Fox File #93: Payroll Protection Program
During past weeks, we have all dealt with the realities of the COVID-19 pandemic, and we are heartened by the proactive efforts and engagement of public and private sectors, working together to tackle the challenges we face. We express our profound appreciation to each of you for how you have undertaken efforts to minimize losses (both health and economic) in your communities and respective organizations.
The state of Utah, in usual and expected fashion, has banded together to find solutions and actionable responses to “Protect the Hive.” Public and private sectors have worked with Governor Gary R. Herbert in the creation and implementation of “Utah Leads Together,” the state’s plan for a health and economic recovery. In the three phases of the plan: Urgent, Stabilization and Recovery, actions can be put into place to protect lives and livelihoods.
This week, the Utah Economic Response Task Force is focused on the Federal Stimulus. We have prioritized this focus area this week to ensure that all Utah businesses are aware of what is being made available in Phase 3 of the Federal Stimulus/CARES Act. There is urgency around this issue as the Phase 3 funds are finite.
Later this week, Governor Herbert will issue a call to action to local economic developers to ensure that Utah’s small businesses have been provided the information and tools necessary to take advantage of the government programs that have been made available. The state’s link at coronavirus.utah.gov is the comprehensive page that links you to resources currently available. Details of specific programs can also be found below:
- The CARES Act Paycheck Protection Program (PPP), is administered by the SBA, and applications are initiated by a business through a local lender. Program information can be found at sba.gov/coronavirus. Utah’s financial institutions (Utah Bankers Association and Utah Credit Union Association) have also posted detailed program information and applications found at utah.bank or utahscreditunions.org . Utah banks and credit unions are now processing applications for the PPP loans. Please note that the demand for these dollars is greater than the supply. It is imperative that local businesses act now—early this week—to qualify for the loans. Help your businesses determine which local banks and credit unions are now processing applications.
- The SBA Economic Injury Disaster Program (EIDL), where applications made through the SBA District office. See sba.gov/disaster
- The first round of Utah Leads Together Small Business Bridge Loan, offered to Utah small businesses with 50 or fewer employees is in place, for loan amounts from $5,000-20,000, utilizing $11 million in state funds to provide gap funding has been closed. The state’s Rapid Response Team is now working through the first round loan approvals. A second round of funding will begin April 13, 2020.
- A number of communities throughout the state have also created local small business loan programs. Check to see if any of those programs are available for businesses in your community.
We encourage our local economic development partners to work with city business licensing departments, local chambers of commerce, and business associations to reach out to small businesses now, to assure that they are aware of and can avail themselves of these programs offered to help mitigate the challenges of COVID-19.
We encourage all of our private partners to determine whether or not they might qualify for the SBA funding. Reach out to your local SBA Lender (bank or credit union) to make this determination. If you do not meet the requirements for some reason (your business size or otherwise), we also encourage you to reach out to your vendors, suppliers, and partners to make sure that word of these programs is distributed far and wide.