SPECIAL COVERAGE ON THE CORONAVIRUS
The Deadline to Apply for SBA Loan is Tomorrow: What You Need To Know
By Greg Lane, Hingham Current Staff, Posted: June 29, 2020
The Small Business Administration (SBA)'s Paycheck Protection Program is currently accepting applications from local businesses and non-profits until June 30th. The loans can can be used for a variety of bills, like payroll and accounts payable, that cannot be paid due to the impact of COVID-19.
To keep payments affordable for small businesses and non-profits, SBA offers the loans with a 3.75 percent interest rate for businesses and 2.75% rate for non-profits as well as long repayment terms, up to a maximum of 30 years. Plus, the first payment is deferred for one year.
These PPP loans have relatively favorable terms for borrowers, according to South Shore Bank. And, in the event of bankruptcy, the loans can generally be discharged, they said. However, they encourage borrowers to monitor rule changes implemented by the SBA before submitting a forgiveness application.
To meet the unprecedented need, the SBA has made numerous improvements to the application and loan closing process, including deploying new technology and automated tools,” said SBA Administrator Jovita Carranza.
In an effort to assist small businesses and non-profits, the Federal Reserve Bank of Boston has created a web page with resources to aid them in applying to this program.
The resource page includes:
An info sheet describing the program
Links to other resources including program information and loan applications in 19 languages
A list of technical assistance providers indicating they are able to help small businesses/nonprofits apply for the PPP
A list of financial institutions that are able to process PPP loans for non-customers
You can visit the page here: https://www.bostonfed.org/in-the-region/covid-19-resources/paycheck-protection-program.aspx
The Paycheck Protection Program, created by the CARES Act legislation enacted in March, updated the disaster loan program to
provide emergency grants of up to $10,000 to small businesses. The Small Business Administration, which administers the loans, has approved nearly $630 billion in combined funding for businesses since the crisis began. Frequently Asked Questions for Lenders and Borrowers for the Paycheck Protection Program can visit https://www.sba.gov/document/support-faq-lenders-borrowers.