COVID-19 Paycheck Protection Loans
The Small Business Administration will resume accepting Paycheck Protection Program applications from participating lenders on Monday, April 27, 2020 at 10:30am EDT.
The state has launched a new website MIpaycheckprotection.com, to provide businesses with key resources to assist with Paycheck Protection Loans application to ensure the greatest amount of federal funding is able to be used by small businesses for economic relief efforts throughout the state. The loans will be awarded on a first come, first serve basis with funding caps in place, so the state is encouraging Michigan small businesses to apply early – with the application period for small businesses opening April 3 and for independent contractors and sole proprietors on April 10 – and to utilize the Michigan Paycheck Protection Program website to make the process as streamlined and as simple as possible.
“All across Michigan, small businesses and families are doing their part to mitigate the spread of COVID-19, but this unprecedented time has, understandably, created uncertainty for many employers,” Michigan Lt. Governor Gilchrist said. “That’s why we are working to make it as easy as possible for even the smallest businesses to apply for additional funding with the launch of the Michigan Paycheck Protection Program website. The Paycheck Protection Program offers much-needed financial support for our small businesses and their workers to help them get through this tough time.”
The SBA and Federal Treasury Department initiated the effort of banks and other lending institutions to provide small businesses with the capital they need through the CARES Act. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed.
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.