SBA Loans For Call Centers & BPOs

**  updated post with SBA changes on 4/2**

As of 4:00pm ET on 4/2, the SBA and participating lenders are planning on going live with the PPP tomorrow, 4/3. However, final guidance to banks has not been sent but has been promised by midnight tonight. Because of the high possibility of fraud, banks may choose to service current customers first, non-customer but known businesses next, and finally unknown businesses last. Therefore, we recommend you apply for the PPP loan with your current bank or financial institution.


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


In the recent Coronavirus, Relief, and Economic Security (CARES) Act signed into law is $349B set aside for Small Business loans. Many call center 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 2.5x Monthly Payroll up to $10M  1% 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

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


Note: Kommit & Company will not be compensated by any lenders for the SBA Loans listed above.



Economic Injury Disaster Loan (EIDL):

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an EIDL advance of up to $10,000.

The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.

Click here to apply for EIDL.

Paycheck Protection Program:

The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.

Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

Under this program:

  • Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
  • Loan payments will be deferred for six months.
  • If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.

Click here for a lender match near you.

SBA Express Bridge Loan:

Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.

  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan

Click here to find a lender match and apply for EBL.

SBA Debt Relief:

The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis.

Under this program:

  • The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
  • The SBA will pay the principal and interest of current 7(a) loans for a period of six months.

Contact your current SBA 7(a) loan provider for more details and to apply.