Small Business Administration: Mobilization effort underway for CARES Act small business loan program
From Delaware Business Now
The U.S. Small Business Administration and Treasury Department announced what was described as a mobilization effort of banks and other lending institutions to provide small businesses with capital.
The CARES Act establishes a new $349 billion Paycheck Protection Program. The Program will provide relief to millions of small businesses, a release stated.
“This unprecedented public-private partnership is going to assist small businesses with accessing capital quickly. Our goal is to position lenders as the single-point-of-contact for small businesses – the application, loan processing, and disbursement of funds will all be administered at the community level,” said SBA Administrator Jovita Carranza. “Speed is the operative word; applications for the emergency capital can begin as early as this week, with lenders using their own systems and processes to make these loans. We remain committed to supporting our nation’s more than 30 million small businesses and their employees so that they can continue to be the fuel for our nation’s economic engine.”
The new loan program will help small businesses with their payroll and other business operating expenses.
It will provide capital to businesses without collateral requirements, personal guarantees, or SBA fees.
All loan payments will be deferred for six months. The SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest.
Visit SBA.gov/Coronavirus for more information on the Paycheck Protection Program.