Paycheck protection program available to employers
The Small Business Administration is offering a Paycheck Protection Program for employers with less than 500 workers.
The program provides small businesses distressed by the Coronavirus (COVID-19) pandemic with funds to pay up to eight weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent and utilities.
Funds are provided in the form of loans that will be forgiven if an employer maintains employee and compensation levels. The program's maximum loan amount is $10 million with a fixed 1-percent interest rate and maturity of two years. Loan payments are deferred for six months.
All businesses – including nonprofits, veterans organizations, tribal business concerns, sole proprietorships, self-employed individuals and independent contractors – with 500 or fewer employees can apply.
Small businesses can apply through their bank, as long as it is an approved SBA lender.
The $349 billion emergency loan program is part of the Coronavirus Aid, Relief, and Economic Security Act (CARES).
An application and fact sheet is available on the city website at www.ShakopeeMN.gov/covid19 under “Business and Employee Resources.”