flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

SBA and Treasury begin effort to distribute $349 billion in emergency small business capital

Coronavirus

SBA and Treasury begin effort to distribute $349 billion in emergency small business capital

The new loan program will help small businesses with their payroll and other business operating expenses.


By National Electrical Construction Association | April 2, 2020
100 dollar bills

Courtesy Pixabay

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.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.
  • 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

AEC Tech | Nov 12, 2020

The Weekly show: Nvidia's Omniverse, AI for construction scheduling, COVID-19 signage

BD+C editors speak with experts from ALICE Technologies, Build Group, Hastings Architecture, Nvidia, and Woods Bagot on the November 12 episode of "The Weekly." The episode is available for viewing on demand.

Coronavirus | Nov 9, 2020

Even now, marketing is not a four-letter word

As AEC firm leaders consider worst-case scenarios and explore possible solutions to surmount them, they learn to become nimble, quick, and ready to pivot as circumstances demand.

Coronavirus | Nov 5, 2020

Thornton Tomasetti releases 'Healthy Reentry' free software to aid safe office return

Open source app provides customizable health reporting and contact tracing capabilities.

Multifamily Housing | Oct 30, 2020

The Weekly show: Multifamily security tips, the state of construction industry research, and AGC's market update

BD+C editors speak with experts from AGC, Charles Pankow Foundation, and Silva Consultants on the October 29 episode of "The Weekly." The episode is available for viewing on demand.

Coronavirus | Oct 19, 2020

Flexible design helped the University of Kansas Strawberry Hill Behavioral Health Hospital adapt to the coronavirus

The University of Kansas Strawberry Hill Behavioral Health Hospital had been open for just over six months when it was faced with the global coronavirus pandemic.

Coronavirus | Oct 14, 2020

Altering facilities for a post-COVID-19 world

There are several possibilities when it comes to reconfiguring or adjusting a space to maintain the health and safety of workers, from reorganizing spaces to enable social distancing measures to full teardown and reconstruction of a plant.

Coronavirus | Oct 8, 2020

The Weekly show: Statue of Liberty Museum, emotional learning in K-12, LA's climate change vulnerability

The October 8 episode of BD+C's "The Weekly" is available for viewing on demand.

Coronavirus | Oct 7, 2020

AIA releases 3D models, strategies for reducing risk of COVID-19 in polling places

Awards program highlights trends in healthcare facility designs.

boombox1
boombox2
native1

More In Category


MFPRO+ Special Reports

Top 10 trends in affordable housing

Among affordable housing developers today, there’s one commonality tying projects together: uncertainty. AEC firms share their latest insights and philosophies on the future of affordable housing in BD+C's 2023 Multifamily Annual Report.



halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021