On behalf of Senior Vice President for NAIOP Government Affairs, Aquiles Suarez –
Yesterday the White House sent an e-mail with important information — copied in part below, after this message. It contains links to various documents and the Treasury info site. The following are the most important ones can be downloaded:
According to some reports, the SBA may have a site up this week and will be able to fund these loans, possibly as soon as Friday.
IMPORTANT: These loans will be provided on a first-come, first-served basis.
I expect that NAIOP members will want to get this information in the hands of their tenants and call their attention to the availability of these funds.
For those tenants who may be concerned about taking on additional debt during this time, the borrower fact sheet is useful in providing some comfort in this regard (see below). Note that SBA says not more than 25% of any amount forgiven may be for “non-payroll” cost (presumably, rent):
From the Borrower Fact Sheet:
The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8-week period after the loan is made; and
- Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for 6 months.
The White House message follows:
Subject: Update on Administration COVID-19 Efforts 03/31/20
Following President Trump’s signing of the historic Coronavirus Aid, Relief, and Economic Security (CARES) Act, SBA Administrator Carranza and Treasury Secretary Mnuchin today announced that the SBA and Treasury Department have initiated a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need. The CARES Act establishes a new $349 billion Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed. More information can be found below and on Treasury’s CARES Act website: https://home.treasury.gov/cares.
Assistance for American Workers and Families
In the weeks immediately after the passage of the CARES Act, Americans will see fast and direct relief in the form of Economic Impact Payments. For more information, CLICK HERE.
Assistance for Small Businesses
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
Press Release: With $349 Billion in Emergency Small Business Capital Cleared, Treasury and SBA Begin Unprecedented Public-Private Mobilization Effort to Distribute Funds (HERE)
Press Release: Treasury Encourages Businesses Impacted by COVID-19 to Use Employee Retention Credit (HERE)
Information for Businesses: