Urges Arkansas Small Businesses to Apply for Relief
WASHINGTON—U.S. Senator John Boozman (R-AR) applauded the Small Business Administration’s (SBA) swift implementation of the Paycheck Protection Program, which authorizes lending institutions to quickly make loans to small businesses to help them remain operational during coronavirus outbreak.
The $349 billion program was included in the Coronavirus Aid, Relief and Economic Security (CARES) Act passed by Congress, and signed into law by President Trump, last week. It provides low-interest loans to small businesses to use for payroll, mortgage interest, rent and utilities, with a portion of the loan eligible for forgiveness. This program is crucial to help small businesses remain afloat despite the financial hardships caused by the coronavirus.
“Over 99 percent of Arkansas businesses are small businesses, and perhaps no one has been impacted more by the economic fallout caused by the coronavirus. The Paycheck Protection Program provides critical aid that will allow small businesses to stay in operation and keep employees on the payroll as we all weather this storm. There is an urgent need for these funds, and I encourage Arkansas businesses to apply for this assistance,” Boozman said.
“Our team here in Arkansas is working at a record setting pace to help bring lenders up online and prepare for a full implementation for the Paycheck Protection Program. This is an unpresented time where the federal government is working seamlessly with industry to help maximize availability of credit to our small businesses,” said Edward Haddock, district director for the Arkansas District Office of the SBA.
Paycheck Protection Program Highlights:
- The program is retroactive from Feb. 15, 2020, so employers can rehire recently laid-off employees through June 30, 2020.
- Eligible recipients may qualify for a loan up to $10 million.
- Loan payments will be deferred for six months.
- PPP loans can cover payroll, mortgage interest, rent and utilities.
- For small businesses that maintain their workforce, SBA will forgive the portion of the loan used to cover the first eight weeks of payroll and certain other expenses.
How to get a Paycheck Protection Program Small Business Loan
Q: How can I apply?
SBA has approved lenders that process small business loans. Talk with your bank to see if it is participating in the program or find top SBA approved lenders here.
Q: When can I apply?
Small businesses and sole proprietors can apply beginning April 3, 2020. Starting April 10, 2020 independent contractors and self-employed individuals can apply.
Q: Does my business qualify?
Small businesses with 500 or fewer employees—including 501(c)(3) nonprofits, veterans organizations, self-employed individuals, sole proprietorships and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries.