Small Businesses, Non-Profits and Mosques: CARES Act- Coronavirus Aid, Relief and Economic Security Act information
Dear Community Businesses, Nonprofits, & Mosques, As you might be aware, the Federal government recently announced the Coronavirus Aid, Relief, and Economic Security (CARES) Act which allocated $349 billion to help small businesses keep their workers employed during the pandemic and economic downturn. This stimulus is called Paycheck Protection Program . Applications will be accepted beginning today, Friday, April 3, 2020. Please contact your bank NOW for the loan/grant application. The money that is being distributed through the Paycheck Protection Program is limited. Request from your bank to begin the process. Small Business Paycheck Protection Program The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. You do not need to look for other funds before applying to this program. This loan has a maturity of 2 years and an interest rate of 0.5%. Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. Fully Forgiven Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). You will also owe money if you do not maintain your staff and payroll.
How to Request Loan Forgiveness You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days. Must Keep Employees on the Payroll-or Rehire Quickly Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. All Small Businesses Eligible
When to Apply Starting today April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap and lenders need time to process your loan. How to Apply You can apply through any existing 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. Lenders may begin processing loan applications as soon as April 3, 2020. All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found on SBA’s website . What do I Need to Apply You will need to complete the Paycheck Protection Program loan application and submit the application with the required documentation to an approved lender that is available to process your application by June 30, 2020. Click HERE for the application. You will also need to provide your lender with payroll documentation. What do I Need to Certify As part of your application, you need to certify in good faith that:
We hope you find this information helpful. Please remain safe and if there is anything we can do to assist, please contact us. Fi Aman Allah, CAIR- Pittsburgh Family |
