Stimulus Package Funding
UPDATE: On, April 3, the SBA issued the Final Rule for the Paycheck Protection Loan program for Small Businesses. The final rule had four changes from previously reported rulings due to the anticipated high subscription from businesses:
1. Loan maturity will be 2 years, deferred for 6 months.
2. Interest rate will be 1%.
3. At least 75% of the forgiven amount must be used for payroll.
4. SBA Paycheck Protection Form 2483, payroll records plus documents required by the Bank
These changes are reflected below.
Paycheck Protection Program (PPP)
The Paycheck Protection Loan was passed as part of the Stimulus Package last Friday, March 27. The flyer posted at the bottom of this page is from SBA, who will administer the program through local banks. The program is intended to help those businesses affected by the COVID-19 crisis that are keeping employees working. Briefly:
Eligibility: Small businesses under 500 employees.
Borrowing Amount: 250% of the average monthly payroll expense.
Use of Funds: Payroll, interest on mortgages, rent payments, leases and utility.
Interest Rate: 1%
Loan Repayment: Loan maturity 2 years, deferred for 6 months.
Loan Forgiveness: If you keep all your employees and funds are used for payroll, rent, utilities, all the funds may be forgiven. At least 75% of the forgiven amount must be used for payroll. May apply for forgiveness 8-week after loan is approved.
The document below provides additional information. You should contact your tax advisor and/or bank for the application process and file as soon as possible, while funds last.
Finding Assistance
Solano SBDC: Our local Small Business Development Center may assist you. Call 707.646.1071 or go to https://www.solanosbdc.org/
City of Benicia: If our office can be of service, please reach out to Mario Giuliani at 707.746.4289 or mgiuliani@ci.benicia.ca.us.
SBA: Visit the SBA for further information: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp
Banks: Searching for an eligible lender? A list of Benicia banks is included with the documents below. You can also try this link at the SBA: https://www.sba.gov/paycheckprotection/find
Files you can download (PDF)
