Small businesses can apply for and receive loans starting April 3rd.
WASHINGTON, DC – Congressman Garret Graves (South Louisiana) announced today that small businesses can now fill out an application to the Paycheck Protection Program for a forgivable loan to pay their employees during the COVID-19 crisis. Small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders beginning on April 3, 2020. Graves urges borrowers to apply as soon as possible because the program is subject to a funding cap.
- For an overview of the program CLICK HERE
- If you’re a lender, more information can be found HERE
- If you’re a borrower, more information can be found HERE
- The application for borrowers can be found HERE
“I commend Sec. Mnuchin and the SBA for taking quick action to implement this program and get information out to the public – this is the kind of performance that people deserve and should expect from their government during a crisis. Louisiana small businesses, independent contractors, self-employed and non-profits need to also act quickly to review and evaluate the program and, if it could benefit them and their workforce, get to preparing their applications,” said Graves. “Louisiana is no stranger to disasters, and know how to pull together in times of crisis. We will pull through this together, and the assistance from the CARES Act will help us emerge stronger.”
About the program. The Paycheck Protection Program (“PPP”), created through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.
The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for 6 months.
When can I apply?
- Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
- Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
- Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.
Where can I apply? You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. Visit www.sba.gov for a list of SBA lenders.
The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury.
Also today: The U.S. Department of Labor’s Wage and Hour Division (WHD) published more guidance to provide information to employees and employers about how each will be able to take advantage of the protections and relief offered by the Families First Coronavirus Response Act (FFCRA) when it goes into effect on April 1, 2020. Learn more HERE.
Louisianans can start or reopen a claim for unemployment insurance HERE or by calling 1-866-783-5567.