MEDFORD, Ore. – Coronavirus is affecting more than just the immune system. Our nation’s economy is also in jeopardy from going into another recession. The federal government is doing something about it.
Starting tomorrow small businesses can start applying for the U.S. Department of Treasury’s loan program is called the ‘Paycheck Protection Program’. This is to help relieve some of the stress during these uncertain times.
Danielle Amarotico is the managing owner of Common Block Brewing Company in Medford. Like many other businesses in the Rogue Valley times are tough.
“Small businesses and large businesses too have so many fixed overhead expenses that certainly cannot be paid, at least on our scale even on take-out programs,” said Amarotico.
But when Amarotico heard about the Small Business Paycheck Protection Program it gave her restaurant hope.
“From what we can tell it’s extremely generous. It definitely feels like everybody is in this together. And that the government is trying their best to get everybody back to normal,” said Amarotico.
She says she’s already started filling out the application and says it’s pretty straight forward.
If your business has under 500 employees and its losses are because of coronavirus it could be eligible.
Medford-based People’s Bank, Julia Beattie, says “We are very aware that businesses in our community are being significantly impacted.”
The bank is offering loans through the program. Julia Beattie says the bank’s already preparing for a rush of applications Friday.
“We anticipate such a significant volume,” said Beattie.
The loans can provide qualifying businesses up to 2.5 times its average monthly payroll. But People’s Bank says businesses can also use 25% of the funds to pay interest on mortgages, rent, even utilities. Small businesses only qualify if they haven’t laid staff off. They must also apply through an existing SBA 7 (a) lender. Independent contractors and people who are self-employed can apply for the program on April 10th.
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