BRAC urges small businesses to apply quickly
Baton Rouge, La. (April 1, 2020) – Yesterday afternoon, the U.S. Treasury issued guidance and the application for businesses interested in assistance through the Paycheck Protection Program (PPP), part of the CARES Act that was signed into law on March 27, 2020. BRAC encourages businesses to fill out the application now, in preparation for submission to an SBA-approved lender starting April 3.
“Businesses should prepare now to apply on April 3,” said Adam Knapp, president and CEO of BRAC. “The PPP has a total appropriation of $349 billion, and we want to give lenders as much time to process the loans as possible before running up against that limit.”
The PPP provides forgivable cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. Beginning April 3, small businesses and sole proprietorships can apply for and receive forgivable loans under the PPP. Beginning April 10, independent contractors and self-employed individuals may do the same.
- Capital Region SBA-approved lenders may be found here.
- The application may be found here.
- An overview of the PPP may be found here.
Loan details include:
- Loans can be for up to two months of average monthly payroll costs from the last year, plus an additional 25 percent of that amount, subject to a $100,000 per employee cap and a $10 million total cap
- Interest rates are fixed at 0.50 percent
- All payments are deferred for the first six months
- There are no prepayment penalties or fees
- No collateral is required
- No personal guarantee is required
- Loans are due in two years
- Each eligible entity is limited to a single PPP loan
To take advantage of loan forgiveness, loans must be used for the following, within certain time limitations:
- Payroll costs, including benefits (includes salaries, wages, commissions, tips, leave, health insurance, retirement, and state and local taxes on compensation)
- Interest on mortgages
More information on the PPP may be found at brac.org/recovery. This page is being regularly updated to provide businesses with guidance and resources for recovery.
About the Baton Rouge Area Chamber
The Baton Rouge Area Chamber (BRAC) leads economic development in the nine-parish Baton Rouge Area, working to grow jobs and wealth and to improve the business climate and competitiveness in the region. Today, BRAC investors include more than 1,500 small businesses, mid-sized firms, large industry and entrepreneurial startups, as well as individuals and organizations that support business and economic development. In this capacity, BRAC serves as the voice of the business community, providing knowledge, access, services and advocacy. More information is available at brac.org.