The legislation passed by Congress contains several
provisions to provide emergency assistance for Small Businesses affected by the
pandemic. The next step is for the Small Business Administration (SBA) to
issue guidance to banks such as Chase on how and when to provide much needed
loans to our small business clients under the Act. We will update this
information as we learn more.
This is our current understanding of the provisions in the
bill for Small Business owners:
§ Paycheck
Protection Loan Program expands loan eligibility under the SBA 7a program with
the intention to assist businesses with covering costs related to payroll
(including healthcare and certain related expenses), mortgage interest, rent,
leases, utilities and interest on existing debt.
§ Borrowers
will need to certify that they’ve been impacted. There will be no
personal guarantees or collateral associated with the loan. Detailed
application requirements are still to be determined.
§ Loan
amount maximum is 2.5 times average monthly payroll or up to $10 million.
§ There
will also be a payment deferral and loan forgiveness program.
Summary provide by our partners at Chase Bank. More Details to come...