Keeping American Workers Paid and Employed ACT

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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 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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