As SBA Launches Paycheck Protection Program, Spanberger Urges Administration to Rapidly Deliver Forgivable Loans to Central Virginia Small Businesses
The SBA’s New Loan Program Will Assist Small Businesses in Covering Payroll Costs & Certain other Expenses During the COVID-19 Pandemic
HENRICO, V.A. – U.S. Representative Abigail Spanberger today announced that the U.S. Small Business Administration (SBA) has launched its Paycheck Protection Program (PPP), a new federal loan assistance program intended to deliver immediate financial relief to small businesses impacted by the coronavirus pandemic.
Under this program, loans will be fully forgiven if used by businesses to cover payroll costs, mortgage interest, rent, and utilities. Last Friday, President Trump signed the PPP program into law as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which Spanberger voted to pass earlier that day.
Following the opening of the PPP application today, Spanberger urged the SBA and participating lenders to make sure these funds are delivered to Central Virginia businesses, sole-proprietorships, and self-employed individuals in the most efficient and expedient way.
“In conversations with employers, sole-proprietors, and contractors across Central Virginia, I’ve heard absolutely heartbreaking stories. I’ve heard about extreme economic hardships, and I’ve heard businesses express deep concerns about whether government assistance will come soon enough to pay their dedicated employees and keep their longstanding operations afloat,” said Spanberger. “The administration needs to recognize how grave the current financial situation has become for Main Street. In response to this crisis, PPP loans must be distributed as soon as possible, because these loans have the power to preserve the livelihoods of many of our neighbors. The SBA must act quickly to implement this program — and I encourage any Virginian needing help or experiencing issues with the PPP program to reach out to my office. Our small businesses and their employees can’t afford to wait for federal bureaucracy to sort itself out — they need assistance now.”
A sample PPP application form can be found here.
PPP loans are available to any business with 500 or fewer employees—and loans will be available during a covered period for independent contractors, self-employed workers, and sole proprietors. If a business fires employees or cuts employee pay, this loan forgiveness will be reduced.
Last night, Spanberger hosted a telephone town hall with representatives from the U.S. Small Business Administration, the U.S. House Appropriations Committee, and the Office of the Governor of Virginia to discuss the impacts of COVID-19 on Central Virginia workers and small businesses. More than 3,400 Central Virginians listened in to the telephone town hall. Click here to listen to the full event.
And earlier this week, Spanberger released a small businesses resource guide to help Central Virginia small businesses navigate the financial impacts of COVID-19. Click here to download the small businesses resource guide.