The U.S. Small Business Administration Utah District office has geared up to help Utah small-business owners navigate through the process of obtaining help from the agency’s $349 billion Paycheck Protection Program that was created by the Coronavirus Aid, Relief and Economic Security Act (CARES).
“Across Utah, business owners, employees and their families are doing their part to slow the spread of COVID-19 to 'flatten the curve'. This unprecedented time has understandably, created uncertainty for many business owners and workers,” said Marla Trollan, SBA Utah District director.
The Paycheck Protection Program provides forgivable loans up to $10 million to small businesses left financially distressed by the coronavirus (COVID-19) pandemic. The loans, which will be administered at the local level by a national network of banks and credit unions, are designed to maintain the viability of millions of small businesses struggling to meet payroll and day-to-day operating expenses.
“That’s why the SBA Utah District Office is working to make it as easy as possible for small businesses to apply for funding and get the information they need to make sound decisions. The Paycheck Protection Program is an opportunity for Utah small-business owners to access the much-needed financial support for their small businesses and their workers, in order to help them get through this tough time,” Trollan said.
The loans, which are 100 percent backed by SBA, are being provided to small businesses without collateral requirements, personal guarantees, SBA fees or credit-elsewhere tests. Those eligible for the program include small businesses, certain nonprofits, veterans’ organizations, self-employed individuals, independent contractors, and other businesses meeting size standards based on their North American Industry Classification System code.
The Paycheck Protection Program’s maximum loan amount is $10 million with a fixed 1 percent interest rate and maturity of two years. The loans are available to cover up to eight weeks of average monthly payroll (based on 2019 figures) plus 25 percent and payments are deferred for six months (interest does accrue). The SBA will forgive the portion of loan proceeds used for payroll costs and other designated operating expenses for up to eight weeks, provided at least 75 percent of loan proceeds are used for payroll costs.
Eligible expenses for the eight-week forgiveness include payroll costs, including salary, commissions, tips, certain employee benefits including sick leave and healthcare premiums and state and local taxes; mortgage interest and rent payments on mortgages and leases; and utilities such as electricity, gas, water, transportation, phone and Internet.
Trollan encouraged small-business owners to visit www.SBA.gov/coronavirus for additional information about the Payroll Protection Program.
