(NOTE: The following information is being released on behalf of the U.S. Small Business Administration.)
The federal CARES Act establishes a new $349 billion Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed.
The new loan program will help small businesses with their payroll and other business operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees, or SBA fees – all with a 100% guarantee from SBA. All loan payments will be deferred for six months. Most importantly, 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.
The Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed. Visit SBA.gov/Coronavirus for more information on the Paycheck Protection Program.
The new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.
SBA’s announcement follows a series of steps taken by the Agency since the President’s Emergency Declaration to expeditiously provide capital to financially distressed businesses affected by the Coronavirus (COVID-19) pandemic. Since March 17, SBA has taken the following steps:
Visit SBA.gov/Coronavirus for more information on SBA’s assistance to small businesses.
For COVID-19 updates and resources from the City of Santa Ana, go to www.santa-ana.org/covid19; follow @CityofSantaAna on Facebook, Instagram and Twitter; sign up to receive email and text alerts at Nixle.com; download the mySantaAna app; and join Nextdoor.com to connect with neighbors and get City news.