Dear Business Leader:
During these uncertain times, many business owners are seeking relief to keep their businesses afloat and take care of their employees. As you know, the CARES Act, allocated $349 billion for the Payment Protection Program, which will provide loans to businesses with up to 500 employees, nonprofits, independent contractors, and the self-employed.
Payment Protection Program borrowers are eligible for loan forgiveness for their loan if they maintain or rehire their employees and maintain salary levels. The total loan forgiveness will be calculated by the sum of payroll costs, mortgage, rent, and utility payments during the eight weeks after receiving the loan. All loan payments for the Paycheck Protection Program will be deferred for at least six months, will have no fees, and have a maximum four percent interest rate.
The Paycheck Protection Program will be administered through existing SBA 7(a) lenders. Applications will be available starting April 3. Please consult with your local bank or credit union to see if they will be providing these loans. If you would like to see a sample form to begin preparing your application, you can visit the SBA website.
You can also apply for an Economic Injury Disaster Loan (EIDL), which is an existing program that provides disaster loans to small businesses in affected areas at a 3.75 percent interest rate for small business and 2.75 percent rate for nonprofits. The CARES Act allocated an addition $10 billion for a new EIDL grant program. This program allows those who have applied for an EIDL can request an advance on that loan of up to $10,000, which the SBA must distribute within three days. The advance is available to anyone who applies for an EIDL, regardless of whether the application was declined or is still pending.
If you have specific questions regarding your application, you can contact your local SBA office or Small Business Development Council (SBDC):
San Diego SBA Office
550 West C Street Suite 550
San Diego, CA
Phone: 619-557-7250 or 619-727-4883
Orange County/Inland Empire SBA District Office
5 Hutton Centre Dr Suite 900
Santa Ana, CA
Phone: 714-550-7420 / TDD 800-877-8339
North San Diego SBDC
2075 Las Palmas Drive
Carlsbad, CA 92011
Orange County SBDC
Digital Media Center
1300 S. Bristol. St., 2nd Floor
Santa Ana, CA 92704
This link from the House Small Business Committee provides a comprehensive summary of all the small business provisions in the bill and some frequently asked questions. Please let me know if you have any questions and if there is any other way we can help.
District Director U.S. Congressman Mike Levin (CA-49)
2204 El Camino Real, suite 314
Oceanside, CA 92054