Local News

Forgivable small business loans available now

Tennessee Governor Bill Lee announced today that Tennessee small
businesses impacted by the COVID-19 crisis are eligible to apply for loan assistance through the U.S. Small Business Administration’s new Paycheck Protection Program (PPP). Businesses can begin applying for these loans with eligible financial institutions beginning Friday, April 3.

The new $349 billion loan program – a major piece of the Coronavirus Aid, Relief and Economic Security (CARES) Act will provide much-needed relief to small businesses and help companies keep their workers employed and sustain operations.

“This unprecedented relief is absolutely vital for Tennessee’s small businesses, workers and Main Street economy to weather the impact of COVID-19,” Lee said. “I encourage our small businesses to access the SBA’s new forgivable loan program to ensure Tennesseans continue to get a paycheck during these difficult times.”

The PPP is designed to assist small businesses with their payroll and other business operating expenses. The SBA will fully forgive PPP loans that are used to cover the first eight weeks of payroll, rent, utilities and mortgage interest. Due to likely high subscription, at least 75 percent of the forgiven amount must be used for payroll purposes. Loan forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels through June 30.

Businesses can apply through existing SBA 7(a) lenders or federally insured banks and credit unions. The SBA advises businesses to consult with their local lenders to confirm their participation in the program.

For the application, click here. More information is available on the SBA website. •

{The Lynchburg Times is an independently owned and operated newspaper that publishes new stories every morning. Covering Metro Moore County government, Jack Daniel’s Distillery, Nearest Green Distillery, Tims Ford State Park, Motlow State Community College, Moore County High School, Moore County Middle School, Lynchburg Elementary, Raider Sports, plus regional and state news.}

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