Following President Trump’s signing of the historic Coronavirus Aid, Relief, and Economic Security (CARES) Act, SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin announced that the SBA and Treasury Department have initiated a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need.
The 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 http://www.
- 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.
- Attached are the Payroll Protection Program loan related documents, along with a fact sheet on the program.
Loan Terms & Conditions
- Eligible businesses: All small businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
- Maximum loan amount up to $10 million
- Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
-
All loans under this program will have the following identical features:
- Interest rate of 0.5%
- Maturity of 2 years
- First payment deferred for six months
- 100% guarantee by SBA
- No collateral
- No personal guarantees
- No borrower or lender fees payable to SBA
SBA’s announcement comes on the heels of 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.
Related Stories
Healthcare Facilities | Sep 8, 2023
Modern healthcare interiors: Healing and care from the outside in
CO Architects shares design tips for healthcare interiors, from front desk to patient rooms.
Codes and Standards | Jul 19, 2023
Office leasing in major markets by financial services firms rebounds to pre-pandemic norms
Though the pandemic led to reductions in office leasing by financial services firms in gateway markets, a recent report by JLL found a notable leasing resurgence by those firms.
Multifamily Housing | Jun 29, 2023
5 ways to rethink the future of multifamily development and design
The Gensler Research Institute’s investigation into the residential experience indicates a need for fresh perspectives on residential design and development, challenging norms, and raising the bar.
Office Buildings | Jun 28, 2023
When office-to-residential conversion works
The cost and design challenges involved with office-to-residential conversions can be daunting; designers need to devise creative uses to fully utilize the space.
Arenas | May 18, 2023
How can we reimagine live sports experiences?
A Gensler survey finds what sports fans' experiences have been like returning to arenas, and their expectations going forward.
Headquarters | May 15, 2023
The new definition of Class A property
Dan Cheetham, Managing Director and Founder of FYOOG, believes organizations returning to a "hub and spoke" model could have a profound effect on properties once considered Class B.
Office Buildings | May 5, 2023
9 workplace design trends for 2023
HOK Director of WorkPlace Kay Sargent and Director of Interiors Tom Polucci discuss the trends shaping office design in 2023.
Multifamily Housing | Apr 4, 2023
Acing your multifamily housing amenities for the modern renter
Eighty-seven percent of residents consider amenities when signing or renewing a lease. Here are three essential amenity areas to focus on, according to market research and trends.
Urban Planning | Mar 16, 2023
Three interconnected solutions for 'saving' urban centers
Gensler Co-CEO Andy Cohen explores how the global pandemic affected city life, and gives three solutions for revitalizing these urban centers.
Laboratories | Mar 9, 2023
5 laboratory design choices that accelerate scientific discovery
Stephen Blair, director of CannonDesign's Science & Technology Practice, identifies five important design strategies to make the most out of our research laboratories.
