Starting tomorrow, April 3, 2020, the Small Business Administration (SBA) will begin accepting applications for the Paycheck Protection Program, part of the CARES Act. This is a key program of the CARES Act meant to help businesses keep their employees on payroll for at least the next 8-weeks by providing forgivable loan funds that can be used for payroll, group health benefits/insurance premiums, rent/mortgage payments, utilities, and interest on any certain debt obligations. Practically all small businesses with fewer than 500 employees, both for profit and nonprofit, are eligible for this program, including self-employed and independent contractors. Applications must be facilitated through your financial institution (bank, lender, credit union).
PLEASE NOTE: While this program is technically active at the Federal level, banks, lenders and credit unions are still awaiting clarifying information, rules and details about this program from the SBA before they can begin collecting and reviewing applications. It is wise to begin engaging your financial institution about the best options for your small business now, but also important to be patient and understanding that this is a rapidly evolving situation that requires significant amounts of clarity before loans can be administered.
