Small Business Loans Available Friday
Small business loans under the CARES Act, a federal aid package developed in response to the COVID-19 pandemic, will be available for application beginning Friday.
Starting on April 3, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing Small Business Administration (SBA) lenders.
Independent contractors and those who are self-employed can begin applying on April 10.
“This new loan program will help Hawai‘i small businesses meet their payroll and provide people with paychecks for up to eight weeks,” said Sen. Brian Schatz, a member of the Senate Appropriations Committee. “It’s important that people apply as soon as they can to make sure they have the help they need to ride this out.”
The new SBA Paycheck Protection Loan Program, created through the CARES Act, provides small businesses with zero-fee loans of up to $10 million to cover payroll and other operating expenses. Up to eight weeks of payroll, mortgage interest, rent and utility costs can be forgiven.
Payments on principal and interest are deferred for six months and up to one year. The interest rate on any part of the loan not forgiven has been set at 0.5%. Due to expected high demand, borrowers are encouraged to apply as early as possible.
For more information on eligibility and directions on how to apply, click here.