CARE Act- Small Business Loan
What You Need to Know About the Forgivable CARES Loan
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program (PPP), the initiative provides 100% federally guaranteed loans to small businesses. Most importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
Details regarding the program are below:
- Small Business Paycheck Protection Program Overview
- Information for Borrower- Paycheck Protection Program
- Paycheck Protection Program Application
SMALL BUSINESS PAYCHECK PROTECTION PROGRAM- OVERVIEW
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorship's, and independent contractors—are eligible. Businesses with more than 500 employees are eligible in certain industries.
Starting April 3, 2020, small businesses and sole proprietorship's can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap.
You can apply through any existing SBA 7(a) 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. All loans will have the same terms regardless of lender or borrower.
Business Services Contact Information
- Eric Beckhusen, Chairman & CEO- email@example.com
- Adam Wright, VP & Commercial Loan Officer - firstname.lastname@example.org
- Corey Collins, AVP & Commercial Loan Officer - email@example.com
- Jeff Holbrook, VP & Commercial Loan Officer- firstname.lastname@example.org
- Ben Gary, Credit Analyst - email@example.com
- Eric Wynes, President - firstname.lastname@example.org
- Jason Dozeman, AVP & Commercial Loan Officer - email@example.com