The Technology & Manufacturing Association distributed the following information to their membership Thursday, April 2, 2020 concerning the Paycheck Protection Program in response to America’s COVID-19 crisis:
The CARES Act Paycheck Protection program is one to which you MUST pay attention. In a nutshell: US CARES Act Loans are for small and mid-size manufacturers who have less than 500 employees.
The loan is originated by your local bank or lender.
There is NO personal guarantee or asset pledge required.
There is NO recourse to the lender, except for fraud on the part of the borrower.
The loan is 100% guaranteed to your bank by the federal government.
The loan amount is approximately 2.5 times your monthly payroll.
With your lender, you select your 2 month “qualifying” period & you document the allowable costs.
The loan is available quickly (goal is 2-3 weeks).
Whatever you spent in the two months following the loan approval, on the “qualified expenses” (including group health costs, plus any rent or mortgage interest for two months, plus two months of utilities), is documented to your lender and then FORGIVEN by the SBA.
Attached is a sample loan application. This has not been officially approved, but will give you a sense of the process. Click to view or download.
Also to the right is a brief explanation of the program from the U.S. Chamber of Commerce. Click to view or download.
Please contact your banker as soon as possible to begin an application. The appropriated amount is limited and there is concern about applications exceeding the appropriation. If you don’t have a bank, contact us and we will assist in connecting you with one of several who are fellow TMA members.