NM firms urged to apply quickly for loans

Marco Green
April 8, 2020

Funded through the new federal COVID-19 relief bill, the CARES ACT, the $350 billion PPP program offers small businesses and non-profits up to eight weeks of payroll costs, with a forgiveness component.

Sen. John Hoeven, R-N.D., says: "This assistance is about keeping small business employees on payroll and helping independent contractors, sole proprietors and entrepreneurs to get by".

The applications require a myriad of documents, such as tax returns from anyone with at least 10 percent ownership; the business formation documents; several consecutive years of the business's federal tax returns and financial documents such as income and cash flow statements, and balance sheets.

"The loans are created to be used for payroll for the eight-week period following loan funding", explained Darren Guidry, Chief Credit Officer and Vice President of Home Bank. If they retain or rehire workers already impacted by the pandemic, some or all of the loans may be forgiven.

This second program from the EDA provides direct loans of up to $100,000 to New Jersey-based small businesses and nonprofits that have been in existence for at least one year and have less than $5 million in annual revenue.

"Not knowing how long it's going to last, I made a decision to just go ahead and go through with the application", said Zerangue.

Financial institutions are "processing hundreds of thousands of loans", the president said Tuesday.

"Just makes it easier on the owner, not so much stress, knowing that you don't have to take out of your personal savings to keep your business going", said Zerangue.

Independent contractors and people who are self-employed can apply starting April 10.

If your business has been hurt by the pandemic, you can find a lender and the Paycheck Protection Program application form on the U.S. Small Business Administration's website. The deadline to apply for an Economic Injury Disaster Loan is December 21, 2020.

Other reports by Click Lancashire

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