By Stephen Behrends, Mar 29 2020 04:24PM
How to get the new SBA Stimulus Business Loans for Payroll, Rent, Mortgage Payments and Utilities
Many thanks to my friend, Newport, Oregon attorney Braulio Escobar, who wrote all but the last three paragraphs of this post!
The stimulus package is offering small businesses S.B.A.-backed loans to pay for basic expenses. They would not have to repay portions that were spent on paying employees, a mortgage, rent or utilities. The banks lending the money would be reimbursed for those portions by the Treasury Department, which is receiving $377 billion to fund the program.
Under the new program, individual lenders will be able to use their own paperwork to process loans and can expect S.B.A. approval within two weeks. Banks will not disburse the loans until the S.B.A. assures them that each is fully guaranteed against default.
Unlike other S.B.A.-backed loans, business owners won’t have to provide personal guarantees or use all their available assets — from real estate to equipment — as collateral. There are no fees, and interest rates are capped at 4 percent.
The program comes with restrictions: Loans are limited to $10 million, to businesses with 500 employees or less. Businesses that have recently laid off workers would be required to repay a larger portion of their loans, and loans covering salaries of over $100,000 a year wouldn’t qualify for forgiveness.
Businesses would not have to repay loans covering up to eight weeks worth of payroll expenses. That means that once businesses receive their loans, a new clock will begin to tick: They’ll have to use the money within two months to avoid repaying it.
Below is a link to a Senate report with more information. It also has a link to let you find the closest SBA office and also to identify banks that will be handling the loans. If this link won't work for you, go to Googgle my Business and search for Stephen Behrends, Law Office and look at the latest post. It has the same link and it was work better there.
The link to that post is:
The post to the senate report is:
This is a program that could save your business and protect your employees. Check back on this blog for additional information as it becomes available. If your bank is on the list of lenders, contact them immediately to get started on the process.