City Encourages Small Businesses to Use New Paycheck Protection Program Application

City of New Orleans Encourages Small Businesses to Use New Paycheck Protection Program Application

The Small Business Administration and the Department of Treasury have announced that they have initiated a mobilization effort of banks and other lending institutions to provide small businesses with the assistance they need. Small businesses and eligible nonprofit organizations, veterans organizations, and tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

For more detailed Paycheck Protection Program information, follow the links below through the City’s NOLA Ready site:

• Download a top-line overview of the program
• If you’re a lender, download more information
• If you’re a borrower, download more information
• Download the application for borrowers

Loan Terms & Conditions

• Eligible Entities: 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
• Maximum loan amount up to $10 million
• Loan 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)
• All loans under this program will have the following identical features:
  • Interest rate of 1%
  • Maturity of 2 years
  • First payment deferred for six months
  • 100% guarantee by SBA
  • No collateral
  • No personal guarantees
  • No borrower or lender fees payable to SBA

Businesses are encouraged to visit the Small Business Administration's site to read more about the program or for assistance.