SBA Small Business Disaster Loans
Last updated 4/3/2020 at 2:29pm
Calling all Borrego businesses! Has your business been affected due to the Coronavirus (COVID-19)?
Beginning April 3, small businesses can apply for a loan, stemming from the nearly $350 billion in loans thanks to the CARES Act signed by President Donald Trump in March.
The loan program, known as the Paycheck Protection Program, is intended to support businesses so they can ride out the tough economic times and, most importantly, assist with either keeping current workers or rehire those who were laid off.
How much money can small businesses get?
They can get up to 2.5 times their total monthly payroll (with a maximum of $10 million). Importantly, as many businesses have already slashed jobs, companies will rely on payroll numbers from before the crisis. The Small Business Administration has set an interest rate of 1% on the loans, and repayment will be deferred for six months.
Who is eligible?
Those with fewer than 500 employees, including sole proprietorships and freelancers, as well as nonprofits.
The application requires much less information than a typical small business loan. A sample form put out by the SBA ahead of the program showed there were just two pages of questions on basic information, like payroll size and what the owner intends to use the money for. Notably, these loans do not require personal guarantees or collateral.
The program is currently set to run through June 30.
Kevin J. Ardolf
Executive Vice President/Chief Credit Officer
1443 Main Street, El Centro CA 92243
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