Small Business Paycheck Protection Loan Applications Start Tomorrow
Starting April 3, small businesses and sole proprietorships can begin applying for SBA Paycheck Protection Program (PPP) Loans, the U.S. Treasury Department has announced. Starting April 10, independent contractors and self-employed individuals can apply.
“We encourage you to apply as quickly as you can because there is a funding cap,” according to the Treasury Department instructions.
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 with 500 or fewer employees, including 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. Businesses with more than 500 employees are eligible in certain industries.
Funds are provided in the form of loans that will be fully forgiven when used for up to 8 weeks of payroll costs, including benefits. Funds can also be used for interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at www.sba.gov.
Additional information and applications can be found in the links below.
- If you’re a lender, more information can be found here.
- If you’re a borrower, more information can be found here.
- The application for borrowers can be found here.
4th Legislative Coronavirus Response May Focus On Infrastructure,
Please Share Your Ideas in This Survey
Both President Donald Trump and Congressional Democrats are voicing support for making infrastructure a key part of an expected fourth legislative package responding to the crisis. But Senate Majority Leader Mitch McConnell is throwing cold water on further action, at least for now.
Citing historically low interest rates, Trump suggested a $2 Trillion infrastructure package should be part of the next federal legislative response, while House Speaker Nancy Pelosi revived a $760 billion House Democratic infrastructure package unveiled in January, but said $10 billion would be added for community health centers.
Even as ideas are being circulated, no floor action is expected until late April at the earliest, as at present, neither the House nor Senate are scheduled to return until April 20.
But with myriad ideas circulating, ASBC would like to hear from you. Please take five minutes to complete this brief survey about your ideas on a possible fourth legislative coronavirus response package. We are asking you to include your name, but we will keep all individual responses completely confidential.
Please join the American Economic Liberties Project and the American Sustainable Business Council for a private, off-the-record briefing this Friday, April 3 at 2pm ET to discuss the impact of the Coronavirus pandemic on entrepreneurs and independent businesses.
Senator Ben Cardin (D-MD), Ranking Member of the U.S. Senate Committee on Small Business & Entrepreneurship, will be in conversation with Economic Liberties Executive Director Sarah Miller to discuss the state of current legislation and the resources available to support small businesses through the Coronavirus crisis.
Following the Senator’s remarks, we will continue with a panel discussion featuring:
- Thomas Oppel, Executive Vice President, American Sustainable Business Council and Former Chief of Staff, Secretary of the U.S. Navy
- Stacy Mitchell, Co-Director of the Institute for Local Self-Reliance
- Rodney Foxworth, CEO of Common Future
- Ross Baird, Founder of Blueprint Local and Village Capital (moderator)