Small businesses and agricultural businesses in the CNMI looking to apply for a loan under the U.S. Small Business Administration’s Paycheck Protection Program would need to do so quickly before the June 30, 2020 deadline.
SBA’s Paycheck Protection Program helps small businesses affected by the COVID-19 pandemic with funding to keep their employees on payroll, or to pay rent, mortgage interest, or utilities.
The program provides eligible employers the opportunity to receive a federally-guaranteed loan covering 100% of the cost, on the condition that they keep all their employees on payroll for up to eight weeks. Loan payments will also be deferred for six months, and no collateral or personal guarantees are required.
Based on the report of loan approvals through June 20, SBA has approved 4.6 million Paycheck Protection Program loans worth $514.9 billion so far. In the CNMI, 440 loans have been approved, worth $38,159,067.
Aside from the Paycheck Protection Program, SBA also oversees the Economic Injury Disaster Loan program, providing low-interest federal disaster loans as working capital for small businesses in the CNMI that have been hit by COVID-19 since Jan. 31. Up to $2 million in economic injury disaster loan may be availed of by qualified small businesses, private non-profit organizations, small agricultural cooperatives, and small aquaculture enterprises impacted by the pandemic, to help with their operating expenses.
As of June 21, based on the latest economic injury disaster loan report dated June 21, SBA has disbursed 3.7 million advances, worth $12.3 billion. The CNMI has 151 approved economic injury disaster loans, worth $726,000.
To avail of the Economic Injury Disaster Loan, small businesses may apply online, or download applications at https://disasterloan.sba.gov/ela. The deadline to apply is Dec. 21, 2020, subject to the availability of funds.
Paycheck Protection Program application forms may be downloaded via https://sablan.house.gov/sites/sablan.house.gov/files/documents/PPP-Borrower-Application-Form-Fillable.pdf