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Keeping American Workers Paid and Employed ACT


The biggest piece of the recent stimulus legislation was the expansion of SBA loans for small business affected by the COVID-19 disaster.  It’s called the PAYCHECK PROTECTION PROGRAM (PPP). This announcement will provide the details of this new program.


  • Loans will be 100% guaranteed by SBA through 12/31/2020.


  • Applies to small businesses; small business defined has having less than 500 employees.


  • Included are Sole – Proprietors, independent contractors and other self- employed as well.


  • Maximum loan amount is $ 10 million through 12/31/2020 and provides a formula by which the loan amount is tied to payroll costs incurred by the business.


  • Allowable uses of the loan include payroll support such as salaries, insurance premiums, mortgage, rent and utility payments.


  • SBA is providing delegated authority to lenders to make determinations of borrower eligibility and credit worthiness without having to go through all the SBA channels.


  • Requires lenders to determine borrower eligibility by determining if a business was operational on 2/15/20 and had employees or independent contractors for whom it paid payroll and payroll taxes or paid contractors. This is in lieu of analyzing a borrower’s repayment ability.


  • It requires borrowers to make a good faith certification that the loan is necessary due to uncertainty of current economic conditions caused by COVID-19 and they will use the funds to retain workers and maintain payroll, lease and utility payments and are not receiving duplicative funds for the same uses from another SBA program.


  • It waives collateral and personal guarantees.


  • The loan period will not be more than 10 years.


  • The maximum interest rate is 4%.


  • Allows a complete deferment of PPP loan repayments for at least 6 months and not more than 12 months.


  • Borrowers shall be eligible for loan forgiveness equal to the amount spent by borrower during an 8 week period after origination date of the loan on payroll costs, interest payments on any mortgage incurred prior to 2/15/20, payment of rent on any lease in force prior to February 15, 2020, payment on any utility for which service began before 2/15/20.


I urge all business owners that have an immediate or projected future need apply for the loan. If you have question’s please email or call my office. I am attaching a direct link to the SBA website here https://www.sba.gov/disaster/apply-for-disaster-loan/index.html After you double click on the link you will need to then double click on the link that says ‘if you are applying for Coronavirus-related assistance, please click here”


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