Forgivable loans for small businesses affected by COVID-19 available Friday

Forgivable loans for small businesses affected by COVID-19 available Friday”

Lt. Governor Garlin Gilchrist II was joined by former Lt. Governor and current president of the Small Business Association of Michigan Brian Calley along with president and CEO of the Michigan Association of CPA's Bob Doyle to launch a new statewide website, to give businesses key resources to assist with the PPP application and loan process and while making sure the greatest amount of federal funding is able to be used by small businesses for economic relief efforts throughout the state, according to a statement from Whitmer's administration.

Banks, credit unions and SBA lenders are all allowed to lend under the program. Bankers say they that program could be depleted quickly. The application will be available Friday.

The massive program, approved by Congress less than a week ago, has put major strains on the Small Business Administration, a low-profile agency known for its methodical approach to government-guaranteed loans for small firms. After Stein explained to him where to find it, the representative told Stein the bank wasn't accepting applications and that he should keep checking his online account for guidance in the coming hours and days, Stein said. "Please go back to them because they're your core bank and they know you the best and can process you the fastest", he said. Not only that, but thousands of their employees are either sick or quarantined because of the virus. The $350 billion segment of the $2 trillion coronavirus fiscal stimulus package signed into law last month was created to give the small and medium-sized enterprises a nice low-interest (0.5 percent) loan to tide them through the crisis. All loan payments will be deferred for six months and the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities and mortgage interest.

But for now, business owners who wait or have problems filing their applications might lose out to larger applicants, said Veronique de Rugy, a research fellow at George Mason University.

Congress made the program as wide as possible. The loan forgiveness can be reduced if a small business owner decreases their full-time employee headcount, decreases salaries or wages by more than 25 percent for any employee that made less than $100,000 annually or rehires full-time employees by June 30 for changes made between February 15 and April 26.

All businesses - including nonprofits, veteran's organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors - with 500 or fewer employees can apply. By then, banks could be overwhelmed with applications.

More news: Scott Morrison says Australia is in ‘suppression phase’ of Covid-19 battle

The administration said PPP loans will be awarded on a first come first serve basis with funding caps in place.

Since this money is going directly to small businesses across the country, and since it's mostly flowing through small community banks it is significantly boosting communities and main street across the country rather than Wall Street.

"I'm certain that's what's going to happen", said Lauren Friel, the owner of a wine bar in Somerville, Massachusetts, that has been closed for three weeks.

Ryan J. Foley reported from Iowa City, Iowa.

"If you want to get this loan, speed is your friend", Feldman told 2,000 franchise industry officials on a conference call this week. Ken Sweet and Joyce Rosenberg reported from NY.

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