$ 349 billion in upcoming small business loans – press enterprise
A $ 349 billion low-interest loan program for small businesses facing the economic fallout from the novel coronavirus outbreak could be up and running by the end of the week.
The Paycheck Protection Program, designed to help small businesses cope with payrolls and avoid layoffs, was unveiled by the US Small Business Administration and the Treasury Department on Tuesday. It is expected to go into effect on Friday, the agencies said.
“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,” said SBA administrator Jovita Carranza. , in a press release.
Businesses with 500 or fewer employees are eligible, including nonprofits, independent contractors, and self-employed workers. The maximum loan amount is $ 10 million, fully guaranteed by the SBA. The loans will carry an interest rate of 0.5%.
Most federally insured banks and credit unions are SBA participants. Details on how to apply are available on the SBA website, sba.gov.
The loans will mature in two years and the first payment can be deferred for six months. There is no warranty or personal guarantee requirement, and no fees need to be paid to the SBA.
In addition, the loans can be applied retroactively to February 15, allowing companies that have already laid off employees to rehire them until June 30.