PROVIDENCE, R.I. \u2014 SBA Administrator\u00a0Jovita Carranza\u00a0and Treasury Secretary\u00a0Steven T. Mnuchin recently announced that SBA and Treasury Department have initiated a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need.\nThe CARES Act establishes a new $349 billion Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed.\n\u201cThis unprecedented public-private partnership is going to assist small businesses with accessing capital quickly. Our goal is to position lenders as the single point-of-contact for small businesses \u2013 the application, loan processing, and disbursement of funds will all be administered at the community level,\u201d said Administrator Carranza. \u201cSpeed is the operative word; applications for the emergency capital can begin as early as this week, with lenders using their own systems and processes to make these loans. We remain committed to supporting our nation\u2019s more than 30 million small businesses and their employees, so that they can continue to be the fuel for our nation\u2019s economic engine.\u201d\n\u201cThis legislation provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed,\u201d said Secretary Mnuchin. \u201cTreasury and the Small Business Administration expect to have this program up and running by April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day.\u00a0 The loans will be forgiven as long as the funds are used to keep employees on the payroll and for certain other expenses.\u201d\nThe 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 \u2013 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.\nThe Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed. \nVisit\u00a0SBA.gov\/Coronavirus\u00a0for more information on the Paycheck Protection Program.\n\n\n \tThe new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.\n\nLoan Terms & Conditions\n\n\n \tEligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries\n \tMaximum loan amount up to $10 million\n \tLoan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)\n \tAll loans under this program will have the following identical features:\n\n \tInterest rate of 0.5%\n \tMaturity of 2 years\n \tFirst payment deferred for six months\n \t100% guarantee by SBA\n \tNo collateral\n \tNo personal guarantees\n \tNo borrower or lender fees payable to SBA\n\n\n\nSBA\u2019s announcement comes on the heels of a series of steps taken by the Agency since the President\u2019s Emergency Declaration to expeditiously provide capital to financially distressed businesses affected by the Coronavirus (COVID-19) pandemic. Since March 17, SBA has taken the following steps:\n\n\n \tDeclared all states and territories eligible for Economic Injury Disaster Loan\u00a0assistance\n \t1-year deferment on Economic Injury Disaster Loans provided due to COVID-19\n \tAutomatic deferment of previous disaster loans for homeowners and businesses through 2020\n \tWaiver of garnishments through 2020\n\nVisit\u00a0SBA.gov\/Coronavirus\u00a0for more information on SBA\u2019s assistance to small businesses.