GOP Rep Details Loans For Smalls Businesses: ‘Here’s How Your Workers Can Stay Employed’

The coronavirus quarantine is forcing thousands of small businesses across the country to shut their doors. Millions of Americans are being furloughed because of these small business closures.

To help, the government signed into law a bill that includes loans for small businesses that can help. Under the proposal, their company can continue to function by receiving one of these low-interest loans.

Here is what you need to know:

Who can apply?

• Small Businesses
• Non-Profits
• Independent contractors
• Self-employed individuals

What type of loan is it?

• 100% federally guaranteed loan for eight weeks

Is any part of the loan eligible for forgiveness?

• “If you use the money for payroll, rent, utilities, that portion of the loan will be forgiven.”

Contact your small business association (SBA) approved lender for details. Public officials have warned everyone over the weekend that applying for these loans is completely free. Do not trust lenders that charge a fee for applying.

From the US Small Business Association site:

“The Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed. Visit SBA.gov/Coronavirus for more information on the Paycheck Protection Program.

• 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.

Loan Terms & Conditions

• Eligible businesses: All small 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 1%

  • Maturity of 2 years

  • First payment deferred for six months

  • 100% guarantee by SBA

  • No collateral

  • No personal guarantees

  • No borrower or lender fees payable to SBA”

Attention small businesses: here's how your workers can 𝒔𝒕𝒂𝒚 𝒆𝒎𝒑𝒍𝒐𝒚𝒆𝒅:

100% federally-guaranteed loans for 8 weeks. If you use the money for payroll, mortgage interest, rent, and utilities, that portion of the loan will be 𝒇𝒐𝒓𝒈𝒊𝒗𝒆𝒏. pic.twitter.com/o1gP6wWfKP

— Kevin McCarthy (@GOPLeader) April 6, 2020