Starting April 3, 2020, through June 30, 2020, small businesses can apply for the $350 billion in loans available through the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress. The Paycheck Protection Program (Program) provides forgivable loans to cover payroll costs, interest on mortgages, rent, and utilities.
Federal Relief for Small Businesses
Starting April 3, 2020, through June 30, 2020, small businesses can apply for the $350 billion in loans available through the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress. The Paycheck Protection Program (Program) provides forgivable loans to cover payroll costs, interest on mortgages, rent, and utilities.
Who is eligible for the Paycheck Protection Program?
- Small businesses with 500 or fewer employees — including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors — are eligible
- Starting April 3, 2020, small businesses and sole proprietorships can apply
- Starting April 10, 2020, independent contractors and self-employed individuals can apply
- 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
How much money can small businesses get through this Program?
Small businesses can apply to receive up to 2.5 times their average monthly payroll expense, including health-care benefits, for annual salaries up to $100,000. Loans max out at $10 million. In addition, the Small Business Administration (SBA) has set an interest rate of 1% on the loans, and repayment will be deferred for six months.
Business owners can also apply for a Disaster Assistance Loan for up to $2 million to cover loss in revenue. The SBA is currently offering long-term repayment plans, for a period of up to 30 years and fixed low-interest rates. Eligible small business owners are able to apply for an Economic Injury Disaster Loan for an advance of up to $10,000. Within three days of a successful application, funds will be made available and not have to be repaid. For questions, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.