Businesses and nonprofits can apply for forgivable loans until Aug. 8
The Small Business Administration resumed accepting applications Monday for the Paycheck Protection Program after Congress extended the application period for the forgivable loans to Aug. 8.
The previous deadline to apply was June 30, but with more than $130 billion still left on the table, Congress moved to extend the program.
“The Paycheck Protection Program Extension Act provides an additional month for small businesses, tribal businesses, nonprofits, sole proprietors, independent contractors and those who are self-employed to benefit from this forgivable loan program. The PPP gives employees peace of mind and businesses the financial relief they need to weather the pandemic and continue moving forward,” SBA Pacific Northwest Regional Administrator Jeremy Field said in a press release.
Across the nation nearly 5 million businesses and nonprofits received more than $521 billion in aid to cover payroll and other allowable expenses, according to SBA data.
In Oregon, the SBA approved more than 60,000 loan applications valued at nearly $7 billion, the SBA said.
“Oregon’s small businesses are struggling to stay afloat as the COVID-19 public health emergency continues,” U.S. Sen. Ron Wyden, D-Ore., said in the release. “The Paycheck Protection Program has proven to be a lifeline for these businesses and the workers they employ. This deadline extension is essential, but the work doesn’t stop here. Congress must do more to help America’s small businesses, especially those that are underserved.”
Wyden is pushing for more COVID-19 aid.
Borrowers must spend at least 60% of the loan on payroll and meet other requirements to have loans forgiven. The rest of the money can be spent on mortgages, rent and utilities.
Loan forgiveness is based on spending the money on the right expenses, plus maintaining employees or rehiring employees and not cutting their salaries and wages, according to the SBA.
For loan amounts that aren’t forgiven, the interest rate is 1% and there are no loan fees.
Loans issued before June 5 mature in two years, while loans issued after June 5 mature in five years. In addition, loan payments will be deferred for six months. No collateral or personal guarantees are required, the SBA said.
To apply, contact a bank, credit union or other lending institution. Interested borrowers apply through local lenders, which then submit the application to the SBA for approval.
More information about the Paycheck Protection Program, including how to find a lender, is available at www.sba.gov/paycheckprotection.
Reach Mail Tribune reporter Vickie Aldous at 541-776-4486 or firstname.lastname@example.org. Follow her on Twitter @VickieAldous.