Apply Now! The Best Financial Relief Program for Small Businesses

Relief for Small Businesses

In a small town, building a business is a constant struggle. Keeping the “lights on” among big box retailers and online giants is tough enough without the current pandemic we face today.

For many mom and pop shops in Southeast Colorado, the loss of business due to closures caused by the coronavirus no longer has to mean an end to our beloved-small-town-commercial-institutions.

Starting today (April 3, 2020), small businesses across the country can apply for the Paycheck Protection Program available under the CARES Act passed by Congress. For small businesses who qualify, this could be one of the best programs available for financial relief.

Forgivable Loans

Through the Paycheck Protection Program, administered by the Small Business Administration, participating small businesses could essentially receive a forgivable loan to help cover payroll costs, rent, utilities, and mortgage interest for eight weeks as long as they keep workers employed.

Forgiveness of the loan does come with stipulations and all businesses applying should carefully read all the details behind the program before applying.

While this program may not solve all the issues small businesses are struggling to overcome, it is a start to help us begin to rebuild in the troubling times we face as a nation.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $349 billion to help small businesses keep workers employed during the coronavirus pandemic. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses that maintain their payroll for eight weeks following their loan approval.

These loans or a portion of the loan may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls before June 30, 2020.

With $349 Billion in Emergency Small Business Capital Cleared, SBA and Treasury Begin Unprecedented Public-Private Mobilization Effort to Distribute Funds

WASHINGTON – 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 today 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.

Eight Weeks of Payroll Protection

The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed.

“This legislation provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed,” said Secretary Mnuchin. “Treasury and the Small Business Administration expect to have this program up and running by April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day.  The loans will be forgiven as long as the funds are used to keep employees on the payroll and for certain other expenses.”

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 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.

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 1%
    • 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. Since March 17, SBA has taken the following steps:

Visit for more information on SBA’s assistance to small businesses.

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