Important information regarding disaster relief funding
Congress passed and President Trump signed the Coronavirus Aid, Relief & Economic Security (CARES) Act making firms with fewer than 500 employees immediately eligible for financial aid from the US Government.
One of the primary components of the new law — the Paycheck Protection Program (PPP) — provides “loans” to small businesses who maintain their payroll during the health crisis. These “loans” will be FORGIVEN for employers who maintain employment through and after the pandemic (subject to certain generous spending limitations.)
The PPP is open to corporations, S-corps, LLCs, partnerships, sole proprietorships, and independent contractors. 501(c)(3) organizations with fewer than 500 employees are also eligible. You do not have to have a current SBA loan and you qualify for PPP even if you qualify for conventional lending. You can apply for funding equal to 2 ½ months of payroll up to a maximum of $10 million. The funding can be used for payroll, employee healthcare, working capital and other expenses.
More good news!
• If you have an existing SBA Loan, the SBA will pay the next six months of principal and interest beginning with the April 2020 payment. This applies to all existing SBA Loans under the 7A and 504 Loan Programs.
• And, if you were thinking about an SBA loan for capital expansion or other purposes, size limitations on the popular SBA Express loan program have also been increased from $350,000 to $1 million for the balance of 2020.
The U.S. Small Business Administration (SBA) is expected to release the details and guidelines for these loans shortly. Please complete the form below to be notified when we start accepting applications.
Loans subject to SBA requirements. All loans subject to credit approval. Origination and/or other fees may apply.
How can we help you today?
Complete the form to be connected with the Customers Bank Government Guaranteed Lending team.