May 05 2020
Washington—Senator Dianne Feinstein (D-Calif.) today released the following statement on crucial funds for California small businesses that were allocated through the second round of Paycheck Protection Program loans:
“Last month, many California small businesses were left behind when the Small Business Administration handed out loans under the emergency Paycheck Protection Program. California ranked only 42nd out of all states in funding per person.
“Following that first round of funding, Senator Kamala Harris and I called on the Treasury Department to immediately address the wide disparities in funding among states.
“I’m pleased to announce that California is receiving far more funds in the second round of loans – so far we’re the third-ranked state in per-person funding. This is a more realistic share of loans for the largest economy in the country, and these loans – which will be forgiven if businesses maintain staffing levels – will help provide paychecks to many Californians.
“These funds will ensure more businesses remain viable, more employees keep receiving a paycheck and California’s economy can recover as quickly as possible.”
Paycheck Protection Program
(Source: Small Business Administration)
- The Paycheck Protection Program (which will be available through June 30, 2020) is a loan program designed to provide a direct incentive for small businesses to keep their workers on the payroll.
- The Small Business Administration will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
- Small businesses 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.
- For more information about the Paycheck Protection Program, please visit the program’s website here.