MHARR Provides Latest Update on Small Business COVID19 Relief Measures
TO: MHARR MANUFACTURERS
FROM: MHARR
RE: LATEST UPDATE ON SMALL BUSINESS COVID-19 RELIEF MEASURES
MHARR was invited to participate in a March 26, 2020 conference call with Ms. Jovita Carranza, Administrator of the U.S. Small Business Administration (SBA), regarding federal-level relief programs for small businesses affected by the current COVID-19 emergency and related economic dislocation.
The hour-long briefing by Ms. Carranza and other senior-level SBA officials, focused primarily on two programs designed to provide economic assistance for small businesses impacted by liquidity issues resulting from COVID-19 closure orders and slowing economic activity caused by the Coronavirus pandemic.
One of these programs, which offers small businesses Economic Injury Disaster Loans (EIDL), is currently in place and operative in all 50 states, each of which has already been preemptively designated as a federal disaster area due to the COVID-19 pandemic. EIDL loans carry an interest rate of 3.75% for small businesses with a repayment period of up to 30 years and a one-year deferment of the borrower’s first payment. Further information regarding the EIDL program and application process is available at the SBA internet website, at www.sba.gov/disaster.
An additional program – the Paycheck Protection Program (PPP) — is expected to become available for small businesses upon final House of Representatives passage of the pending Coronavirus relief bill already approved by the United States Senate. This program is expected to provide funds for up to eight weeks of payroll costs and operating expenses for small businesses. Loans will be for a ten-year period at a 4% interest rate, with $10,000 of the total amount for payroll treated as a grant to the business recipient. According to SBA, applicants for EIDL loans will also be eligible to apply for PPP assistance as well. Further information on this program is expected to be made available on the SBA website soon after final enactment of the federal Coronavirus relief bill.
MHARR will continue to closely monitor federal economic relief initiatives with potential applicability to the manufactured housing industry and particularly its smaller businesses.
TO: MHARR MANUFACTURERS
FROM: MHARR
RE: LATEST UPDATE ON SMALL BUSINESS COVID-19 RELIEF MEASURES
MHARR was invited to participate in a March 26, 2020 conference call with Ms. Jovita Carranza, Administrator of the U.S. Small Business Administration (SBA), regarding federal-level relief programs for small businesses affected by the current COVID-19 emergency and related economic dislocation.
The hour-long briefing by Ms. Carranza and other senior-level SBA officials, focused primarily on two programs designed to provide economic assistance for small businesses impacted by liquidity issues resulting from COVID-19 closure orders and slowing economic activity caused by the Coronavirus pandemic.
One of these programs, which offers small businesses Economic Injury Disaster Loans (EIDL), is currently in place and operative in all 50 states, each of which has already been preemptively designated as a federal disaster area due to the COVID-19 pandemic. EIDL loans carry an interest rate of 3.75% for small businesses with a repayment period of up to 30 years and a one-year deferment of the borrower’s first payment. Further information regarding the EIDL program and application process is available at the SBA internet website, at www.sba.gov/disaster.
An additional program – the Paycheck Protection Program (PPP) — is expected to become available for small businesses upon final House of Representatives passage of the pending Coronavirus relief bill already approved by the United States Senate. This program is expected to provide funds for up to eight weeks of payroll costs and operating expenses for small businesses. Loans will be for a ten-year period at a 4% interest rate, with $10,000 of the total amount for payroll treated as a grant to the business recipient. According to SBA, applicants for EIDL loans will also be eligible to apply for PPP assistance as well. Further information on this program is expected to be made available on the SBA website soon after final enactment of the federal Coronavirus relief bill.
MHARR will continue to closely monitor federal economic relief initiatives with potential applicability to the manufactured housing industry and particularly its smaller businesses.
