The Houston-Galveston Area Council (H-GAC) is offering two loan programs to provide small businesses immediate relief so they can keep their operations running. Both programs are being managed by the Houston-Galveston Area Local Development Corporation (H-GALDC).

Small Business Bridge Loan Program

Businesses applying for an economic injury disaster loan (EIDL) may have to wait six to eight weeks before their loan is approved through the Small Business Administration.

Those businesses may apply with the H-GALDC for immediate access to capital of up to $25,000 to help with costs related to COVID-19. The bridge loan may be paid back once approved for the EIDL. Visit hgaldc.com/business-loan.aspx for more information and to apply.

Harris County COVID-19 Forgivable Loan Program

In partnership with H-GALDC, Harris County has established a $10 million-backed loan program to help area small businesses economically impacted by COVID-19 stay open and meet necessary operating expenses. These zero-interest loans are up to $25,000 each with a five-year term and a loan forgiveness component.

Loan terms include:

-Up to $25,000 per loan

-0% interest

-Five-year terms

-Three-month grace period

-100% of loan forgiven after five years pending program compliance

-Option of applying loan forgiveness proceeds to tax bill

-No prepayment penalty

To qualify for a loan, small businesses must meet the following requirements:

-Located in Harris County

-In business on or before Jan. 1, 2019

-Property taxes in good standing with Harris County Tax Office

-Proof of negative impact by COVID-19

-Less than $15 million net worth

-Average net income of $5 million or less

For more information and to apply, visit harriscountyloan.com.

Additional Resources for Small Businesses

The Small Business Administration is accepting disaster relief applications from small businesses and private non-profits that have been economically impacted by COVID-19.

Emergency Economic Injury Grants and Economic Injury Disaster Loans

The Small Business Administration is offering emergency economic injury grants and economic injury disaster loans (EIDLs) for Texas for-profit small businesses and non-profit organizations with fewer than 500 employees to overcome temporary loss of revenue due to COVID-19.

The grant provides an emergency advance of up to $10,000 to small businesses and private non-profits within three days of applying for an EIDL. The EIDL loan provides up to $2 million in assistance to help businesses meet payroll, rent/mortgage, utilities, and other expenses incurred during or due to the COVID-19 pandemic.

For more information and to apply, visit www.SBA.gov/disaster.

Paycheck Protection Program

The Paycheck Protection Program is another program by the Small Business Administration that provides cash-flow assistance through 100% federally guaranteed loans to employers who maintain their payroll during the COVID-19 pandemic.

Businesses impacted by COVID-19 between Feb. 15 and June 30, 2020, may have eight weeks of payroll forgiven if they maintain their payroll. Additional expenses, such as rent/mortgage (interest only), utilities, and other expenses during this eight-week period may also be forgiven.

Any additional expenses outside the eight-week period are structured into a loan repayment plan with a 10-year term and interest rates of no more than 4%. The maximum loan size is equal to 250% of a business' average monthly payroll costs between Feb. 15 and June 30, 2019, and must not exceed $10 million.

Contact any authorized SBA 7(a) lender for more information and application instructions.