Apr 09 2020
Washington—Senator Dianne Feinstein (D-Calif.) today released the following statement on the Paycheck Protection Program that was included in the coronavirus recovery legislation:
“The Paycheck Protection Program is a $350 billion Small Business Administration program designed to help businesses and nonprofits keep employees on payroll through forgivable loans. Unfortunately, a lack of clear guidance and technical problems have prevented many businesses from accessing these vital funds.
“The Treasury Department and SBA need to clear up confusion in their program guidance, resolve technical issues that are preventing applicants from accessing the program and work with small businesses and lenders to ensure that funds are delivered as soon as possible. And the banks issuing the loans for the federal government shouldn’t be turning away applicants just because they don’t have an existing relationship with the bank – these funds need to reach all small businesses with a legitimate need.
“This program was included in the recently enacted coronavirus recovery legislation to help small businesses weather the storm. Employees can’t afford to miss another paycheck because a key program is having trouble getting off the ground.”
Paycheck Protection Program
(Source: Small Business Administration)
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA 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.
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 in the program.
Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection
The program will be available through June 30, 2020.
For affiliation rules applicable for the Paycheck Protection Program, click here.