SBA Paycheck Protection Program Highlights
As of Friday, March 27, 2020, the Federal Government passed the CARES Act (Coronavirus Aid, Relief and Economic Security). This is part of a $2 trillion economic stimulus package. Part of this package includes the Paycheck Protection Program a $350 billion, and the Small Business Administration loan program which is under 7(a) lending programs, with a 100% government guarantee.
More details about the program from the Small Business Administration (SBA) have not been announced as of yet. We are waiting for more information to be presented and when we know more, we will let you know.
Program Overview
The Paycheck Protection Program provides incentive for small businesses to keep their workers on the payroll by providing each small business a loan up to $10 million for payroll and other expenses such as employee salaries, paid or sick medical leave, insurance premiums, mortgage interest, rent, and utility payments.
Eligibility
Businesses – including eligible non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors described in the Small Business Act – with 500 or fewer employees may apply.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
Borrower must make a good faith certification the loan is necessary due to the uncertainty of current economic conditions caused by COVID-19, and funds will be used for worker retention and maintain payroll, lease and utility payments.
More Information will be made available as it becomes known. Thank you for your patience.
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