The U.S. Treasury Department released new information on Tuesday afternoon for small businesses affected by the COVID-19 crisis. The resources distributed by the agency provide guidance on how to tap into the $340 billion pool of relief funds set aside for the small business sector.
Under the Small Business Administration’s (SBA) Paycheck Protection Program, businesses with fewer than 500 employees are eligible to receive the lesser of $10 million or 2.5 times its payroll over the period of several months.
Banks will distribute the funds in the form of loans granted under criteria contained in the law. Loans may become available as soon as Friday, April 3.
Call your banker
That is the advice the Treasury Department is giving to small businesses.
The chairman of the Alabama Bankers Association has stated that banks in his state are ready, willing and able to immediately assist with the small business sector’s recovery.
“Banks in our state are already very familiar with helping customers access SBA funding,” said David Nast, president and CEO of Progress Bank and Trust. “Nearly 94% of banks headquartered in Alabama are SBA-approved lenders, and that number could easily grow higher over the next few weeks.”
RELATED: Alabama banks preparing to assist small businesses with recovery — ‘Call your banker’
Nast echoed the Treasury Department’s advice that interested small businesses should promptly contact their bank.
“Regardless of how banks are interacting with their customers, our advice for individuals and small businesses has been to put ‘Call Your Banker’ near the top of the to-do list,” Nast emphasized.
Info for small businesses
The Treasury Department is maintaining a comprehensive website for those seeking information about the economic stimulus programs it is administering.
Within the site are documents for small businesses to better understand the programs designed for them and how to apply for funds:
Overview of the Paycheck Protection Program
Paycheck Protection Program Information for Borrowers
Paycheck Protection Program Information for Lenders
Tim Howe is an owner of Yellowhammer Multimedia
