Sen. Rounds Updates Members About New Paycheck Protection Program.
Senator Rounds hosted a teleforum with the Small Business Administration to answer questions about the new federal Paycheck Protection Program. To listen to the teleforum, click here.
A representative from the SBA laid out the details of the program: to quality, you have to have less than 500 employees. Independent contractors and self employed South Dakotans also quality as well as veteran’s organizations and non-profits including churches. Also clarified over the weekend: hospitality and food industry with more than one physical location do qualify for the program.
The maximum loan is determined by the small business’ average monthly pay roll times 2.5. Payroll support, employee salaries, pad sick leave, insurance, mortgage rent and utilities are all covered under the PPP program, which is a public private partnership to get working capitol to small business as soon as possible. The small businesses that apply will be required to write a statement on why the economic uncertainty from coronavirus requires support to make it through the virus. There are no borrower or lender fees and no collateral, personal fees or early payment. Maturity of loan is 2 years and is 100% guaranteed by the federal government. Payments will be deffer-ed for 6 months and some small business will be eligible for loan forgiveness. The SBA told small businesses that this is a $349 billion dollar program that’s 10 days old and they are still working out the details.
Senator Rounds told South Dakota small businesses owners that what happened over the weekend was encouraging, and that while the start to the program was slow the SBA kept going and that right now, several hundred loans have been approved.
“I’d like to thank Senator Rounds for taking the time this morning to update our small business owners on the resources available to them during this crisis. According to a recent NFIB survey, about half of small employers say they can’t survive for more than two months without some sort of financial help,” said Lindsey Riter Rapp, NFIB State Director in South Dakota. “South Dakota small business owners are anxious, scared and worried about the long term impact from the virus. That’s why it’s so important they get the information they need to apply for federal and state loans and grants. Thanks, Senator Rounds, for helping our South Dakota small business owners get the help they need to weather through this unprecedented crisis.”
For the latest information on what Congress is doing to help small businesses, including a side by side comparison of the federal loans available for small business, visit NFIB’s website here.
