9 things to know about Small Business Administration loans

ORLANDO, Fla. — The more than two trillion dollar stimulus package approved by Congress last week is more than just checks to taxpayers.

One key part is a loan program most small businesses in Central Florida will rely on to still be in business when this crisis ends.

WFTV political reporter Christopher Heath shares his 9 things to know about SBA loans.

Watch: Coronavirus: How long is someone contagious after testing positive?

1. How Much? – $350 billion for a federal small business loan program called the Paycheck Protection Program. The money is designed to encourage businesses to retain employees during the COVID-19 outbreak.

2. Application? – There are more than 1,800 approved federal lenders who will process the loans. Businesses should contact their bank to begin the process of application.

3. Size of Loan – The loans are up to $10 million.

4. Is the Money Ready Now? – Yes. The money is part of the $2 trillion economic stimulus passed by Congress on Friday. The loans can cover any expenses between February 15 and June 30.

Watch: Questions remain over Florida unemployment checks: When will they come? How much will they be?

5. Interest Rate – The loans are capped at 4%.

6. Loan Forgiveness – Yes. The loan can be forgiven for costs associated with rent (or mortgage), interest payments and utilities as long as the company is able to retain employees during the crisis.

7. Non-Profits? – Yes. Non-profits as well as people who are self-employed can apply.

8. Restaurants? – Yes. The rules apply to food service as long as the location does not have more than 500-employees at a single location.

9. Other Loans – There are also a series of loans approved in previous stimulus packages. For more information click here.

© 2020 Cox Media Group