SBA Paycheck Protection Program Overview
- The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
- SBA 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.
- The Paycheck Protection Program will be available through June 30, 2020.
Who Can Apply
- This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organizations or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
- Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
- Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible.
How to Apply
- You can 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. 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 April 3, 2020.
Loan Details and 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). 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.
- 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.
- This loan has a maturity of 2 years and an interest rate of .5%.
- If you wish to begin preparing your application, you can download a sample form to see the information that will be requested from you.
The U.S. Small Business Administration’s West Virginia District Office and the West Virginia Small Business Development Center will host trainings on the Economic Injury Disaster Loan program, Economic Injury Disaster Loan Advance, and the Paycheck Protection Program.
Due to the high volume of questions our office is receiving, we recommend you attend one of these trainings before calling our district office. The trainings will be held on a regular basis. Registration is not required however sessions are limited to the first 100 participants. If the session is full please join a session at another time.
- Wednesday, April 1, 2020 at 2 p.m.
- Thursday, April 2, 2020 at 10 a.m. and 2 p.m.
- Friday, April 3, 2020 at 10 a.m. and 2 p.m.
Training log on information
- Meeting Link: (copy the link to your browser)
- Meeting Phone: 646-876-9923
- Meeting ID: 498 988 675#
- Participant Number: #
- Presentation: https://www.sba.gov/offices/district/wv/clarksburg/resources/west-virginia-small-business-training-opportunities
- Registration is not required however sessions are limited to the first 100 participants.
- If the session is full please join a session at another time.
- If you have trouble accessing the trainings or website, copy the links and paste them into your browser.
- You may also contact SBA’s Disaster Assistance Center at 800-659-2955 or via email at firstname.lastname@example.org, if you have a question regarding your EIDL application.
– HashtagWV #124. April 2020.