The Coronavirus Aid, Relief, Economic Security (CARES) Act recently enacted into law provides for various forms of financial relief for mid-sized and small businesses. The programs will be administered through the U.S Small Business Administration (SBA) who is offering federal disaster loans to provide working capital for eligible mid-sized and small businesses and nonprofit organizations. The Program offerings include:
Paycheck Protection Program
The Paycheck Protection Program (PPP), offered through Manasquan Bank, is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $10 million for payroll and certain other expenses. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
The SBA has informed us, that final guidance and borrower requirements will be forthcoming. Without definitive instructions, we are unsure if the U.S. Department of the Treasury’s current available application will be modified or replaced. We would however, encourage our valued clients who wish to apply for this program to proceed and complete the application. The program is available to small businesses, sole proprietors and non-profits for applications starting on April 3, 2020 and for the self-employed and independent contractors on April 10, 2020. Please note, the processing time and availability of funds are unknown at this time.
SBA Disaster Assistance, Economic Injury Disaster Loans (EIDL)
Clients may be eligible for a low-interest disaster assistance loan. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%. The EIDL program is being offered directly through the SBA. Please note that an application submission to this program may prohibit participation in PPP. Please contact the SBA for further details.
Please click here to complete the EIDL application directly thru the SBA.
In addition, Manasquan Bank is offering disproportionately impacted borrowers the following:
As always, we’re here to help you access the resources you need. Please contact your commercial lender partner or contact us for additional information at 844.626.2265.
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