Treasury, SBA provide information on new small-business loan program | TheHill - The Hill

Treasury, SBA provide information on new small-business loan program | TheHill - The Hill


Treasury, SBA provide information on new small-business loan program | TheHill - The Hill

Posted: 31 Mar 2020 11:52 AM PDT

The Treasury Department and Small Business Administration (SBA) said Tuesday that they have launched an effort to mobilize banks and other lenders to distribute small-business loans authorized by the coronavirus relief law President TrumpDonald John TrumpIllinois governor says state has gotten 10 percent of medical equipments it's requested Biden leads Trump by 6 points in national poll Tesla offers ventilators free of cost to hospitals, Musk says MORE signed last week.

The coronavirus relief package created a nearly $350 billion program under which businesses with 500 or fewer employees can receive loans of up to $10 million. The loans will be forgiven if businesses use the funds to cover payroll costs and other operating expenses in the eight weeks following loan origination.

Treasury and the SBA both have launched webpages with information about the program. The SBA's webpage includes a link to the application form for borrowers and fact sheets about the program for both lenders and borrowers.

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Tuesday's announcement comes after Mnuchin said Monday that he hoped documents about the program would become available that day. Mnuchin reiterated on Tuesday that he expects businesses to be able to start to apply for and receive loans on Friday.

"This legislation provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed," Mnuchin said in a statement. "Treasury and the Small Business Administration expect to have this program up and running by April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day."

Treasury's fact sheet for borrowers states that small businesses and sole proprietorships will be able to start applying for loans on Friday through existing SBA lenders, and self-employed people and independent contractors will be able to start applying for loans through existing SBA lenders on April 10. Other lenders will be able to start to make loans through the program once they are approved.

"This unprecedented public-private partnership is going to assist small businesses with accessing capital quickly," SBA Administrator Jovita Carranza said. "Our goal is to position lenders as the single point-of-contact for small businesses – the application, loan processing, and disbursement of funds will all be administered at the community level."

The small-business loan program is one of several aspects of the new coronavirus relief law that Treasury has been providing information about in recent days. Other areas of the package that Treasury has been working to implement include direct payments to individuals, a new tax credit designed to encourage businesses to retain their workers and aid to the airline industry.

Updated at 3:17 p.m.

Small Business Administration Hosts Teleconference - Patch.com

Posted: 31 Mar 2020 12:04 PM PDT

ROUND ROCK, TX —Amid the COVID-19 pandemic, communities are struggling to keep small businesses afloat, and employers and employees are looking for ways to have a better understanding for what uncertainties are still ahead. Despite this, many small businesses forge ahead and look to be proactive and find ways to continue providing services to their customers.

The Round Rock Chamber of Commerce invites business owners to join Congressman John Carter and the Small Business Administration for a teleconference meeting scheduled Wednesday, April 1 at 3:20 p.m. Business owners will have an opportunity to ask questions directly to the Small Business Administration about disaster loans and other options available amid the coronavirus pandemic. To register click HERE.

City council passes Small Business Administration Loan Fund - Montrose Daily Press

Posted: 31 Mar 2020 08:15 PM PDT

Montrose City Council met on March 31 for a virtual meeting. One of the primary items of discussion was consideration of a small business administration loan fund.

Orders from the governor amid the COVID-19 outbreak have meant many businesses have either been mandated to close down or have seen significant decreases in revenue. The assistance program, which has three parts, was discussed at Monday's work session as a way to help small local businesses survive financially until the pandemic has passed.

The Montrose Small Business Emergency Loan Fund is available for businesses who were required to close due to the governor's order. Up to $5,000 will be available per business, with no interest or closing costs, as well as 12 months of no repayment. Applications will be selected based on need.

A sales tax deferral is available for businesses with $2 million or less in gross annual revenue. While the businesses will not need to pay sales tax remittance for 90 days, they will still be required to report monthly.

Cooperative marketing grants will also be available to businesses that work in groups of three. The city will pay up to $1,000 of marketing expenses for the three-business groups, and groups will be selected based on need and "ability to work together as a business community."

The funds for the assistance program will come out of the existing Greater Montrose Opportunity Loan Fund, Downtown Opportunity Loan Fund, and remaining DDA

Operational Account monies. The loan program will begin with $300,000 to distribute to businesses in need.

"We really think $300,000 would be a great place to start, it's already sitting in our accounts… it's just putting money that's already there toward its intended purpose," City Manager Bill Bell said.

City council also discussed the selection process, and decided that because the application gives businesses the opportunity to give details on their situation, recipients of the loan will be selected based on need.

"When we're reviewing the applications, we'll be comparing financial statements from last year to what they have coming in at this time," Director of Business Innovation Chelsea Rosty said.

While city council acknowledged that the program will not be perfect, it is a solution to assist businesses through the pandemic.

"For tonight, this is a great step forward to help our community," council member Roy Anderson said.

The motion to establish the program was passed unanimously, and applications will be open starting on April 1. More information can be found at cityofmontrose.org/covid19 under Business Resources.

"Hopefully it will be helpful to our small businesses in town, and hopefully we can make a difference," said Mayor Pro-Tem Barbara Bynum. "I'm excited to move this program forward for our small businesses."

In other news, discussion took place about financing of the new police department building and whether to postpone the vote due to shifts in interest rates due to the pandemic. City council decided to vote at the meeting, and the motion was unanimously passed on second reading with a four percent interest rate.

Judy Ann Files also delivered her final comments as a council member.

"I'm taking the opportunity to say thank you to all of you. This has been an amazing ride for me," Files said. "I never could've imagined my last meeting could've been me, sitting by myself in my living room. But I think it's for the best."

The next regular city council meeting will take place April 21. An open public meeting will also take place on April 13 with city council as well as any newly-elected council members.

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