The 2.2 trillion dollar coronavirus stimulus bill signed last week included $349 billion for a new small business loan program. The program, known as the Paycheck Protection Program, is eligible for small businesses with 500 or fewer employees. The program will provide loans that can be up to 2.5 times the borrower’s average monthly payroll costs. Borrowed money used for expenses related to payroll, mortgage interest, rent or utilities in the eight weeks following loan origination can be forgiven. The primary purpose for the program is to assist small businesses in keep their employees on the payroll.
You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, or farm credit system that is participating. We encourage you to contact your local lender to see if they are participating. Small business can begin applying on April 3, 2020,
We encourage you to begin the process quickly as the program will be in high demand.