Treasury Dept Releases Details For Businesses to Apply for Coronavirus Relief Funds Starting April 3rd…

U.S. Treasury Secretary Steven Mnuchin has announced that small businesses (0 to 500 employees) and sole proprietorships can start applying for the coronavirus relief funds on April 3rd.  One week later, April 10th,  self-employed individuals, 1099 contractors and s-corps can apply.  [Visit SBA.gov/coronavirus]

[pdf link available here]

WASHINGTON – Following President Trump’s signing of the historic Coronavirus Aid, Relief, and Economic Security (CARES) Act, SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin today announced that the SBA and Treasury Department have initiated a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need.

The CARES Act establishes a new $349 billion Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed.

“This legislation provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed,” said Secretary Mnuchin.

“Treasury and the Small Business Administration expect to have this program up and running by April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day.  The loans will be forgiven as long as the funds are used to keep employees on the payroll and for certain other expenses.”

“This unprecedented public-private partnership is going to assist small businesses with accessing capital quickly. Our goal is to position lenders as the single point-of-contact for small businesses – the application, loan processing, and disbursement of funds will all be administered at the community level,” said Administrator Carranza.

“Speed is the operative word; applications for the emergency capital can begin as early as this week, with lenders using their own systems and processes to make these loans. We remain committed to supporting our nation’s more than 30 million small businesses and their employees, so that they can continue to be the fuel for our nation’s economic engine.”

The new loan program will help small businesses with their payroll and other business operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees, or SBA fees – all with a 100% guarantee from SBA.

All loan payments will be deferred for six months. Most importantly, the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest.

The Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed. Visit SBA.gov/Coronavirus for more information on the Paycheck Protection Program.

  • The new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.

Loan Terms & Conditions

  • Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
  • Maximum loan amount up to $10 million
  • Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
  • All loans under this program will have the following identical features:
    • Interest rate of 0.5%
    • Maturity of 2 years
    • First payment deferred for six months
    • 100% guarantee by SBA
    • No collateral
    • No personal guarantees
    • No borrower or lender fees payable to SBA

Visit treasury.gov/cares for more information on SBA’s assistance to small businesses.

Get your paperwork together now, contact your local bank and make an appointment. You will need one year of expenses and payroll records.  You can apply at your current (FDIC insured) bank.  Treasury will use the FDIC system to mitigate lender risk.  This means you can receive those funds deposited on the same day you apply.

This entry was posted in Big Government, Coronavirus, Donald Trump, Economy, President Trump, Uncategorized, US Treasury, USA. Bookmark the permalink.

100 Responses to Treasury Dept Releases Details For Businesses to Apply for Coronavirus Relief Funds Starting April 3rd…

  1. booger71 says:

    Bank phones will be swamped with many branches have shut down. A lot of the self employed was thinking they would be left out, good to see they will be taken care of.

    Liked by 11 people

  2. joshashland says:

    Thank you for this article. i was aware but many others may not be. I try not to use credit and when I do I pay it off quickly. retired partially but still in R.E.

    Liked by 4 people

  3. I do not have words to express my gratitude and love for our President Trump. If I ever doubted him for one minute, I regret it.
    This man has shown himself to be the greatest President in the history of our great Republic. I agree with Mike Lindell that it was Divine Intervention that sent him to us.
    As small business owners with 16 employees (plumbers), a massive payroll and assorted other costs, we faced the loss of our business if we did not get relief within a short period of time.
    I have spent untold hours trying to wade through the SBA red tape and paperwork to the point of tears.
    In the last 48 hours things changed drastically and there is much more info available, culminating in the announcement just posted.
    We will be able to save our business and keep our employees who are all ready willing and able to get back to work. Sadly Il Duce Cuomo has shut down many construction sites, EVEN SOME THAT ARE OUTDOORS!
    Our President’s boundless energy and love of Country are unmatched. His confidence and leadership are inspirational. With God and President Trump on our side, no one can stand against us.
    God bless our President Trump and the United States of America..

    Liked by 27 people

    • TreeClimber says:

      I haven’t said anything but I’ve seen your posts repeatedly, Seneca. I’m glad your business will be okay.

      Liked by 11 people

    • delighteddeplorable says:

      Oh Seneca, you’ve done it again – thank you!

      Liked by 4 people

    • vikingmom says:

      Thankful beyond words that your company will be protected and your employees taken care of, as we all know this was a heavy burden that you were carrying!!

      Liked by 7 people

      • viking mom- thanks to you and all my other Tree House friends whose words and information have been so helpful and inspiring during this crisis.
        We have the best people here at the CTH.
        I literally don’t know how I managed before I found this amazing site just a couple of years ago.
        Sundance is doing a great service for our Country and our President with his remarkable work on this site.
        If God is with us, who can be against us?

        Liked by 3 people

    • sickconservative says:

      Keep the faith at this point, I’m still open for business at this point in NC but calls have come to a crawl. I have just four employees and so far keeping them busy at this point, my wife is the best she has now five weeks of payroll put away at this point and still ok with the bills.
      I really don’t want to apply for anything from the bill while not having to lay anyone off been thru lean times before and will survive this.

      Liked by 9 people

      • Britt West says:

        Us too.
        Don’t want money we haven’t earned.
        But my competitors will likely take it.

        How about a tax credit for businesses that have thought ahead and have a “rainy day” fund?

        Fair is fair.

        Liked by 6 people

      • Britt West says:

        Us too.
        Don’t want money we haven’t earned.
        But my competitors will likely take it.

        How about a tax credit for businesses that have thought ahead and have a “rainy day” fund?

        Fair is fair.

        Like

      • Britt West says:

        Us too.
        Don’t want money we haven’t earned.
        But my competitors will likely take it.

        How about a tax credit for businesses that have thought ahead and have a “rainy day” fund?

        Fair is fair.

        Like

      • Britt West says:

        Us too.
        Don’t want money we haven’t earned.
        But my competitors will likely take it.

        How about a tax credit for businesses that have thought ahead and have a “rainy day” fund?

        Fair is fair.

        Liked by 1 person

      • bertdilbert says:

        Don’t let your wife’s hard work be wasted. At minimum, take the money you are entitled to so when the next bump in the road comes you do not have to go into a panic. You have fixed cost such as rent, office help, insurance, phone and so on that must be paid. When business comes to a crawl it eats into your capital.

        When the economy expands after this, you may choose to expand. You need capital to expand. I would plan on expansion, if you see that in your future. It took years of scraping to put yourself to where you are today.

        Liked by 3 people

      • Seneca the Elder says:

        Conservative friend- like you, we have always tried to be self sufficient and have never taken Government “handouts.” However, the current situation is a horse of a different color, at least as I see it.
        First of all, our small businesses are literally the backbone of our great Country. How are we going to help put back the pieces if we are driven out of existence? Contractors and skilled tradesmen like our plumbers are especially needed to maintain our SANITARY INFRASTRUCTURE.
        Second- here in the People’s Republic of NY we pay the highest taxes and workers comp insurance premiums in the country. We basically get little to nothing back, ever. Local and state government does NOTHING to help us. They are now on paid vacation.
        So this may be our once in a lifetime chance to get something back for a change. Lord knows we deserve it and so do the rest of the small businesses like ours.
        I urge you to please reconsider and to apply for the money. Save your business! We need you and everyone else like you. All hands on deck.
        God bless us all.

        Liked by 1 person

      • Conservative- and any other Treepers with small businesses who are trying to get assistance. Here is a link to the Fast Track application form.
        This looks like an easy one to fill out.
        It says that it is the form to be submitted to your lender.
        Please note- we are looking at a couple of banks we do business with to apply for the loan. There is conflicting information from one of the banks about the interest requirements. I will keep you posted on that.
        For now, this is the best application form I can find:

        Click to access Paycheck-Protection-Program-Application-3-30-2020-v3.pdf

        Like

    • Chip Doctor says:

      Senaca, this is the second time this week you have made my day. God is good!

      Liked by 5 people

    • Dekester says:

      Thank you Seneca,

      Your posts are inspiring and uplifting.

      Our best wishes to you and your business.

      God bless PDJT

      Liked by 7 people

    • nats1mom says:

      Seneca, great to hear this! I have been reading your posts and keeping my fingers crossed that you would see light at the end of the tunnel! Yippee – it looks as though there finally is light for you. Keeping you and your employees in my prayers as well as other businesses facing uncertainty!

      Liked by 6 people

    • romy911 says:

      Seneca, so happy to hear that help is on the way for you, your family and your business.

      Liked by 2 people

    • Peoria Jones says:

      Seneca, I am glad for you – I hope this works out well, as you deserve it.

      As for some others, I see a free-for-all:

      Liked by 3 people

    • The 2nd best part of this discussion is that I see familiar names rather than ROLCONs. Best wishes everyone!

      Liked by 4 people

  4. PCS says:

    The level of fraud that we will be talking about in a year or so over this will be quite entertaining. Fake employees, fraudulent social security numbers, on and on.

    Liked by 2 people

    • luke says:

      I won’t dispute that PCS but the level of hell we’ll be in if we don’t. Lol the old saying damned if you do yada yada . That’s the thing about it concerns me the most, this magic money works for a time like this. Yes I understand the long term repercussions; or at least I think so. But at what point does this quit working? It’s a question that needs to be asked and will point you to the anxiety I feel over this mess. This is why I say the better we be done with this avoiding major flare ups of the virus as it would kill morale.

      Liked by 3 people

    • John Bosley says:

      I wonder if some business owners with lousy credit ratings or failure to file previous years taxes will still have a shot at this ?
      Yes , massive fraud.
      Hopefully the IRS will be able to keep a tight leash this.

      Liked by 1 person

      • bertdilbert says:

        Yes there will be massive fraud.. When the fraudsters get the money, they will spend it supporting the economy and providing jobs. Mission accomplished.

        Liked by 1 person

    • Not if the IRS does its job. Easy to match everything up.

      Like

  5. Sharon says:

    Maybe others here are in the same category as me – I have no taxable income and therefore am not required to file a yearly return. A simple filing will be required by Seniors in this category. Mnuchin addresses this issue in this section (copied from above):

    “Americans will begin receiving economic impact payments in the next 3 weeks. Most people will receive these payments automatically. Read here to see if you are eligible and if you need to take any action: https://t.co/eHqhvFNTFg

    — Steven Mnuchin (@stevenmnuchin1) March 30, 2020

    The detailed explanation about it is at the link provided in the text ( https://t.co/eHqhvFNTFg ).

    Liked by 1 person

  6. GB Bari says:

    Article in the WJS gives one reason to pause and think about the current direction in which we are headed.

    “Save Capitalism from the Cares Act”
    https://www.wsj.com/articles/save-capitalism-from-the-cares-act-11585608917

    FTA:
    (SNIP)
    “The greatest resource most companies have is their teams of employees. If they dismantle those teams because of the pause in the economy, production capacity will be lower at the end of the pandemic.

    Only $377billion of the $2 trillion package is directly targeted to this goal. These are loans to small firms (fewer than 500 employees), which are forgivable if the funds are spent on payroll, rent, mortgage interest and utilities. By using 2017 census data (the most recent available), we calculated the total expenditures in payroll, interest expenses and rents of U.S. small firms amounts to $258 billion a month.

    Unless the Trump administration introduces criteria for selective targeting, the money allocated in CARES will run out in a month and a half. Designing the conditions for such targeting isn’t easy, since every requirement will slow the money’s deployment and speed is of essence. Thus, we fear that the administration will soon come back to Congress with a new request for money.”
    (SNIP)

    So this $377Bn is nowhere enough to cover the small businesses (>500 employees) through the summer, if they do not re-start by early June. And absent an official announcement within the next week or two that the “shutdown” guidance will be lifted as of May 1st with a specific exit strategy, the taxpayers will likely be called upon to float yet another multi-trillion dollar bill to continue to carry stalled businesses and their employees further into an uncertain future.

    BUT, it would be out of character if the President, Secy. Mnuchin, and the Economic Team have not already considered these issues and have that Exit Strategy at the ready.

    Liked by 3 people

  7. Lanna says:

    A family member owns a laundromat and a cleaning service in Cody, WY. He’s lost customers because they’ve had to close their businesses during the shutdown. I’ve been passing info along to him and on Monday he had a meeting with his bank.

    The woman he met with at the bank was totally clueless, knew nothing about what was going on. He asked if she made seen reference to the program on TV and if managers hadn’t informed her of it and how to handle applicants. She said she didn’t watch TV, spent her time playing with her grandchildren. He left disgusted, with no direction of how to proceed.

    I just sent a link to this article to him, hope this info will get him on the right track.

    Thanks, SD, you always do such a great job of keeping us informed!

    Liked by 6 people

  8. boomerbeth says:

    The Pelosis need NO RELIEF.
    THE REAL QUESTION; why was the bridge Bill delayed?
    It was a timing constraint.

    After Congressional Coronavirus Meetings, Pelosi Bought $5 Million in Amazon Stock Before U.S. Retailers Were Forced to Close; And She Already Made Millions

    https://truepundit.com/after-congressional-coronavirus-meetings-pelosi-bought-5-million-n-amazon-stock-before-u-s-retailers-were-forced-to-close-and-she-already-made-millions/

    Liked by 4 people

  9. sundance says:

    Liked by 3 people

  10. California Joe says:

    It’s malpractice building a statistical model for the United States built on the events in Italy considering:

    1. The Disasterous Wuhan Connection.
    2. Failure to cut direct flights to China.
    3. Overwhelming % of Italian population over 80.
    4. Failure to mitigate until it was too late.
    5. Socialized medicine.
    6. Typically high Italian flu deaths annually.

    Why would Dr. Brix and Fauci ignore the LACK OF SIMILARITIES???? They can’t be that stupid!

    Liked by 5 people

  11. So what if we have already submitted the online application for the Covid19 SBA disaster loan? Does this mean we have to now go through our bank?

    Like

    • California Joe says:

      I never heard of a White male getting an SBA Loan. Why do only see Pakistani and Indian owned Dunkin Donuts and Convenience stores? Did you think a White guy never tried to buy one!

      Liked by 1 person

      • I have one. But we did have to go to a second bank after Cap1 tried to play games midway through the process. It was as if they were more interested in compiling our entire personal wealth than providing the loan.

        Liked by 1 person

    • billrla says:

      MississippiRifle: You may be referring to separate programs. The Small Business SBA disaster loans (EIDL is the acronym) can be applied for online by the applicant. The PPP program must be applied for through a federally licensed lending institution, i.e., a bank.

      Liked by 3 people

    • Brian Baker says:

      You cannot do the Small Business PPP online. Go to the SBA website and look for banks that do SBA loans, i.e. US Bank is one. Contact them to apply for the PPP loan program.

      Like

    • Searkreb says:

      Don’t take the funding on the sba loan unless you can prove you used each program for different purposes. We are convention the payroll protection act (what this article is talking about)

      Like

  12. Publius2016 says:

    WoW! states that are OPEN have the advantage!

    so much pressure will be on DIMM States and Mayors!

    Liked by 1 person

  13. Publius2016 says:

    Banks don’t like losing out on 5% fees!

    Dimm Mayors and Governors, get it together!!!

    Mnuchin is a Genius…next up, The Turtle’s wife!!!

    Liked by 3 people

  14. valleyj says:

    Can the President please build more reservoirs in Cali.

    Liked by 3 people

  15. Searkreb says:

    We will be participating. I am down on the fact that unemployment will pay $15 per hour for 4 months. Already seeing some people with jobs wanting to be laid off.

    Liked by 1 person

  16. The Inflation from this is going to be astronomical.
    They have never injected this much cash into the economy before.

    Like

  17. I saw in a previous article the historical Payroll dates we must use. Anyone recall what they are?

    Like

  18. Tiffthis says:

    I wonder, my husband is a self employed LLC- but he’s making money so he would try to get this gov money- but if he doesn’t get it will he still pay taxes for it? Should he just get it anyway?

    Liked by 1 person

  19. ekie93 says:

    Looks like it’s too late, I laid off 13 employees last Friday. Down to 2.

    Like

  20. valleyj says:

    How do they monitor fraud?

    Liked by 1 person

  21. BigTalkers says:

    This is the time when the “Rubber will finally begin to meet the road”…

    For DECADES our Congress and the US Treasury have permitted (“wink, wink”) tax scofflaws to pay their EMPLOYEES as so-called “Casual Laborers” (through 1099’s or in cash), thereby ROBBING our Social Security Trust Fund, Medicare, and federal (FUTA) and state (SUTA) unemployment tax collections to the tune of TRILLIONS OF DOLLARS.

    So now when these MILLIONS OF WORKERS actually need to collect unemployment insurance, since their employers (or those defined as “self-employed”) never paid any in, they’re going to be INELIBIBLE.

    And looking ahead, this is just a summer’s breeze compared to when these Millions of such workers reach retirement age and can no longer support themselves or become disabled. So the question will become, “Who’s going to pay their tab then?”

    I mean you didn’t really think all those poor folks in Homeless encampments were drug addicted or mentally deficient, did you? No, of course not.. Many simply represent the “Advance party” of the Millions of former workers our society has already thrown away, and those we elected to represent us in Washington KNEW ABOUT ALL ALONG!

    Like

  22. Ned Zeppelin says:

    The Economic Disaster loans are processed directly through the SBA website. The Paycheck Protection Program forgivable loans are processed through your local bank as long as they are an approved SBA lender. The PPP loan apps will be accepted Friday April 3 and if you are thinking of doing it, act now before the funds are exhausted.

    Like

  23. TPW says:

    Wonder what going to happen to SS payments….mine is in 4 years….will we even get it or a fraction of it?……If they cut it then all govt. pension should be cut to the same amount period.

    Like

  24. Mark says:

    Does anyone know whether the two month period in which you must use the funds starts even if your city had ordered a shutdown? Do we use the money to keep the employees on the payroll even while they are at home? We can’t ask them to come to work during a shutdown. If we apply Friday, would the money be dispursed at then end of these shutdowns or immediately? Thanks. None of my bankers have a clue on this.

    Like

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