CARES Act establishes new $349 billion Paycheck Protection Program
The Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed. The U.S. Treasury Department and the Small Business Administration expect to have the program operational by Friday, April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union; apply for a loan; and be approved on the same day. The new loan program will be available retroactive from February 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.
The new loan program will help small businesses with their payroll and other business operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees, or SBA fees – all with a 100% guarantee from SBA. All loan payments will be deferred for six months. Most importantly, the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest. Learn more.
F&M Bank teams up with SCCF to offer relief – In response to the COVID-19 health crisis, Farmers & Merchants (F&M) Bank is partnering with the Staunton Creative Community Fund (SCCF) to establish a $25,000 loan fund to benefit entrepreneurs and small businesses in Staunton, Waynesboro, and Augusta County. Funds for the Disaster Relief Loan and Loan Forgiveness Program will be provided by F&M and managed by SCCF, a local non-profit organization that supports small business in the Shenandoah Valley through microlending, technical assistance, and education.
Loans offered through this program will be 0% interest with a term of up to 3 years, and amounts ranging from $1000 to $5000. For each principal payment that is made, those dollars will be matched 1:1 so a borrower receives 50% loan forgiveness. Learn more.
Economic Injury Disaster Loans (EIDL) and Loan Advance – The SBA’s Economic Injury Disaster Loan (EIDL) program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
Entities eligible to apply for EIDL may request an advance in the form of an emergency grant of up to $10,000. Learn more.
Restaurant Employee Relief Fund – The National Restaurant Association Education Foundation is providing $500 grants through a restaurant employee relief fund dedicated to assist distressed restaurant employees whose work-life has been disrupted due to the COVID-19 pandemic. The Restaurant Employee Relief Fund was created to help restaurant industry employees who have demonstrated being financially impacted by COVID-19, whether through a decrease in wages or loss of employment. These grants will be made on a first-come first-served basis, subject to availability of funds. 100% of the Fund’s proceeds will go to providing grants to restaurant workers. Applications for grant money will open on April 2. Learn more.
Other Resources
Please continue to check our website (waynesborobusiness.com/recovery-resources), as it will be updated frequently as we learn of new opportunities.
For Tourism Businesses, please refer to VTC’s Coronavirus Business Assistance Resources page. It is updated daily.
