Small businesses across Nebraska and the nation are rushing to take advantage of a financial stimulus package intended to help companies keep people on payrolls and soften the economic blow from COVID-19 for small businesses.
The Paycheck Protection Program provides funds to pay up to 8 weeks of payroll costs including benefits, with up to 25% of the money available for use to pay interest on mortgages, rent, and utilities.
Mike Downey, President of First State Bank, tells KNEB News it may take a little bit of time for businesses to get approved, as the program is proving to be extremely popular, with his institution handling more than 100 applications by mid-day Friday. “When you put 4,000 banks trying to do it at the same time, it an get a little difficult,” said Downey.
Platte Valley Companies President and CEO Hod Kosman tells us his staff was also extremely busy with applications. “I think we will surpass $20 million in applications company-wide (during the first day),” said Kosman. “Thats in three states, and my guess is we will double that in the (following) week.”
Funds are provided as loans that can be forgiven if the employer maintains or quickly rehires employees at their previous salary levels. The forgiveness would be reduced if full-time headcounts, salaries or wages decrease.
To apply, contact your local banking representative.
