Are you the owner of a petroleum marketing business with 500 or fewer employees? If so, you may qualify for the U.S. Small Business Administration (SBA) and the Treasury Department’s Paycheck Protection Program (PPP) or the Economic Injury Disaster Loan (EIDL) program.
The application process opened on Monday, April 6, 2020, but many banks report they’re overwhelmed with the interest. Nonetheless, it’s important you take action as soon as possible. In its latest weekly review, PMAA encouraged all small business petroleum marketers to fill out a borrowers’ application as soon as possible. They also recommend you schedule an appointment with your local lender to make sure they’re participating in these programs. If not, you may need to transfer your banking needs to an entity who does.
Let’s take a closer look at what you can expect from each program:
The Paycheck Protection Program (PPP) authorizes up to $349 billion in forgivable loans to small businesses in order to pay their employees during the coronavirus crises. The loan terms are the same for everyone, but to receive the money, it’s important you follow two specific guidelines:
Under the program, payroll costs are capped at $100,000 per employee. In addition, your first loan payment is deferred for six months.
You aren’t required to take action right away, but the sooner you do, the more likely you are to receive money. Currently, the PPP plan requires all applicants to file a request by June 30, 2020. In addition to filling out a loan application, which you can access here, you’ll need to provide the SBA with your local lender’s information and your businesses’ payroll documentation.
Under this new program, the SBA’s “Credit Elsewhere” requirement is also waived. This means you don’t have to try and obtain loan funds from somewhere else first.
We’re all facing uncertain times, but participating in the PPP program is a safe and effective way to protect your employees and livelihood. For more information about the program, click here.