News • 09.04.2020

Launch: SBA’s paycheck protection program for small businesses

Economic relief provision to protect workers and businesses affected by the coronavirus pandemic

The corner of a paycheck with dollar sign on it and a fountain pen...
Source: PantherMedia/welcomia (YAYMicro)

The U.S. Small Business Administration Administrator Jovita Carranza launched the Paycheck Protection Program, a 349 billion dollars emergency loan program created last week with the President’s signing of the Coronavirus Aid, Relief, and Economic Security Act (CARES). The program provides forgivable loans up to 10 million dollars to small businesses left financially distressed by the Coronavirus (COVID-19) pandemic. The loans, which will be administered at the local level by a national network of banks and credit unions, are designed to maintain the viability of millions of small businesses struggling to meet payroll and day-to-day operating expenses.

The loans, which are 100 percent backed by SBA, are being provided to small businesses without collateral requirements, personal guarantees, SBA fees, or credit elsewhere tests. Those eligible for the program include small businesses, certain non-profits, veterans’ organizations, self-employed individuals, independent contractors, and other businesses meeting size standards based on their North American Industry Classification System code.

The Paycheck Protection Program’s maximum loan amount is 10 million dollars with a fixed 1 percent interest rate and maturity of two years.

  • The loans are available to cover up to eight weeks of average monthly payroll (based on 2019 figures) plus 25 percent and payments are deferred for six months (interest does accrue). The SBA will forgive the portion of loan proceeds used for payroll costs and other designated operating expenses for up to eight weeks, provided at least 75 percent of loan proceeds are used for payroll costs. Eligible expenses for the eight-week forgiveness include:
  • Payroll costs (excluding the prorated portion of any compensation above 100,000 dollars per year for any person. Payroll costs include salary, commissions, tips; certain employee benefits including sick leave and health care premiums, and state and local taxes;
  • Mortgage interest (not prepayment or principal payments) and rent payments on mortgages and leases in existence after February 15, 2020;
  • Utilities such as electricity, gas, water, transportation, phone and internet access for services that began before February 15, 2020; and
  • Additional wages paid to tipped employees.

Visit www.SBA.gov/Coronavirus for additional resources about protecting your business, employees and customers.

Source: U.S. Small Business Administration

related articles:

popular articles:

Thumbnail-Photo: Social commerce opportunities on TikTok for merchants...
31.10.2020   #online trading #social media

Social commerce opportunities on TikTok for merchants

Partnership between Shopify and TikTok

On TikTok, businesses of all sizes are empowered to grow their brands through creative content and storytelling. Since we launched the TikTok For Business platform, we've seen brands around the world make real connections with our users by ...

Thumbnail-Photo: 4 tips on how to handle customer complaints
13.08.2020   #consulting #customer satisfaction

4 tips on how to handle customer complaints

How you can effectively respond to negative reviews and use them to be a benefit to your company

Most retailers don’t like customer complaints. Plus, they also mean extra work. Yet ignoring complaints is not a great long-term strategy because any bad customer experience can haunt your brand if it becomes public. That’s why retailers ...

Thumbnail-Photo: Spotlight on ... city centre
15.09.2020  

Spotlight on ... city centre

Learn more about the challenges that city centres are currently facing in our focus topic

What attracts customers to city centres these days? You can find possible answers to all aspects of city marketing with us. ...

Thumbnail-Photo: Boom time for bicycle retailers
28.09.2020   #online trading #customer satisfaction

Boom time for bicycle retailers

What is the recipe for success? iXtenso visited three bicycle retailers

What does it take to be successful during these growth times? iXtenso looks at three very different retailers – from online, to offline and all that lies between. Find out more in our exclusive video! ...

Thumbnail-Photo: First South Asian local food and grocery marketplace in U.S....
27.11.2020   #online platform #food delivery service

First South Asian local food and grocery marketplace in U.S.

Based in Chicago, Quicklly expands to San Francisco Bay Area

Quicklly, the first and only South Asian local food and grocery marketplace in the US, announced its first expansion city – the San Francisco Bay Area. Customers throughout the city of San Francisco extending south through to San Mateo have ...

Thumbnail-Photo: Event: E-commerce Berlin Expo 2021
28.08.2020   #online trading #e-commerce

Event: E-commerce Berlin Expo 2021

E-commerce Berlin Expo is the biggest pure-play e-commerce event in the (tech) capital city of Germany. Over 9,000 visitors and 200 exhibitors are expected every year.

E-commerce Expo views itself as a community and a meeting point for all major decision-makers in the e-commerce sector. We bring together leaders in the e-commerce industry to offer online sellers and retailers the opportunity to develop their ...

Thumbnail-Photo: Merchants can build their own businesses by choosing the right daily...
10.08.2020   #e-commerce #online platform

Merchants can build their own businesses by choosing the right daily deal platforms

Bargaining and the three-way transaction that defines the daily deal market

Researchers from the University of Maryland and Harvard University analyzed the bargaining process between the daily deal platforms Groupon as well as LivingSocial and merchants to identify the trade-offs made by both parties during the transaction ...

Thumbnail-Photo: Walmart brings the big screen to its parking lots...
14.08.2020   #POS marketing #marketing

Walmart brings the big screen to its parking lots

Retailer’s first-ever drive-in movie theater

Walmart is lifting the curtain on plans for the Walmart Drive-in, a drive-in movie theater experience, which is rolling into 160 Walmart stores across the country beginning this month, created in partnership with the Tribeca Film Festival.Available ...

Thumbnail-Photo: Textile recycling system ’Looop’ by H&M
14.10.2020   #sustainability #fashion

Textile recycling system ’Looop’ by H&M

Transforming unwanted garments into new fashion favourites

H&M offers customers in Sweden the possibility to transform unwanted garments into new fashion with the help from their new garment-to-garment recycling system ‘Looop’. This machine visualizes to customers that old textiles hold a ...

Thumbnail-Photo: 3 steps to personalisation in e-commerce
04.08.2020   #online trading #e-commerce

3 steps to personalisation in e-commerce

How retailers can build trust and foster customer loyalty

The COVID-19 pandemic has left a visible mark on the retail sector, and companies have had to find new ways to reach consumers effectively in a very short time. Many companies that had previously focused on stationary retail have expanded their ...