SBA COVID-19 Disaster Assistance
By: Thomas A. Stith III
North Carolina District Office
In wake of the COVID-19 disaster declaration, the SBA North Carolina District Office has been working tirelessly to ensure details regarding SBA's disaster assistance programs are distributed to the citizens of North Carolina.
Please take this opportunity to review the below message regarding the Paycheck Protection Program.
Paycheck Protection Program
ASSISTANCE FOR SMALL BUSINESSES
The CARES Act establishes a new $349 billion Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed.
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.
Under this program:
- Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
- Loan payments will be deferred for six months.
- If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
More program details can be found here:
A list of SBA lenders in North Carolina can be found here:
Please continue to check sba.gov/coronavirus for more details and information.
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