Part of the $350 billion Coronavirus Aid, Relief, and Economic Security Act is dedicated to serving small businesses affected by the ongoing coronavirus pandemic and economic downturn, and businesses can now start applying for loans, according to the U.S. Chamber of Commerce.
The national chamber is touting a key part of the legislation, the Paycheck Protection Program, which provides federally guaranteed loans to qualifying small businesses who maintain their payroll during the pandemic.
Those who qualify for emergency loans include a small businesses with fewer than 500 employees; non-profit 501(c)(3) organizations with fewer than 500 employees; an individual who operates as a sole proprietor, independent contractor or is self-employed that carries on a trade or business, among other things.
Loans will require a “good faith certification” that “the uncertainty of current economic conditions makes the loan request necessary to support ongoing operations,” that “the borrower will use the loan proceeds to retain workers and maintain payroll or make mortgage, lease, and utility payments,” or other specifics. The loans will not require collateral, a personal guarantee, or proof that the borrower sought a loan elsewhere, the chamber says.
Borrowers may also be forgiven if they maintain their payrolls during the crisis or restore their payrolls afterward, the chamber says.
U.S. Chamber of Commerce President Suzanne Clark said in a statement released last Monday that they would be working with state and local chambers throughout the country.
“[We are working to] provide businesses with the information they need to stay afloat and keep people employed during the pandemic,” Clark said. “We remain committed to ensuring no family or business goes bankrupt due to financial hardships associated with the coronavirus.”
