I wanted to share some information about the new $350 billion Paycheck Protection Program. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

Dear ,

I wanted to share some information about the Small Business Administration’s (SBA) new $350 billion Paycheck Protection Program (PPP).

The program officially launched last Friday, and I know many businesses and lenders have questions about how this program will function, and some have even reached out to me about the hurdles and delays they've encountered. I want to ensure you that I am doing everything I can to push the Trump administration to deliver those answers quickly and efficiently and ensure that relief gets to our small businesses, which are the backbone of our communities. The success of this program is critical.

Image Image

Paycheck Protection Program

The PPP, which is available to eligible businesses through June 30, 2020, provides eight weeks of cash-flow assistance. Eligible small businesses include:

  • Any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization 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 industry size standards; and
  • 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.

Under the terms and conditions of the PPP, loans can be fully forgiven if 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). 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. 

Eligible businesses are encouraged to apply as quickly as possible because there is a funding cap and lenders need time to process your loan. 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.

  • Starting April 3, small businesses and sole proprietorships can apply for PPP loans through existing SBA lenders.
  • Starting April 10, independent contractors and self-employed individuals can apply for PPP loans through SBA lenders.

You should consult with your local lender as to whether it is participating in the program. Click here for a list of the 100 most active SBA 7(a) lenders.

Click here for the application form.

For more information:

The SBA advises businesses to contact local offices for any assistance you may need. You can find local offices here.

Looking Ahead

I will be sure to provide updates as information becomes available. If you have any additional questions or need any assistance, please contact me through my website at defazio.house.gov.

Sincerely,

Image

Peter DeFazio

*By participating in this survey, you will be subscribed to Rep. DeFazio's newsletter.
Click here to unsubscribe.
Please DO NOT reply to this email. It is sent from an unmonitored account.