Banks nationwide processed the first loans Friday morning under the federal government’s “paycheck protection” plan to encourage as many as 30 million small businesses hurt by the coronavirus outbreak to keep workers on the payroll for eight weeks.
Treasury Secretary Steven T. Mnuchin said before 9 a.m. that community banks had processed more than 700 loans for $2.5 million.
“The system is up and running,” Mr. Mnuchin tweeted. “Great work!!”
Some major banks, such as JPMorgan Chase, said they wouldn’t be able to process loan applications on Friday because they were still awaiting guidance from Treasury. That guidance was issued on Thursday.
The total amount available is about $350 billion. Businesses with fewer than 500 employees — including sole-proprietors and the self-employed — are eligible.
Funded through the Small Business Administration, most of the loan amounts will be forgiven if employers show they used the money to keep workers on the payroll. Companies also can use some of the money to pay certain expenses.
“We know there will be challenges in the process,” said SBA Administrator Jovita Carranza. “Our most important objective is to allow small businesses to keep their employees on board, and keep their businesses viable through this unprecedented disruption.”
The SBA has eligibility guidelines here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp
Treasury has the application form here: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf
• Dave Boyer can be reached at dboyer@washingtontimes.com.
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