Small Businesses Can Apply For Emergency SBA Loans Corning Observer

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Following President Trump’s signing of the landmark Coronavirus Aid, Relief and Economic Security (CARES) Act, Small Business Administration (SBA) Administrator Jovita Carranza and Secretary of the Treasury Steven T. Mnuchin announced Tuesday that the SBA and the Treasury Department have launched a strong mobilization effort. banks and other credit institutions to provide small businesses with the capital they need.

In addition, and in accordance with an executive order issued by Governor Newsom to extend tax breaks to small business taxpayers, the California Department of Tax and Fee Administration (CDTFA) announced on Tuesday that all small businesses in the state will have three months. to file their declarations. declarations and pay taxes administered by the department.

The CARES Act establishes a new $ 349 billion paycheck protection program that will provide much-needed relief to millions of small businesses so they can support their operations and keep their workers employed.

“This unprecedented public-private partnership will help small businesses with quick access to capital. Our goal is to position lenders as the single point of contact for small businesses – application, loan processing and disbursement of funds will all be administered at the community level, ”Carranza said. “Speed ​​is the key word; emergency capital requests 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 country’s more than 30 million small businesses and their employees, so they can continue to be the fuel of our country’s economic engine.

Mnuchin said the legislation provides for small business retention loans to provide eight weeks payroll and some overhead to keep workers employed.

“The Treasury and Small Business Administration expect this program to be up and running by April 3 so businesses can approach a participating SBA 7 (a) lender, bank or credit union,” apply for a loan and be approved the same day. . The loans will be canceled as long as the funds are used to keep employees on payroll and for certain other expenses, ”he added.

The new loan program will help small businesses pay their payroll and other operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees or SBA fees – all with a 100% guarantee from the SBA, according to Carranza.

He said all loan payments will be deferred for six months and the SBA will write off the portion of the loan proceeds used to cover the first eight weeks of salary costs, rent, utilities and mortgage interest.

The Paycheque Protection Program is specially designed to help small businesses keep their workforce employed.

Visit SBA.gov/Coronavirus for more information on the Paycheck Protection Program.

Details of the program:

The new loan program will be available retroactively from February 15, 2020, so employers can rehire their recently laid-off employees until June 30, 2020.

Loan conditions :

– Eligible businesses: all businesses, including non-profit organizations, veterans organizations, tribal businesses, sole proprietorships, self-employed, and independent contractors, with 500 employees or less, or no more than the number of employees defined by the SBA as the size standard for certain industries.

– Maximum loan amount up to $ 10 million.

Loan cancellation if the proceeds are used for salary costs and other designated business operating expenses within eight weeks from the date of loan granting (due to likely high underwriting it is expected that no more than 25 per cent of the amount canceled can be used for wage costs).

For more details, information and help on the program, visit online SBA.gov/Coronavirus.

More information on the state’s small business tax relief program can be found online at www.cdtfa.ca.gov/services/.


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