Paycheck Protection Program Information

Trouble viewing? View this email in your browser.

Fontana California

FOR IMMEDIATE RELEASE

April 1, 2020

Paycheck Protection Program

Paycheck Protection Program

Fontana, Calif.- Through the Paycheck Protection Program, the Small Business Administration will forgive loans if all employees are kept on the payroll for eight weeks, and the money is used for payroll, rent, mortgage interest, or utilities. Apply 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. 

As part of the CARES Act stimulus package, $350 billion was allocated to help small businesses keep workers employed, providing 100% federally guaranteed loans. The Paycheck Protection Program is available until Tuesday, June 30, 2020. 

Below is a step-by-step guide to help businesses apply:

Step 1: Determined Your Eligibility 

You are eligible if you are:

  • A small business with fewer than 500 employees, or that otherwise meets the SBA size standards. The 500-employee threshold includes ALL employees: Full-Time, Part-Time, and any other status.
  • A non-profit organization categorized as a 501(c)(3) with fewer than 500 employees.
  • An individual who operates as a sole proprietor.
  • An individual who operates as an independent contractor.
  • An individual who is self-employed who regularly carries on any trade or business.
  • A Tribal business concern that meets the SBA size standards.
  • A 501(c)(19) Veteran's Organization that meets the SBA size standards.

Click here to review the SBA sizing guidelines: https://www.sba.gov/document/support--table-size-standards

Step 2: Understand the Details and Loan Forgiveness

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

This loan has a maturity of 2 years and an interest rate of .5%.

Step 3: Apply through an existing SBA 7(a) lender or through any federally insured depository institution, credit union, or Farm Credit System that is participating

 Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program. Lenders may begin processing loan applications as soon as Friday, April 3, 2020.

For more information about the Paycheck Protection Program, please visit the U.S. Small Business Administration website here.


###