The Manhattan Area Chamber of Commerce thanked the Manhattan City Commission for approving the funding of a new disaster assistance fund for Manhattan businesses. The Chamber will have $500,000 to loan to Manhattan businesses that have an immediate need. The intent is for the fund to serve as a bridge to something more sustaining whether that is local, state or federal.
The application for the loan which can be up to $5,000 (greater under certain circumstances)can be found here.
In the meantime, our economic development staff continues to work with local and regional businesseson linking to available assistance programs. Some updates of the two most significant programs arebelow. In the past 24 hours, the federal government has released additional details on the new PaycheckProtection Program (PPP) which provides assistance to small business and non-profits. See below forthe latest on both PPP and the SBA's Economic Injury Disaster Loans.
CARES Act Paycheck Protection Program (PPP) - On March 27th President Trump signed into law theCARES Act, which provided additional assistance for small business owners and non-profits. The PaycheckProtection Program (PPP) includes a loan program components that are forgivable. Reference the SBAwebsite and the linked PPP Fact Sheet for full details.
SBA Paycheck Protection Program (PPP) WebsitePPP Program Fact Sheet (US Treasury)
PPP Loan Application (this program is run through financial institutions, contact your lender)
- Timing - Lenders may start processing as soon as April 3rd (small businesses and sole proprietors)or April 10th (independent contractors and self-employed)
- Loan Amount - can be up to 2 times average monthly payroll costs plus 25% of that amount
- Deferment - 6 months but interest accrues over that period
- Forgiveness- Forgivable uses remain the same but only 25% of forgivable amount can be used for non-payroll costs- Forgiveness reduced if decreased full-time employee headcount- Forgiveness reduced if decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019- Have until June 30 to restore full-time employment and salary levels for any changes made between Feb 15 and April 26
- No collateral and no personal guarantee required
SBA Economic Injury Disaster Loan (EIDL) - Low interest (3.75%, long term (up to 30 years) loanfor up to $2 million (amount determined by business expenses and debt payments). The first payment isdeferred for 12 months. The application has been simplified and can be completed 100% online throughSBA's improved web portal.
Economic Injury Disaster Loan Advance for up to $10,000: The form to apply is part of the economic injurydisaster loan application. If approved, these funds can be used for payroll and other operating expenses andwill be forgiven. *** If you wish to apply for the Advance on your EIDL, please visit https://covid19relief.sba.govas soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need tosubmit this new application even if you previously submitted an EIDL application. Applying for the Advance willnot impact the status or slow your existing application. ***