SBA Loans & PPP Loans Town Hall Zoom Now Available Online
The Chamber of Commerce hosted SBA Regional Director Sharon K. Harvey in an online Town Hall Meeting for members and residents of McDowell County on Tuesday, March 30, 2020. More than 50 people attended to learn about the emergency funding options available through the SBA and any details on the new Paycheck Protection Program that was part of the recently approved CARES Act.
The SBA has been working on handling the thousands of applications coming in from every state and have a new site link and a more streamlined application process, Harvey said. She explained that the Emergency Injury Disaster Loan (EIDL) provides $10K that doesn't have to be paid back to help small businesses cover payroll costs. This funding is available immediately and, she said, even if you don't end up needing the whole loan, there is no pre-payment penalty.
The Paycheck Protection Program will be offered through private banks (approved SBA lenders) and comes with the same $10K "free" money and would go to cover payroll, mortgage interest payments, rent, and utilities. Employers must keep employees on payroll for eight weeks and is available through June 30, 2020.
Harvey encourages those impacted by the Coronavirus to apply as soon as possible. "It just makes sense to apply for the EIDL for the $10K assistance right away," she said. "You don't have to take out the loan if you decide you don't need to." She also asked businesses to be as patient as they can. The Standard Operating Procedures needed to roll out the PPP loans have not been written and many banks, especially in smaller communities such as McDowell, are not trained or prepared to be an SBA approved bank for writing those PPP loans. "Banks are training tellers and other staff to be able to process these loans because of the sheer volume of requests," she added.
She advised contacting your banker right away to determine if the financial institution can write a PPP loan and if so, get your name on the list. The loans will be available through SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program. Lenders will able to process those loans starting April 3, 2020 (not all locations.).