SBA-CARES Act SBA 7(a) Loan 


The CARES Act provides relief to small businesses, including $349 billion for Small Business Administration (SBA) loan guarantees and subsidies. These loans are intended to cover the cost of payroll-related and other expenses arising from maintaining pre-COVID-19 employees and compensation levels for the eight-week period after the funding of each loan.


NOTE: The CARES Act specifically allows borrowers to obtain loans under both the CARES Act and the EIDL program, so long as funds from the EIDL program are not used to pay for allowed uses under the CARES Act.

  • Similar to the existing SBA 7(a) loan program, borrowers will obtain loans directly from existing banks and lenders enrolled in the SBA 7(a) program (or other lenders approved by the SBA), and the loans will be guaranteed by the SBA.

  • The loan amount will be the lesser of (i) $10 million and (ii) 2.5 times the average monthly payroll costs for the one-year period before the date the loan is made. Special rules apply to calculate the loan amount for seasonal employers and businesses less than a year old.

  • Repayment terms will be up to 10 years.

  • Annual interest will be no more than four (4%) percent.

  • A borrower must (i) have been in operation on February 15, 2020 and (ii) had employees for whom it paid salaries and payroll taxes, or paid independent contractors.

  • The CARES Act provides a process by which borrowers are eligible for loan forgiveness in an amount (not to exceed the principal amount of the loan) equal to the amount spent by the borrower during an eight-week period after the origination date of the loan or permissible items.

[Read more about the CARES Act]

Dillard Capital is prepared to assist you in submitting a detail application in support of the loan request and, later, in support of the loan forgiveness request.  

Dillard Capital is working with various banks and alternative lenders to expedite CARES Act SBA 7(a) Relief Loans.