A new loan program offered by the federal government will help businesses, employees and self-employed individuals that have been impacted by the COVID-19 public health emergency, according to Senator Joe Pittman.
The new Paycheck Protection Program will offer loans to cover payroll costs, mortgage interest, rent and utility costs over an eight-week period for businesses affected by coronavirus mitigation. The loans can be forgiven by the federal government if certain conditions are met.
Businesses must maintain their number of staff and level of payroll and quickly rehire any recently displaced employees in order to qualify for loan forgiveness.
No more than 25 percent of the loan may cover anything other than payroll costs, and loan payments will be deferred for six months for any amount that is not forgiven.
The program is open to small businesses, veterans’ organizations, sole proprietorships, self-employed individuals and independent contractors, so long as each entity has 500 or fewer employees.
The application period for small businesses and sole proprietors will open on April 3. Self-employed individuals and contractors can apply starting on April 10.
More details about the program are available at: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp.
Contacts: Carlton Logue clogue@pasen.gov