Pallone Announces Resources for Small Businesses and Nonprofits
Long Branch, NJ – Today, Congressman Pallone announced that small businesses and nonprofits will be able to apply for financial assistance beginning Friday, April 3. Last week, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the third major legislation passed by Congress to respond to the coronavirus pandemic, which provides relief for small business owners.
“Right now, it is critical that we help our small businesses and local nonprofits during this time of economic uncertainty. I was proud to lead the effort in Congress to pass legislation that provides grants and loans to help weather the ongoing economic storm,” Congressman Pallone said. “Small businesses and nonprofits are the backbone of our community, and I will continue to fight for them during this difficult time. I strongly encourage small businesses to take advantage of these opportunities as soon as possible. Anyone who has questions can call my offices directly for assistance.”
A fact sheet on the Paycheck Protection Program (PPP) from the Department of Treasury is available here. Click here for the Small Business Administration's resource page, which includes an overview of several relevant programs including PPP. Small business owners in New Jersey can also visit the State’s website here. Applications will be accepted through any Small Business Administration (SBA) approved lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. Small businesses are encouraged to contact their lending institutions directly for more information.
The CARES Act provides:
- A Paycheck Protection Program (PPP): $349 billion in 100 percent guaranteed, low interest, no fee loans of up to $10 million with repayment deferred for at least six months; up to 100% of the loan is forgivable if the borrower has retained the same number of employees as when they received the loan. Small businesses that employ up to 500 employees are eligible. Non-profits, sole proprietors, independent contractors, gig economy workers, and self-employed individuals are all eligible for the Paycheck Protection Program.
- Debt Relief: $17 billion for debt relief for current and new SBA borrowers. The Small Business Administration will pay the principal and interest for the next 6 months on SBA-backed loans.
- Immediate Disaster Grants: $10 billion in immediate disaster grants. Using the current economic injury disaster loan program, SBA can provide up to $10,000 to applicants within 3 days of applicants self-certifying they are eligible.