Loan Applications Available for Businesses, Non-profits During COVID-19 Response

HARRISBURG – Small businesses, private non-profit organizations, veterans organizations and sole proprietorships that have been impacted by the COVID-19 pandemic can apply now for forgivable loans from the federal government, according to Senator Scott Martin (R-13).

The new Paycheck Protection Program offers loans to cover payroll costs, mortgage interest, rent and utility costs over an eight-week period for businesses affected by coronavirus mitigation. The loans can be forgiven by the federal government if certain conditions are met.

The program is available to entities with 500 or fewer employees. Businesses must maintain their number of staff and level of payroll and quickly rehire any recently displaced employees in order to qualify for loan forgiveness.

No more than 25 percent of the loan may cover anything other than payroll costs, and loan payments will be deferred for six months for any amount that is not forgiven.

Self-employed individuals and independent contractors are also eligible to receive funding through the program and can apply starting on April 10.

Applications must be submitted through an existing lender with the U.S. Small Business Administration. A list of lenders is available at www.sba.gov.

More details about the program are available here: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp.

 

CONTACT:   Terry Trego (717) 787-6535

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