By SEMA Washington, D.C., Staff
The federal government wants to help companies keep their workers on the payroll. Under a recently enacted federal law, small businesses may file a “Paycheck Protection Loan” application with their local participating bank starting on April 3. These are forgivable loans. The interest rate is 1.0% on a two-year loan backed by the U.S. Small Business Administration (SBA) and U.S. Department of the Treasury. Companies may borrow 250% of their business’ monthly payroll up to $10 million to cover payroll, rent and other expenses. In turn, the SBA will forgive that portion of the loan used for payroll, rent, mortgage interest and utilities for a period of eight weeks if a small business retains its employees and payroll levels.
Don’t wait—there is a program funding cap. Members are encouraged to contact their banks, get their paperwork in order and file an application.
Visit the SBA website for more information.
For more resources to help you address Coronavirus, visit www.sema.org/coronavirus.