The Paycheck Protection Program (PPP) deadline has been extended to August 8. Since March, RCAC’s staff has worked hard to process more than 85 PPP loans for small businesses that have been impacted by COVID-19, and with this extension, we have the opportunity to do more. We’ve heard from businesses whose banks have turned them down or told them they don’t qualify. Some have not heard back from their banks at all. RCAC wants you to know that help is available.

Our PPP loans have helped many businesses keep their doors open during this crisis. An RCAC staff member had breakfast at a local restaurant whose owner told her he had been turned down by the bank, within days he received an RCAC loan, and then shared the news with a neighbor. A nonprofit organization that provides services to help women and children who were victims of domestic violence is able to keep its doors open after 40 years. We’ve provided relief to a small Native family owned business in New Mexico and many others.

We are still accepting and processing PPP loans, and will apply the new PPP guidelines and extensions to both new and existing PPP borrowers.

• The application process is fairly simple and PPP loans can normally be processed to funding within a few days.
• There is no minimum loan amount. We have processed PPP loans from $750 to more than $1.2 million.
• For profit businesses (including sole proprietors with no employees), nonprofit organizations (501(c)(3) and (c)(19) and Tribes and Tribal entities are eligible. Public bodies are not eligible.
• Businesses must be located in or serve rural areas.

Important details

Payroll costs are capped at $100,000 annually for each employee. Not more than 40 percent of the forgiven amount may be used for non-payroll costs. Loan payments will be deferred for up to 16 months.

Loans made after June 5, 2020 are due in five years. Loans made before June 5, 2020 are due in two years but can be extended to five years.

Contact

For information about the new guidelines or to start the application process, contact:

Michele Weaver at mweaver@rcac.org  or (385) 226-2844

Mike Carnes at mcarnes@rcac.org or (559) 731-8233

Complete details are available here:  https://www.rcac.org/wp-content/uploads/2020/07/PPP-Flyer-070920.pdf

If you know of an existing small business that needs financial assistance, please forward this email. Remember, the deadline to submit applications is Aug. 8, 2020.