Saturday, May 25, 2024

Paycheck Protection Program loan process expected to begin Friday

by BIZ Magazine

Funds will be disbursed through existing banks and lenders 

Source: Bossier Chamber of Commerce

The Paycheck Protection Program, which passed in the CARES Act, will be implemented through an unprecedented public-private partnership in order to quickly disburse funds to small businesses through existing banks and lenders, according to SBA Administrator Jovita Carranza and Treasury Secretary Steven Mnuchin. 

WHAT DOES THIS MEAN? We encourage you to first ask your banker if they are an SBA authorized lender. If so, they can discuss the SBA loan options available to you. See a complete list of current SBA lenders in Louisiana, click HERE.

WHEN CAN MY BUSINESS APPLY? We encourage you to download the application NOW and have it ready to submit to an SBA-approved lender starting April 3.

IS THERE OTHER ASSISTANCE AVAILABLE? YES! The SBA has an Economic Injury Disaster Loan as well. You can apply for both if you use them for different expenses or if you do not qualify for the Paycheck Protection Program loans. We also advise all small businesses to talk to your current bank about immediate bridge loan assistance or deferment of existing loan payments. 

About the Paycheck Protection Program 

Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards. 

·    For a top-line overview of the program CLICK HERE 

·    If you’re a lender, more information can be found HERE 

·    If you’re a borrower, more information can be found HERE 


Loan Terms & Conditions 

·    Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries 

·    Maximum loan amount up to $10 million 

·    Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs) 

·    All loans under this program will have the following identical features: 

·    Interest rate of 0.5% 

·    Maturity of 2 years 

·    First payment deferred for six months 

·    100% guarantee by SBA 

·    No collateral 

·    No personal guarantees 

·    No borrower or lender fees payable to SBA 

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