The Small Business Administration has released more details on its $349 billion loan program to give relief to businesses affected by coronavirus pandemic measures.
The loan program was part of the $2 trillion stimulus package signed into law by President Donald Trump last week.
According to the SBA, the Paycheck Protection Program will be available retroactive from Feb. 15, so employers can rehire their recently laid-off employees through June 30.
All businesses are eligible, 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 SBA size standards.
The maximum loan amount is up to $10 million determined by eight weeks of prior average payroll plus an additional 25 percent of that amount.
If a business maintains its workforce, S.B.A. will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll and certain other expenses, following loan origination.
All loans under this program will have an interest rate of 0.5 percent, and a maturity of two years. The first payment is deferred for six months with a 100 percent guarantee by SBA. No collateral is needed, and no personal guarantees. There will be no borrower or lender fees payable to the S.B.A., the administration said.
For more information, or to apply, click here.
Comments