Good afternoon colleagues,
Below you will find two important updates regarding financial support during the COVID-19 pandemic:
1) MHA’s COVID-19 Update on new sources of financial support, including the SBA Paycheck Protection Program through the Federal Stimulus Package.
MHA’s March 30th COVID-19 Update includes information on new sources of financial support. Please see the Loan Details of $2.2T Relief Bill section for more information. It references a new program, Paycheck Protection Program, offered through US Small Business Association approved banks.
- Quick Summary of the Paycheck Protection Program Loan:
- Rate: 4% fixed
- Amount of Loan: 2.5x average monthly payroll (including
xxxowner & independent contractors) - Terms: Up to 10 years
- First 6-12 months of payments are deferred
- No collateral or personal guarantee required
- Loan forgiveness on funds used for qualifying expenses
xxx(e.g. payroll, rent, etc.) - Application will go through SBA approved banks –
xxxpossibly your own business bank
You can apply for the Paycheck Protection Program (PPP) at any lending institution that is approved to participate in the program through the existing U.S. Small Business Administration (SBA) 7(a) lending program and additional lenders approved by the Department of Treasury. This could be the bank you already use, or a nearby bank. There are thousands of banks that already participate in the SBA’s lending programs, including numerous community banks. You do not have to visit any government institution to apply for the program. You can call your bank or find SBA-approved lenders in your area through SBA’s online Lender Match tool.
More infomation can be found online: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp
A recent article highlights this program: https://ptmoney.com/paycheck-protection-program/