Small businesses can apply for loans in stimulus package

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OKLAHOMA CITY (KFOR) – Small businesses could be getting some much-needed relief from the effects of the COVID-19 pandemic.

The CARES Act, which was recently signed into law by President Donald Trump, includes about $350 billion in loans for small businesses.

The Paycheck Protection Program went live on Friday, but Adrian Beverage, chief of staff of the Oklahoma Bankers Association, says there could be some delays with getting funds out.

“This is coming so fast and furious for not only the folks lending the money, but also the small businesses. And they’re the ones that need the money because they’ve been the most impacted,” Beverage said.

He says there has been some confusion with banks on how to get loans out and what the qualifications are.

“There are still some questions about the program our bankers are asking but for the most part, we’ve got a lot of banks that are particIpating in the program and doing whatever they can do to get their small businesses back up and running,” he said.

Beverage says while the rocky start could mean delays, he believes every business that needs a loan will be able to get one.

“The intent of the CARES Act is to get as much money into these small businesses as possible and as quickly as possible,” he said.

Loans are available to small businesses with less than 500 employees, independent contractors, and sole proprietors.

Small businesses that apply would have to show payroll documentation, and that’s what will be used to calculate how much the loan will be for each business.

“It’s not like your normal loan, there’s no personal guarantees, there’s no collateral,” Beverage said.

If the small business uses 100 percent of the loan on payroll, keeping workers on the books, rent, or utilities, then that loan will forgiven.

Beverage also says it’s possible more help could come if needed.

“We’ve been told, among other things from Washington, that the Treasury has been authorized to have additional funds put in this program should they go through the $350 billion real quick,” he said.

For more details, you can go to the Small Business Administration website here. For the U.S. Department of Treasury, click here.