Governor Kay Ivey is urging Alabama’s small businesses to gird themselves against the coronavirus-caused economic conditions by applying for financial relief from the federal government.
According to the governor’s office, the final guidelines for how the relief is to be distributed will be released soon.
However, Ivey is urging business owners to contact “their local banker, accountant, financial advisor or credit union” immediately so they can be ready for the resources when they become available.
“I urge business owners to act today and be prepared to apply for assistance designed specifically to get them in front of the line when relief checks are written,” said Ivey in a statement.
The main source of federal relief available for small businesses is a $349 billion fund called the Paycheck Protection Program (PPP) that was created as part of the $2.2 trillion federal stimulus bill.
All the loans administered by the PPP will be fully forgivable as long as two conditions are met.
Those conditions are:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained.
A detailed breakdown of the Paycheck Protection Program is available here.
The loans are available “through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating,” according to the governor’s office.
Governor Ivey’s full letter to the state’s small business community can be read here.
A breakdown of the U.S. Treasury Department’s COVID-19 relief efforts can be accessed on the Treasury’s website.
Henry Thornton is a staff writer for Yellowhammer News. You can contact him by email: henry@new-yhn.local or on Twitter @HenryThornton95.
