Paycheck Protection Program
The Paycheck Protection Program may be the most versatile new COVID 19 program out there for small businesses. Part of the Federal package of programs, this is the loan that could turn into a grant. Here’s what we know so far.
PAYCHECK PROTECTION PROGRAM:
Source: Maine Department of Economic and Community Development (DECD)
- Zero Fee Loan of up to $10 million
- Can be used for payroll and other costs associated with doing business
- Up to 8 weeks of the loan that was used for payroll and other business related costs will be forgiven if the business retains their employees at the current salary level.
- Loan principal and interest are differed for up to a year.
- All borrowers fees are wavied.
- Retroactive to February 15, 2020 so that employers can bring workers back that may have already been laid off due to economic hardship caused by COVID-19.
- A business that receives an Economic Injury Disaster Loan between January 31, 2020 and June 30, 2020 as a result of a COVID-19 disaster declaration is eligible to apply for a Paycheck Protection Program loan or the business may refinance their Emergency Injury Disaster Loan into a Paycheck Protection Program loan.
- The Emergency Injury Disaster Loan grant award of up to $10,000 would be subtracted from the amount forgiven in the Payroll Protection Program.
- All current Small Business Administration 7(a) lenders are eligible lenders for the Payroll Protection Program.
- List of SBA Lenders
Other Programs: SBA Disaster Loans
Atlanta – The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to Maine small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19), SBA Administrator Jovita Carranza announced today. SBA acted under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, to declare a disaster following a request received from Gov. Janet T. Mills on March 13, 2020.
The disaster declaration makes SBA assistance available in the entire state of Maine and the contiguous counties of Carroll, Rockingham and Stratford in New Hampshire.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist Maine small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of the Coronavirus (COVID-19),” said Administrator Carranza.
SBA Customer Service Representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process.
“Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the Coronavirus (COVID-19) since Jan. 31, 2020, may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” said Carranza.
“These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing,” Carranza added.
Eligibility for Economic Injury Disaster Loans is based on the financial impact of the Coronavirus (COVID-19). The interest rate is 3.75 percent for small businesses. The interest rate for private non-profit organizations is 2.75 percent. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email firstname.lastname@example.org for more information on SBA disaster assistance. Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The deadline to apply for an Economic Injury Disaster Loan is Dec. 16, 2020.
For more information about Coronavirus, please visit: Coronavirus.gov.
For more information about available SBA resources and services, please visit: SBA.gov/coronavirus.
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
FAME Partners with SBA and Maine Lenders on COVID-19 Relief Loan Programs
|The Finance Authority of Maine (FAME) is partnering with the U.S. Small Business Administration (SBA) and local Maine lenders to offer special, limited-time loans and loan insurance to eligible Maine businesses affected by COVID-19. |
FAME and participating lenders will make special terms available to Maine-based businesses that have experienced interruption or hardship due to COVID-19. Various benefits include: loans up to $50,000 offered at reduced interest rates; interest-only payments; up to 75% pro-rata loan insurance on loans up to $100,000; interim financing in conjunction with the SBA wherein FAME makes loan proceeds available while approved SBA borrowers await federal funding.
Additionally, the Legislature recently enacted emergency legislation related to COVID-19 response that includes a new consumer loan guarantee program to be administered by FAME in partnership with Maine lending institutions. It will provide a limited number of low to no-interest loans to eligible individuals impacted by the virus.
You can find more details about each of these programs on our website. FAME will host a virtual seminar early next week to share information and answer questions, please watch your email for more information.
The COVID-19 Relief Consumer Loan Program provides no-to low-interest consumer loans through a loan guarantee program involving Maine’s banks, credit unions, and FAME. Interested borrowers should contact their local bank or credit union (not FAME) to see if the lender is offering this program and to apply. The program offers loans of up to $5,000 (minus any unemployment benefits received by borrower). A borrower may apply for up to three (3) loans, one per each 30-day period.
The COVID-19 Relief Lender Insurance Program provides commercial loan insurance of 50-75% to lenders who make loans to Maine businesses experiencing interruption or hardship due to the COVID-19 pandemic.
The COVID-19 Relief Interim SBA Finance Loan Program provides FAME Direct Loans of up to $100,000 with special terms available to eligible borrowers who provide proof of commitment for SBA financing. The FAME loan would be originated for use to the business owner until the SBA loan is funded. The SBA loan would then pay-off the FAME loan.
The COVID-19 Relief Business Direct Loan Program provides FAME Direct Loans of up to $50,000 with special terms available to Maine-based businesses experiencing interruption or hardship due to the COVID-19 pandemic.
Read the full press release on these COVID-19 relief loan programs here.
FAME will make every effort to work with borrowers on special accommodations for their loans, especially during this challenging time. The health and welfare of our associates, customers, and the state as a whole are of the utmost importance to us.
|The Finance Authority of Maine (FAME) does not discriminate in the administration of any of its programs or in its employment practices on the basis of race, color, national origin, age, gender, religion, physical or mental disability, political affiliation, marital status or sexual orientation. FAME is an equal opportunity employer, provider and lender.|
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