SBA/Paycheck Protection Program
The Paycheck Protection Program (PPP) was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act as an emergency relief extension of the Small Business Administration (SBA) 7a loan program. The program allows financial institutions to provide federally-backed, forgivable loans to eligible businesses. As this is a brand new program and developing situation, we understand that there are still many questions regarding some of the program’s specifics. Beach Community Bank is working to help our impacted businesses understand what PPP means for their situation and we are here to support our clients and communities through the application process.
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The PPP is a federal loan program that helps small and medium sized businesses impacted by the coronavirus (COVID-19) to retain their workforce.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.
Yes. The Paycheck Protection Program was signed into law in the wake of the COVID-19 global health crisis. One of this program’s significant features is that you can apply for loan forgiveness after receiving the funds. Forgiveness can be up to 100% of the loan amount.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.
Since the loan will be packaged as an SBA 7(a) loan, businesses can apply through Beach Community Bank or other qualified SBA lender. View the application/eligibility requirements on our SBA page and complete our online contact form to speak with one of our lenders about the process.
The program is administered by SBA lenders and runs through June 30, 2020 contingent upon the availability of program funds.
You can find more information about the Paycheck Protection Program by visiting the Small Business Administration’s (SBA) page: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp