SBA Loan Applications Opens April 3rd
Starting Friday, April 3rd businesses with fewer than 500 employees, including sole proprietors, private nonprofit organizations and veterans organizations, may apply for forgivable .5% interest loans of up to $10 million. Beginning April 10, independent contractors and self-employed individuals may apply for funds.
How to apply
Small business owners should work with their lender or their local SBDC director to guide them through the process.
Can be done through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. The SBA is quickly certifying new lending institutions so contact your local lender to make sure they are participating in this program, and have your questions answered with
Loan forgiveness
- The SBA will forgive loans if the funds are used to cover payroll costs, including benefits, rent, mortgage interest and utilities for eight weeks after the loan is made and all employee and compensation levels are maintained. Due to likely high subscription, at least 75% of the forgiven amount must be used for payroll.
- Retroactive to Feb. 15, employers may rehire recently laid-off employees through June 30 to qualify for a forgivable loan.
- Forgiveness will be reduced if the number of full-time employees declines or if salaries and wages decrease.
- Loan payments will be deferred for six months, and the loan has a two-year term.