Businesses small and large are asking what they can do to help reduce the spread of the Coronavirus, how to keep their employees and customers safe, and what this means for their business. We’ve compiled a short list of resources to help you navigate your role as a member of the business community:
The City is tracking provisions of the CARES Act closely. Below you will find additional information related to funding programs available to small businesses affected by the coronavirus including the U.S. Small Business (SBA) Economic Injury Disaster Loans and the Paycheck Protection Program.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
The Paycheck Protection Program, one of the largest sections of the CARES Act, is the most important provision in the new stimulus bill for most small businesses. This new program sets aside $350 billion in government-backed loans, and it is modeled after the existing SBA 7(a) loan program many businesses already know. The Program is in effect for the period of February 15, 2020 through June 30, 2020.
Current 7(a) lenders, which includes most banks and credit unions, have delegated authority to make and approve loans. The loan amount under the Paycheck Protection Act is generally based on average monthly payroll costs, with the maximum capped at $10 million, and an interest rate no higher than 4%. No personal guarantee or collateral is required for the loan. Lenders are expected to defer fees, principal and interest for no less than six months and no more than one year.
Small businesses that take out Paycheck Protection Program loans can get some or all of their loans forgiven. Generally speaking, as long as employers continue paying employees at normal levels during the eight weeks following the origination of the loan, then the amount they spent on payroll costs (excluding costs for any compensation above $100,000 annually), mortgage interest, rent payments and utility payments can be combined and that portion of the loan will be forgiven.
The CARES Act also expands eligibility for the SBA’s Economic Injury Disaster Loans (EIDLs). In early March, the SBA’s disaster loan program was extended to all small businesses affected by COVID-19, but the CARES Act opens this program up further and makes it easier to apply. Small businesses can get both an EIDL and a Paycheck Protection Program loan as long as they don’t pay for the same expenses.
For more information, contact your local 7(a) lender.
Let’s Get You on the Map
The City of Chandler has created an interactive map for businesses to submit specials, services (delivery, takeout, curbside pickup), and if they are hiring. Help us help you and submit your business. We’ll be sharing on our social media platforms for
Let Us Know Your Concerns
Mayor Kevin Hartke, Chandler City Council and City leadership are committed to providing the resources needed to assist local businesses during this time of uncertainty.
Please let us know what your needs and concerns are and we will do our best to address them.