Information provided by the Economic Development Corporation of San Benito County.
In an April 7 press release, the Economic Development Corporation of San Benito County provided info on the the Paycheck Protection Program (PPP), which could provide small businesses with funds to pay up to eight weeks of payroll costs, including benefits. Funds can be used to pay interest on mortgages, rent and utilities.
According to the release, the terms of the program include:
Fully Forgiven: Funds are provided in the form of loans that are fully forgiven when used for payroll costs and other eligible costs. Loan payments will be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Must Keep Employees on the Payroll, or Rehire Quickly: Loan 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.
All Small Businesses are Eligible: Small businesses with 500 or fewer employees—including nonprofits, veteran’s organizations, self-employed individuals, sole proprietorships, and independent contractors—are eligible. Businesses with more than 500 employees are eligible in certain industries.
When to Apply: Small businesses and sole proprietorships can apply now. Starting April 10, independent contractors and self-employed can apply.
How to Apply: Contact your lender to apply for this program. Some lenders are not participating or only participating with current clients. Large lenders accepting new clients include Bank of America and Morgan Stanley. The Small Business Administration has a list of participating lenders by zip code, but many of these may only be accepting current clients. The lender list as well and other information and full loan terms can be found at www.sba.gov. There are many online lenders that are doing these loans. Please note, these lenders have not been vetted by our organization, and you may need to research them if your best option is to consider an online lender. Online Lenders include: