In the recent Coronavirus, Relief, and Economic Security (CARES) Act signed into law is $367B set aside for Small Business loans. Many call centers and BPO owners have faced significant loss of business due to a myriad of effects the virus has caused to revenue streams, remote work capability, and loss of brick and mortar facilities to stay at home orders. This post will outline the key points of SBA’s loan programs available and gives you resources to learn about and links to apply for loans.

Loan Name Loan Amounts Interest Rate Lenders Term Forgivable?
Econ. Disaster In Loan (EIDL) $2M w/ $10,000 advance 3.75% SBA only 10-30 years No
Paycheck Protection Program 8x Weekly Payroll + 25% up to $10M 0.5% SBA & FDIC Banks 2 years Yes
Express $25,000 6.5% SBA Banks 7 years No

[more detail and links to apply below]

Most pertinent to call centers and BPOs will be the Paycheck Protection Program, and we strongly encourage all affected to apply. The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The SBA will forgive loans if employees are kept on the payroll for eight weeks and the money is used for payroll (at least 75%), rent, mortgage interest, or utilities.

The Paycheck Protection Program will be available through June 30, 2020

A sample application for Payroll Protection Program can be found by clicking here

In order to qualify for this SBA program, call centers and BPOs who fall under NAICS code 56412 are subject to a ceiling of $16.5M in revenue and must have fewer than 500 employees. For those qualified, a financial impact from COVID 19 must be included in the application.

Loans are available for up to $10M and will be an amount determined by 8 weeks of average payroll plus 25%. Proceeds may be used to cover payroll and other overhead items such as rent, utilities, and benefits. Maturity of the loans is 2 years, with no principal or interest due for 6 months, and all loans will be at a 0.5% interest rate. This program does not require collateral or a personal guarantee. Neither the government nor lenders will charge small businesses any fees. Employees that have already been furloughed can be brought back to count positively towards retention. Amounts forgiven will not be subject to Income Tax.

The loans will be 100% guaranteed by the SBA and funded by SBA approved lenders as well as FDIC member banks, Federally insured credit unions, fintech companies, and other economic development offices around the country. As early as Friday, April 3, the applications will be available online either on or on lender websites. Prior to applying, we encourage everyone who will consider the Paycheck Protection Program to be ready and have your supporting documentation organized into a data room (Box, Dropbox, etc.)

Prepare the following in advance:

  • Tax Returns: last 3 years, business and personal
  • Financials: P&L, Balance Sheet, Statement of Cash Flows last 3 years
  • Payroll: Documentation for last 1-2 years
  • Statement of Impact: Written account of how the pandemic has affected revenues.

Informational resources can be found on both lenders’ websites and on Live Oak Bank is a leading SBA Lender, and their site has guides that can walk you through the application process. As there are over 10M small businesses in the US, the line for approval may be long. We encourage all call centers and BPOs affected by the COVID related economic downturn to apply for this loan and begin the preparation today.

Feel free to reach out to us with questions by emailing me at