The new $349 billion Paycheck Protection Program, part of the CARES Act, will accept applications starting tomorrow, Friday, April 3, for loans to keep small businesses going during the coronavirus pandemic.
The U.S. Small Business Administration (SBA) and the U.S. Department of the Treasury launched this effort, which pairs lenders with small businesses who need assistance through the coronavirus in order to keep business running and workers employed, SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin announced in a press release March 31.
“This unprecedented public-private partnership is going to assist small businesses with accessing capital quickly," Carranza said in the press release. "Our goal is to position lenders as the single point-of-contact for small businesses – the application, loan processing, and disbursement of funds will all be administered at the community level. Speed is the operative word; applications for the emergency capital can begin as early as this week, with lenders using their own systems and processes to make these loans. We remain committed to supporting our nation’s more than 30 million small businesses and their employees, so that they can continue to be the fuel for our nation’s economic engine.”
This capital is available to businesses without collateral requirements, personal guarantees, or SBA fees, the release stated. Loan payments will be deferred for six months, and the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities and mortgage interest.
Visit SBA.gov/Coronavirus for more information on SBA’s assistance to small businesses.
To view the application, click here. To see a fact sheet from the U.S. Department of the Treasury, click here.
The Washington Post and Inc. have provided answers to common questions in their coverage.
