Paycheck Protection Program: What small businesses need to know as SBA loan applications go live
Some small businesses hoping for emergency relief can expect a chaotic start to their Friday.
The Paycheck Protection Program, which promises $350 billion to small businesses affected by the coronavirus pandemic, is supposed to begin today, with a loan application form already live on the U.S. Treasury’s website. Eligible businesses can apply for loans of up to $10 million and may not have to pay it back if the money is used to maintain payroll or other qualifying expenses.
The loans are administered by the Small Business Administration, and businesses can even search for nearby eligible lenders on the SBA’s website.
But some major banks have warned that they won’t be immediately ready to participate. “Financial institutions like ours are still awaiting guidance from the SBA and the U.S. Treasury,” JPMorgan Chase said in a message on its website this week. “As a result, Chase will most likely not be able to start accepting applications on Friday, April 3rd, as we had hoped.”
Chase goes on to say it will alert customers via email and on social media once the program is available.
According to NBC News, some banks received official guidance from the Treasury on Thursday, just hours before the launch.
Inc magazine, our sister publication, is holding a town hall event today (Friday, April 3) at noon ET where experts will “weigh in on updates to the stimulus package, changes to unemployment insurance, and other urgent topics small businesses.” You can learn more and sign up here.
What else you need to know about PPP
The Paycheck Protection Program, part of the massive $2 trillion economic stimulus package signed into law last week, is meant to provide an economic lifeline for an estimated 30 million small businesses affected by COVID-19.
Are banks ready?
Here’s how some of the major financial institutions are responding to questions about the Paycheck Protection Program:
This story has been updated with responses from some banks.
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