How Small Businesses Can Apply For $369 Billion In Coronavirus Loans: Application Processing Begins

Update: 4:15 p.m. EDT

By 3 p.m. 6,820 paycheck protection loan applications seeking more than $2 billion had been submitted, SBA Administrator Jovita Carranza tweeted.

Many of the largest banks said early Friday they weren't ready to accept the loan applications, apparently waiting for final rules from the Treasury Department and SBA. JPMorgan Chase didn't open up the process until afternoon, the Wall Street Journal reported.

Original story:

The Small Business Administration on Friday opened applications for $369 billion in loans to offset the impact of the coronavirus pandemic, which has brought the U.S. economy to a screeching halt. The programs are open to companies with fewer than 500 employees.

The application process for economic injury disaster loans and the paycheck protection program comes as Bureau of Labor Statistics figures pegged March unemployment at 4.4% -- the survey taken one week before 10 million Americans began turning in unemployment applications.

The paycheck protection program provides funds to allow employers to keep workers on the payroll. The two-year, 1% loans are being made through banks, credit unions and the farm credit system.

“The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent and utilities [due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll]. Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees,” the SBA said.

The program is in effect through June 30. The application can be found here.

The economic injury loans provide $10,000 and will not have to be repaid. Small businesses that are losing revenue because of the pandemic, and some businesses with more than 500 employees in certain industries also are eligible. Applications for the economic injury loans are available here.

Bank of America said it received 35,000 applications shortly after its portal opened.

Some 297 million people are affected by stay-at-home orders, shuttering all nonessential businesses, in at least 38 states, 48 counties, 14 cities, the District of Columbia and Puerto Rico to attempt to stem spread of the virus, which has infected more than a quarter-million Americans, killing more than 6,600.

Many of the stay-at-home directives have been extended through April 30.