By Chip Phillips on May 11, 2020
Tags: COVID-19 Resources
The amount of money to request when applying for federal loans during the COVID-19 pandemic depends on the type of loan and the intended use of the funds.
This program builds on top of the existing U.S. Small Business Administration (SBA) loan program and provides forgivable loans to companies to keep employees on payroll. The loan amount to request should be related to covering payroll costs, rent, mortgage interest, or utilities.
The Small Business Administration has a resource to help calculate the maximum loan amount by business type here.
The SBA provides a number of different types of loans. These loans are not tied to specific uses (unless specified in 7(a) programs).
There is not a set formula for calculating how much funding you should request, either in total or for each individual loan. Your best resource will be a personal one, likely either an internal or external accountant or your lending provider.