Three Things to Know: June 5, 2020 PPP Update, New Federal Assistance Programs, and Sector Info
1. The Paycheck Protection Program received changes this week confirmed by both the House/Senate. The new changes extends the timeframe to use funds from eight weeks to 24 weeks, and businesses can now use 60% of the funds on payroll (before, it was 75%).
In addition, businesses now have until December 31, 2020 to rehire employees, five years to repay loans instead of two, and the bill allows businesses to defer payroll taxes.
The 1% interest rate on the loans remains the same.
2. The list of available economic disaster assistance financial funds continues to grow.
In addition to the SBA Economic Injury Disaster Loan, Paycheck Protection Program, California Tax Payment Plan, and iBank Disaster Relief Loan there are two new sources of financial assistance. The USDA will have available funds via the Business and Industry CARES Act Program and The Federal Reserve will offer funds via the Main Street Lending Program.
Both programs will function as loans that are underwritten and approved by eligible lenders. Similar to the California iBank Loan Program, the loans work with a federal guarantee on the loan, so that a local bank would receive 85-95% of the loan value in repayment if a business goes into default before repaying.
For more information on the USDA Business and Industry Program click HERE
For more information on the Federal Reserve Main Street Lending Program click HERE
3. County of Tuolumne Public Health has shared that they expect the state may provide an update this evening on the roadmap to modifying the stay-at-home order. Tuolumne County will not be opening any sectors until additional guidance can be reviewed and further information from case investigations can be obtained.