Covid-19 Lending Solutions

Updated Wednesday, March 25:

At John Marshall Bank we are committed to being a helpful resource to our clients, especially in the uncertain times we all find ourselves in. As of today, the Bank has identified several lending solutions and resources to small businesses in the DC Metro Area who may be adversely affected by the Coronavirus (COVID-19) outbreak.

Small Business Administration – Economic Injury Disaster Loans

• Eligible entities may qualify for loans up to $2 million at an interest rate of 3.75% (2.75% for nonprofit organizations) with terms up to 30 years. Funds may be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred.
• Economic Injury Disaster Loans over $25,000 require collateral and the SBA takes collateral when available. The SBA will not decline a loan for lack of collateral but requires borrowers to pledge what is available.
• SBA’s Economic Disaster Loan funds come directly from the US Treasury and applicants do not go through a Bank to apply. There is no cost to apply. You can apply online directly through the Small Business Administration by following this link; https://disasterloan.sba.gov/ela/
• The Small Business Administration stresses the biggest reason for delays in processing is due to missing information. Make sure to complete all filing requirements before submitting the application and forms.
• The Small Business Administration believes filing online is the most efficient way, but paper loan applications can be downloaded from sba.gov/disaster. Completed applications should be mailed to: US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
• For assistance with reconstruction financial records, preparing financial statements and submitting the loan application, this help is available from any of SBA’s partners. For the nearest partner office, visit: https://www.sba.gov/local-assistance

The Virginia Small Business Financing Authority – SWaM Business Loan Fund (“MicroLoan”)

• The Virginia Small Business Financing Authority offers a MicroLoan Program with loans from $10,000 to $25,000 to small, women and minority-owned businesses. This loan product is administered directly from the state of Virginia and applicants do not go through a Bank to apply. Typically applicants under this program need to first be counseled by the Virginia Small Business Development Center, however that requirement has been waived due to the current COVID-19 outbreak. Note only businesses with a presence in the state of Virginia may be eligible for this type of financing.
• Please visit the Virginia Small Business Financing Authority website at https://www.sbsd.virginia.gov/virginia-small-business-financing-authority/ for additional information. If you scroll down the page, you’ll see an application and personal financial statement for the program under “SWaM Business Loan Fund”. Feel free to reach out to Joni F. Marshall (Regional Lending Manager for the VA Small Business Financing Authority) at marshall@sbsd.virginia.gov for more information.
• According to the Virginia Small Business Financing Authority, a typical MicroLoan can be administered in 24-48 hours once all financial statements are submitted. Note this turnaround time may be extended due to additional volume.

Maryland Assistance Programs

The state of Maryland has passed the Maryland Small Business COVID-19 Emergency Relief Grant Fund, the Maryland Small Business COVID-19 Emergency Relief Loan Fund and the Maryland COVID-19 Layoff Aversion Fund as resources for eligible businesses. Both programs offer working capital assistance to Maryland small businesses (and nonprofits) with disrupted operations due to COVID-19. Applications for the three programs are completed directly through the state of Maryland and can be completed online with the following links.

• Maryland COVID-19 Emergency Relief Loan Fund:
  • Eligible for Maryland for-profit small businesses
  • Loans up to $50k for businesses with fewer than 50 employees, a minimum credit score of 575, no collateral requirements
  • Deferral of any payments for the first 12 months
  • For further information on terms, eligibility, and applications – https://commerce.maryland.gov/fund/maryland-small-business-covid-19-emergency-relief-loan-fund
• Maryland COVID-19 Emergency Relief Grant Fund:
  • Eligible for Maryland small businesses and nonprofits
  • Grants up to $10,000 for businesses and nonprofits with fewer than 50 employees and less than $5 million in revenue
  • For further information on terms, eligibility, and applications – https://commerce.maryland.gov/fund/maryland-small-business-covid-19-emergency-relief-grant-fund
• Maryland COVID-19 Layoff Aversion Fund:
  • Grant awards up to $50,000 per applicant to support small businesses with financial resources who are undergoing economic stresses due to the COVID-19 pandemic by preventing or minimizing the duration of unemployment resulting from layoffs.
  • The proceeds from this fund can’t be used to cover rent and/or employee wages. The proceeds from this fund are intended to cover direct costs associated with moving their employee base to virtual, remote access work and/or adopting creative approaches and strategies to reduce or eliminate the need for layoffs in the small business community.  For full eligibility requirements, please refer to the link below.
  • For further information on terms, eligibility, and applications –  http://www.labor.maryland.gov/employment/covidlafund.shtml

District of Columbia Assistance Programs

Mayor Bowser and the Council of the District of Columbia are investing $25 million in the COVID-19 Recovery Effort and the DC Small Business Recovery Microgrants Program, which will be housed in the Office of the Deputy Mayor for Planning and Economic Development. Application for the grant program is completed directly through the District of Columbia and can be completed online by following the link below.

• DC Small Business Recovery Microgrants
  • Grants up to $25,000 for eligible DC small businesses, non-profits, independent contracts, and self-employed individuals; application closes at 11:59 p.m. on Tuesday, March 31^st.
  • Documentation is required to apply for the grant. According to the District of Columbia, the application can take 30-40 minutes if all documentation is prepared, or over an hour if not. All the documentation required for the application can be found in the link below.
  • For further information on terms, eligibility, and applications –  https://coronavirus.dc.gov/dc-small-business-recovery-grants

The Small Business Administration has two other major lending programs where they partner with commercial banks to complete transactions. The underlying programs have not been modified for the current COVID-19 situation but can be responsive to requests for payment modifications.

Small Business Administration 504 Loan Program

• The Small Business Administration provides loans to assist business owners in purchasing owner-occupied real estate through the SBA 504 Loan Program. This program is specifically administered by Certified Development Companies (CDCs) on behalf of the Small Business Administration. John Marshall Bank has been in contact with one specific Certified Development Company that shared they are looking at payment modifications for up to six (6) months on existing SBA 504 Loans. If you are looking for potential payment relief on your SBA 504 Loan, the Bank recommends reaching out directly to your contact at the Certified Development Company that administered the SBA 504 Loan.
• If you already participate in the 504 loan program, it is our understanding that if they contact the Business Finance Group or REDCO directly, they can modify your loan to Interest Only payments for up to 6 months. 

Small Business Administration 7A Loan Program

• John Marshall Bank currently does not participate in the SBA 7A Loan Program. Note in this program the SBA provides a guarantee on certain loans administered by commercial banks. John Marshall Bank though would recommend if you have a loan under the SBA 7A Loan Program to reach out to your lender to explore certain payment modifications.

For more information on Lending Options and Resources for small businesses impacted by COVID-19, Contact Us.