NORTHWEST ARKANSAS, (KNWA/KFTA) – Banks prepare to process thousands of SBA loan applications as another $320 billion has been made available to businesses in need.
According to the U.S. Small Business Administration, the first roll-out of the paycheck protection program has helped nearly 15,000 businesses in the state, and one of the best things about these loans is that they can be completely forgiven.
The program was designed to keep your employees working during the COVID-19 crisis.
The SBA states that the money has to be used on payroll, utilities, mortgage interest and rent for at least 8 weeks after getting the loan.
At least 75% of the funds have to be used for staff payroll to be completely forgiven.
Jason England is the Senior V.P. for commercial banking at Arvest. He said he’s waiting on the guidelines by the SBA on how the forgiveness process will work. In the meantime, he advises keeping records on exactly how you spend every penny.
“If you continue to do what you did before the COVID- 9, which is to pay your people… if you continue to do that then, in theory, you should be able to have this loan forgiven.”
If salaries, wages, or the number of employees you have decreases during the time period, it could reduce the amount of forgiveness you get.
The PPP loan program application process reopens on Monday, April 27.