Loan program is now available to help small businesses keep employees
The Small Business Administration has released terms and conditions for a $349 billion Paycheck Protection Program that will provide relief for small businesses, including some farms.
SBA and the Treasury Department have initiated a mobilization effort of banks and other lenders to provide small businesses with the capital they need. SBA Administrator Jovita Carranza says applications for emergency capital can begin as early as this week, with lenders using their own systems and process to make the loans.
Treasury Secretary Steven Mnuchin says the legislation provides small business job retention loans to provide eight weeks of payroll. The loans will be forgiven if they’re used to keep employees on payroll.
The loan program will be retroactive from February 15, soy employers can rehire recently laid-off employees through June 30.
The economic stimulus package authorized the program.