Updated Information on the SBA Paycheck Protection Loan Program:
An Important Program Available to Many MPMA Members
There has been no shortage of news updates and alerts issued from MPMA over the past four weeks, but we wanted to make sure members are aware of a SBA federal loan offering called the Paycheck Protection Program that many of our members could qualify for.
This is an update to an article we ran a couple of days ago with new guidance issued by the Department of Treasury just late last night.
The Paycheck Protection Program provides small businesses with funds to pay payroll costs and other operating costs like interest on mortgages, rent and utilities.
1) This program is available to small businesses. Qualifying as a small business is governed by the SBA with the use of NAICS codes here. Your local banker, SBA, DEED and the Association office can help you navigate this question.
2) Funds provided by this loan can be 100% FORGIVEN when used to keep employees employed through payroll costs and paying some operating costs.
3) Maximum loan amounts are determined by taking 250% your average monthly payroll costs, up to $10,000,000.
4) Loans are at a low .5% interest rate with six months of payment deferment.
5) Applications begins today, April 3, 2020. Apply as soon as possible because there is a funding cap.
6) Seek advice how this program may affect other federal and state programs that are offered.,
See the latest update here from the U.S. Department of the Treasury.
Your first step is to see your local banker and begin the process of applying for this program.
A list of participating lenders can be found here. All loans will have the same terms regardless of the lender. Note: We have been told that this type of SBA loan process will be easy and quick. It should be different than other SBA loan processes you may have dealt with in the past.
If you have need for further guidance, see MN DEED here and as always, please call the Association office with any questions at (800) 864-3813.