The CARES Act established a new $349 billion Paycheck Protection Program to provide relief to millions of small businesses so they can sustain their businesses and keep their workers employed.
“This legislation provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed,” said Secretary Mnuchin. “Treasury and the Small Business Administration expect to have this program up and running by April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day. The loans will be forgiven as long as the funds are used to keep employees on the payroll and for certain other expenses.”
The Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed. More details are available at SBA.gov/Coronavirus. It is important to note, the new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.
There are several Clear Lake Area Chamber of Commerce members that can assist you with the Paycheck Protection Program.
Loan Terms and Conditions
- Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
- Maximum loan amount up to $10 million
- Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
- All loans under this program will have the following identical features
- Interest rate of 0.5%
- Maturity of 2 years
- First payment deferred for six months
- 100% guarantee by SBA
We received the below resources from Senator Cornyn’s Office.
Other SBA Financial Resources:If you do not qualify for the Paycheck Protection Program, you might be eligible for other SBA financial assistance. Our local SBDC office is operating and available to answer your questions. They have compiled a comparison chart for different loan options click here to view. For more information, please email Herb Hildebrand, Director, at Herbert.Hildebrand@sjcd.edu.
Please continue to reference our COVID-19 Resource Page for more information.
Note: This email contains the most current information received from the U.S. Chamber of Commerce and the SBA. Information is subject to change. We will communicate as additional details are available.