SBA Paycheck Protection Program Open In NJ

Agency Creates Portal to Help Small Businesses Locate Lenders

On Apr 3, 2020

Applications for the U.S. Small Business Administration’s Paycheck Protection Loans are now open in in New Jersey. The Paycheck Protection Program, the cornerstone of the bipartisan Coronavirus Aid, Relief and Economic Security Act signed by President Trump, provides direct incentives for small businesses to keep their workers on their payrolls.

“The applications process is open and we’re hitting the ground running,” said SBA Atlantic Regional Administrator Steve Bulger, who oversees agency activities for New Jersey, New York, Puerto Rico and the U.S. Virgin Islands.  “We fully expect to see a deluge of applications over the next couple of weeks. But with our network of experienced lenders, we’re focused on giving New Jersey small business owners the lifeline they need to stabilize their companies and protect their most valued assets; their employees.”

The CARES Act allocates $350 billion in paycheck protection loans available to small businesses (including sole proprietorships, independent contractors and the self-employed), private non-profit organizations or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.

If a small business keeps all employees on its payroll for eight weeks and the PPP money is used for payroll, rent, mortgage interest, or utilities, the loan will be forgiven.  Additionally, individual businesses are also eligible to tap into a $10 billion pool of forgivable Economic Injury Disaster Loan Advances.

To help small business owners locate eligible lenders who can participate in this program, the SBA developed an online portal https://www.sba.gov/paycheckprotection/find that is searchable and mapped by zip code. SBA New Jersey 7(a) lenders are also eligible to participate and a link to them can be found here. In addition, the SBA has made available the questions PPP-participating lenders will need to ask in their application process in a downloadable form available at the SBA website online so small businesses owners can begin preparing the required information from participating lenders.

New Jersey small business owners can apply through any existing SBA 7(a) lender or through any federally insured depository, federally insured credit union, and Farm Credit System institution that is participating until June 30, 2020. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program.

“We’re looking to make the application process as seamless as possible,” said Bulger. “We realize how many small businesses across all industries have been devastated by the effects of the Coronavirus and we want to be sure that all small businesses in the Garden State have the opportunity to apply.”

Bulger noted that in addition to the Paycheck Protection Program, there are also four other programs that small businesses can utilize. Those programs include: SBA Debt Relief; SBA Express Bridge Loans; and Economic Injury Disaster Loan Emergency Advance.

“We certainly have more tools in the toolbox than we had two weeks ago,” he added.  “The road to economic recovery has just begun, and SBA plans on being here for the long haul and doing our part to see that those small businesses get back on their feet.”

All questions about your eligibility or lender participation can best be answered by your local lender. For more information about the Paycheck Protection Program, visit https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp.

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