Faith-based organizations eligible for loans
The Maui News
Faith-based organizations impacted by the coronavirus are eligible to participate in a federal relief program designed to help small businesses and nonprofits stay afloat during the pandemic.
The U.S. Small Business Administration clarified that all faith-based organizations, regardless of their religious identity or activities, can apply for the Paycheck Protection Program and the Economic Injury Disaster Loan program, provided they meet the criteria outlined in the CARES Act.
“Faith-based organizations have always provided critical social services for people in need, and SBA will make clear that these organizations may access this emergency capital,” SBA Administrator Jovita Carranza said Saturday.
The Paycheck Protection Program is designed to keep small business workers employed and provide them with capital through the nation’s banks and other lending institutions, with support from the SBA. The maximum loan amount is $10 million with a fixed 1 percent interest rate and maturity of two years. SBA will forgive the portion of loan proceeds used for payroll costs and other designated operating expenses for up to eight weeks, provided at least 75 percent of loan proceeds are used for payroll costs.
The Economic Injury Disaster Loan program provides qualifying small businesses and nonprofits with working capital up to $2 million, with low interest rates and terms extending up to 30 years.
For more information, visit www.sba.gov/funding-programs/loans/coronavirus-relief-options.