ratio of forgivable payroll and non-payroll costs.

The Paycheck Protection Program Flexibility Act of 2020 (PPPFA), passed by Congress on June 5, provides that no more than 40 percent of forgiveness can be attributed to non-payroll costs. You are required to certify this on the S application and show it as a calculation on line 10 of the Standard application or line 7 of the EZ application.

• Calculation: On line 10 of the Standard application and line 7 of the EZ application, follow the instruction to divide line 1 (eligible payroll costs) by .6. The calculation determines a potential amount of forgiveness if the payroll costs are reported equal to 60 percent of that forgiveness. This potential forgiveness amount will be compared with the PPP loan amount and the calculation including your FTE and annual salary/hourly wage reductions, where the lowest of the three will be used as the application’s forgiveness amount.

5. Ensure your data is easy to understand by the lender and the SBA.

Business owners understand their businesses better than anyone else. Even payroll reports can have quirks or customizations that they, their managers and employees find it easy to understand but that might not be clear to those reviewing your reports for loan forgiveness.

• Make the data as transparent as possible. While the SBA provides specific documentation requirements, maintaining and in some cases submitting clarifications, reconciliations and other data may make it easier for the lender and SBA to review their documentation—especially where prorations or limitations apply. Appeals processes are available but not guaranteed, so it is important to ensure your data and justification are clear in your initial submission.

Contact your HBK advisor with your PPP loan forgiveness application questions or concerns.

Paycheck Protection Program (PPP) loan borrowers need to think beyond applying for loan forgiveness to the tax ramifications associated with forgiveness, especially as the calendar year-end nears and tax issues are top of mind. According to the CARES Act, PPP loan funds are not taxable. However, in May the IRS issued notice 2020-32 making the expenses used to generate forgiveness taxable. Congress has expressed disappointment with the IRS position but has not yet passed legislation to overturn it. Many believe it will be addressed in the next round of stimulus legislation. However, several pieces of proposed PPP legislation do not address the IRS position, leaving the question of whether Congress fully intends to act on the IRS position. Several tax credits and deductions available to businesses, including the research and development (R&D) tax credit, work opportunity tax credit (WOTC), and qualified business income (QBI) deduction rely at least partially on employee wage calculations. Due to the IRS ruling, borrowers using wages to support PPP loan forgiveness could lose those tax credits and deductions. As such, they should carefully consider how they support forgiveness, including using costs other than gross payroll on their forgiveness applications. Unless Congress legislates otherwise, borrowers should prepare to pay taxes on PPP loan forgiveness expenses, including in their estimated payments and year-end tax planning. As program regulations disallow the use of PPP funds and many COVID-19 relief grants and loans to pay taxes, borrowers should consult their CPAs before dedicating any relief program funds to tax obligations. Borrowers also need to be vigilant about how their states will treat tax obligations relating to PPP loans. Many states have yet to declare a position on how PPP loans or the associated forgiveness expenses could be taxed. Borrowers should watch for guidance and be prepared to meet any tax obligations. To discuss your tax obligations with respect to your PPP loan and associated forgiveness, contact your HBK Advisor.

On October 8, 2020, the Small Business Administration (SBA), in conjunction with the Treasury Department, released a new application designed to simplify the Paycheck Protection Program (PPP) loan forgiveness process for some small borrowers.

SBA Form 3508S is intended for borrowers who received PPP loans of up to $50,000. However, if those borrowers and their affiliates received loans totaling at least $2 million, they are not eligible to use Form 3508S.

Form 3508S simplifies the forgiveness process by eliminating the FTE and wage/salary reduction calculations. In an Interim Final Rule also released on October 8, the SBA and Treasury explained that these exemptions are allowable as de minimis exceptions to the CARES Act. Specifically, the SBA believes that most borrowers in this dollar range would not be affected by these reductions because they did not have FTE or wage/salary reductions or they would otherwise qualify for the safe harbor options.

Borrowers who do not fall into the under-$50,000 range should continue to use Form 3508 or Form 3508EZ applications. They should also stay alert to possible changes to forgiveness requirements through future legislation.

To obtain the SBA copy of the simplified application, instructions and related Interim Final Rule, visit:

• Form 3508S: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S.pdf
• Form 3508S Instructions: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S-Instructions.pdf
• Interim Final Rule – Additional Revisions to Loan Forgiveness and Loan Review Procedures Interim Final Rules: https://home.treasury.gov/system/files/136/PPP–IFR–Additional-Revisions-Loan-Forgiveness-Loan-Review-Procedures-Interim-Final-Rules.pdf

For questions about PPP loan forgiveness or for support in completing the application documents, please contact your HBK Advisor.

On August 24, the Small Business Administration (SBA) released a new Interim Final Rule pertaining to owner compensation and non-payroll costs eligible for Paycheck Protection Program forgiveness. Highlights of the rule include:

• C-Corp or S-Corp owners with less than a 5 percent ownership stake are not subject to the owner-employee compensation rule. The SBA has made this rule because these owner-employees “have no meaningful ability to influence decisions over how loan proceeds are allocated”
• Non-payroll costs attributable to the business operations of a tenant or sub-tenant of a PPP loan borrower are not eligible for forgiveness. The SBA example: If a borrower leases its building for $10,000 per month and subleases a portion of its physical space to another business for $2,500 per month, only $7,500 per month is eligible for loan forgiveness—assuming other eligible rent criteria are met. The same applies to mortgage interest and utility payments.
• For home-based businesses, eligible non-payroll costs do not include household expenses. The SBA explains: “the borrower may include only the share of covered expenses that were deductible on the borrowers’ 2019 tax filings, or if a new business, the borrower’s expected 2020 tax filings.”
• Related party rent is eligible for loan forgiveness as long as:
  • “The amount of loan forgiveness for rent or lease payments to a related party is no more than the amount of mortgage interest owed on the property during the Covered Period that is attributable to the space being rented by the business, and
  • The lease and mortgage were entered into prior to February 15, 2020.”
  Note that any common ownership between the business and the property owner is considered related party.
• Mortgage interest payments to a related party are not eligible for loan forgiveness.

To read the full Interim Final Rule, visit https://home.treasury.gov/system/files/136/PPP–IFR–Treatment-Owners-Forgiveness-Certain-Nonpayroll-Costs.pdf.

For questions regarding your PPP loan forgiveness, please contact your HBK Advisor.

On August 4, the Small Business Administration (SBA) and U.S. Treasury published 23 FAQs addressing aspects of the Payroll Protection Program (PPP), including payroll costs, nonpayroll costs, forgiveness reductions and other general information. FAQ highlights include:

• Borrowers who submit their PPP loan forgiveness application within 10 months of the end of their “Covered Period” are not required to make payments until the forgiveness amount is remitted to the lender by the SBA. Borrowers receiving full forgiveness will not be responsible for any payments. A borrower receiving partial or no forgiveness will be required to pay the remaining balance of the loan, plus interest accrued from the loan disbursement date.
• Eligible payroll costs and eligible nonpayroll costs incurred before the Covered Period but paid during the Covered Period are eligible for loan forgiveness. Similarly, payroll costs and nonpayroll costs incurred during the Covered Period but paid after the Covered Period could also be eligible for forgiveness if they are paid on or before the business’s next regular payroll or billing date.
• Borrowers with twice monthly or less frequent payroll schedules might need to calculate payroll costs for partial pay periods to determine eligible payroll costs.
• The employer portion of group healthcare benefits paid or incurred during the Covered Period or “Alternative Payroll Covered Period” are eligible for forgiveness. Forgiveness will not be granted for group health benefits accelerated from periods outside the Covered Period or Alternative Payroll Covered Period.
• Employer contributions for retirement benefits paid or incurred during the Covered Period or Alternative Payroll Covered Period are eligible for forgiveness. Forgiveness will not be granted for retirement benefits accelerated from periods outside the Covered Period or Alternative Payroll Covered Period.
• Owner compensation is capped at $15,385 per owner for the 8-week period or $20,833 per owner for the 24-week period. The limitation applies across all businesses in which the owner has an ownership stake. Owners can choose how to allocate that amount across their businesses.
• Most rules applying to owner compensation were covered in the Interim Final Rule on Loan Forgiveness Interim Final Rule and SBA Loan Review Procedures Interim Final Rule dated June 22, 2020. However, the FAQs include an additional clarification: health insurance contributions for S Corporation owners with at least a 2 percent stake in the business are not eligible for forgiveness, nor are the contributions for family members. Instead, these amounts are considered part of the owners’ cash compensation.
• Interest on unsecured credit is not eligible for loan forgiveness, although it is a permissible use of PPP loan funds.
• If an eligible organization has a rent or interest payment for a mortgage loan that existed prior to February 15, 2020 but is renewed or refinanced after that date, the lease payments under the renewed lease or interest payments on the refinanced mortgage are eligible for forgiveness.
• Transportation, which is included as a utility eligible for forgiveness, is defined as ‘transportation utility fees assessed by state or local governments.” For more information on transportation utility fees, visit: https://www.fhwa.dot.gov/ipd/value_capture/defined/transportation_utility_fees.aspx
• Electricity supply charges are eligible for loan forgiveness. According to the FAQ, “The entire electricity bill is eligible for loan forgiveness, which may include supply charges, distribution charges, and other charges such as gross receipts taxes.”
• When considering the full-time equivalent (FTE) employee reduction related to forgiveness, borrowers may exclude reductions that occur due to, “(1) an inability to rehire individuals who were employees of the borrower on February 15, 2020 and (2) an inability to hire similarly qualified individuals for unfilled positions on or before December 31, 2020.” Within 30 days of the employee’s rejection of the offer to rehire, borrowers must inform the applicable state unemployment insurance office. In addition, borrowers must maintain documentation, which could include a written offer to rehire the individual, a written record of the employee’s rejection of that offer, and a written record of efforts to hire a similarly qualified individual.
• Seasonal employers should use the same 12-week period they used for calculating the maximum loan for the reference period for calculating any loan forgiveness reduction.
• When calculating the forgiveness reduction related to salary/hourly wages, borrowers should only consider decreases in salaries or wages (not all forms of compensation).

For questions regarding your PPP loan or its forgiveness or for support with your PPP forgiveness application, please contact your HBK Advisor.

July 21, 2020 UPDATE: The Federal Reserve announced that the Main Street Lending Program has been modified to allow participation from eligible nonprofit organizations including educational institutions, hospitals, and social service organizations. Eligible organizations must meet the following eligibility criteria:

• In operation at least 5 years
• Have at least 10 employees
• Have total non-donation revenues equal to or greater than 60% of expenses from 2017 through 2019
• Have 2% or more operating margin in 2019
• Have at least 60 days cash on hand
• Have a current debt repayment capacity of at least 55% measured by a ratio of cash, investments, and other resources to outstanding debt and certain other liabilities

  Learn more regarding the Main Street Lending Programs available to nonprofit organizations   Nonprofit organizations are among the organizations affected by the COVID-19 pandemic. While several relief programs are available through the federal government, determining when your organization is eligible for each program can be confusing, due to differing criteria. Here, we explore three loan programs offered through federal government programs or federal legislation due to the COVID-19 crisis and the eligibility of nonprofit organizations to apply. Economic Injury Disaster Loans The Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) is a program, administered through the SBA, that is available to eligible organizations suffering economic injury due to a declared disaster. Because COVID-19 is considered a declared disaster, these loans are available in all 50 states as well as Washington D.C., Guam, the Virgin Islands, Puerto Rico, the Northern Mariana Islands, and American Samoa. Loans awarded to nonprofit organizations are up to $2 million, carry a 2.75 percent interest rate, and are amortized over a period of up to 30 years. Payments are deferred for the first year. The following nonprofit organizations are eligible to apply:

• Private nonprofit organizations that are non-governmental agencies or entities that currently have an effective ruling letter from the IRS granting tax exemption under sections 501(c), (d), or (e) of the Internal Revenue Code of 1954,
• Private nonprofit organizations that have satisfactory evidence from the State that the non-revenue producing organization or entity is a non-profit one organized or doing business under State law, or
• Faith-based organizations. (For more information regarding faith-based organizations, please visit the SBA’s Faith-Based Organizations FAQs page).

  In addition to the loan, applicants may apply for an emergency advance (or emergency grant) of up to $10,000, based on the organization’s employee headcount. While this advance or grant awarded does not need to be repaid (even if the applicant declines the loan), it will reduce forgiveness on the Paycheck Protection Program loan, which is discussed further below. Currently, the EIDL program is only accepting new applications from agricultural enterprises due to funding limitations. It is unknown whether additional applications from other organizations, including nonprofit organizations, will be accepted in the future. Organizations who already applied for this program may check on the status of their application by contacting the SBA’s Customer Service Center at 1-800-659-2955 (TTY: 1-800-877-8339) or DisasterCustomerService@sba.gov. June 15, 2020 UPDATE: The SBA is once again accepting applications from all eligible organizations. It is unknown how much funding is still available, but applicants are awarded funds on a first-come, first-served basis. Interested organizations should visit sba.gov/disaster. Paycheck Protection Program The Paycheck Protection Program (PPP) is a loan program created through the CARES Act which was passed by Congress and signed into law on March 27, 2020. Unlike the EIDL program, the PPP is administered by lenders such as banks. The program offers eligible organizations loans equal to roughly 2.5 months of 2019 payroll costs (up to $10 million in total loan proceeds), to be used on specified payroll costs, rent, mortgage interest, and utilities. If borrowers spend the funds in accordance with the guidelines and maintain employee headcount and salaries and wages, the loan may be forgiven up to 100 percent. Loan proceeds not forgiven will be subject to a 1 percent interest rate and 2-year amortization period. Some nonprofit organizations are eligible to apply for PPP loans. Specifically, CARES allows 501(c)(3) nonprofit organizations, 501(c)(19) veterans organizations, and certain tribal business concerns to apply. Note that the organization must have under 500 employees (or otherwise meet the SBA Size Standard for its NAICS code), as well as agree to certifications that can be found on the PPP application and PPP forgiveness application. Funding is still available for this program and nonprofit organizations can still apply. Interested organizations should contact their lender to begin the application process. Note that guidance on this program continues to evolve, and the latest updates on both the loan process and the forgiveness process can be found at https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses. In addition, as Congress continues to negotiate changes to the program applicants and borrowers should watch for changes or stay in touch with their advisors to ensure they are complying with the latest program guidelines. June 15, 2020 UPDATE: While funds remain, loans will only be issued through June 30, 2020. Interested organizations should contact their lender to begin the application process. Main Street Lending Program The Main Street Lending Program (MSLP) offers loans to eligible small and medium-size businesses affected by COVID-19. The program offers loans, starting at $500,000 based on the business’s debt structure and 2019 earnings before interest, taxes, depreciation, and amortization (EBITDA). According to the program’s Frequently Asked Questions, nonprofit organizations are currently not eligible for this program. The document states: “While non-profit organizations are not currently eligible under the Program, the Federal Reserve acknowledges the unique needs of non-profit organizations, many of which are on the front lines providing critical services and research to fight the pandemic. EBITDA is the key underwriting metric required for the [loan program]. The Federal Reserve recognizes that the credit risk of non-profit organizations, as a matter of practice, is generally not evaluated on the basis of EBITDA. The Federal Reserve and the Treasury Department will be evaluating the feasibility of adjusting the borrower eligibility criteria and loan eligibility metrics of the Program for such organizations.” For more information on this program, visit https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm. June 15, 2020 UPDATE: The Federal Reserve announced that it is seeking feedback through June 22 on its proposal to expand this program to small and medium-sized nonprofit organizations. If approved, eligible nonprofits may include organizations that:

• are considered a tax-exempt organization under section 501(c)(3) or 501(c)(19) of the Internal Revenue Code
• were in sound financial condition before the coronavirus pandemic and could benefit from additional liquidity to manage through this challenging period
• employee a minimum of 50 and maximum of 15,000 employees
• have operational history of at least five years
• have endowments of no more than $3 billion.

  Additional financial thresholds based on operating performance, liquidity, and ability to repay debt may apply. In addition, the Main Street Lending Program has also been expanded for all organizations with a new minimum loan size of $250,000. To learn more regarding the proposal to expand the program to nonprofits, visit the Federal Reserve’s press release at https://www.federalreserve.gov/newsevents/pressreleases/monetary20200615b.htm. For additional information about general program changes, visit https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm.   For more information about relief options available to nonprofit organizations, contact your HBK Advisor.

On July 15, an updated FAQ document was released on the Main Street Lending Program (MSLP).

Key updates include:

Revised Definition of Ineligible Businesses
A recently released definition of ineligibility provided by the SBA and Treasury for the Paycheck Protection Program has been adopted for the Main Street Lending program. Ineligible businesses include those where “an owner of 20 percent or more of the equity of the applicant is presently incarcerated or, for any felony, presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or has been convicted of, pleaded guilty or nolo contendere to, or commenced any form of parole or probation (including probation before judgment) for, a felony involving fraud, bribery, embezzlement, or a false statement in a loan application or an application for federal financial assistance within the last five years or any other felony within the last year”.

In addition, a sole proprietor who is not otherwise established as a “business” as defined by the program is not an eligible borrower under the Main Street program.

Borrowers are expected to review all criteria for eligibility and ensure they make a reasonable, good-faith effort to determine their eligibility.

Clarification on loan terms
Certain terms of the Main Street Loan have been updated, including:

• Lenders may charge certain fees to borrowers, and fees may be included in the principal amount of the loan.
• While the interest rate is calculated based on LIBOR, LIBOR floors are not permitted.
• Borrowers who were established before March 13, 2020, but who cannot produce sufficient financial history to establish their financial condition before the COVID-19 pandemic may not be eligible for a Main Street loan. However, those entities with clear predecessors or subsidiaries may be permitted to use the financial records of these predecessors or subsidiaries.
• The program generally prohibits using the funds for the benefit of the borrower’s foreign parents, affiliates, or subsidiaries, or to refinance or pay existing debt, nor can the loan funds (or any funds) be used to pay dividends, distribute capital, repurchase equity, pay compensation over certain thresholds or repay debt ahead of schedule, unless otherwise specified in the program terms. Borrowers or prospective borrowers are encouraged to review all loan terms and ensure compliance with the provisions for using the funds.

Clarifications to capital distribution restrictions
The CARES Act provides specific restrictions on compensation, stock repurchase, and capital distributions for borrowers of a Main Street Loan. However, these restrictions do not apply to “distributions made by an S Corporation or other tax pass-through entities to the extent reasonably required to cover its owners’ tax obligations in respect of the entity’s earnings or distributions made by a tribal business to a tribal government owner.” Additional information pertaining to tribal businesses is provided in FAQ H.15.

To review the latest FAQ document as well as term sheets and other program information, please visit https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm.

If you have questions about the Main Street Lending Program or other COVID-19 relief options, please contact your HBK Advisor.

The Small Business Administration announced on July 11 that its Economic Injury Disaster Loan (EIDL) emergency advance funds, allocated through the CARES Act, and subsequently, the Paycheck Protection Program and Health Care Enhancement Act, have run out. EIDL funds to small businesses of $1,000 per employee up to $10,000, also referred to as emergency grants, do not need to be repaid, though they reduce forgiveness for borrowers with Paycheck Protection Program loans.

While emergency advance or grant funds have been expended, Economic Injury Disaster Loans remain available to eligible organizations to support working capital needs generated by the COVID-19 crisis. Loan terms include an amortization period of up to 30 years, and a low interest rate of 3.75 percent for small businesses and 2.75 percent for non-profit organizations.

For more information on eligibility and loan terms, visit sba.gov/disaster.

If you have questions about an Economic Injury Disaster Loan, the related emergency advance or other COVID-19 relief options, please contact your HBK Advisor.