RCAC announced on July 9 that the Paycheck Protection Program (PPP) deadline has been extended to August 8. Since March, RCAC’s staff has processed more than 85 PPP loans for small businesses that have been impacted by COVID-19.
“We’ve heard from businesses whose banks have turned them down or told them they don’t qualify,” RCAC said in a press release. “Some have not heard back from their banks at all. RCAC wants you to know that help is available.”
The nonprofit organization, which provides training, technical and financial resources and advocacy to rural communities, said its PPP loans have helped many businesses keep their doors open during this crisis. One example is when 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,” the organization stated. “We’ve provided relief to a small Native family owned business in New Mexico and many others.”
The organization is 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, according to RCAC, and PPP loans can normally be processed to funding within a few days. There is no minimum loan amount. 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.
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.
For information about the new guidelines or to start the application process, contact:
Michele Weaver at email@example.com or (385) 226-2844
Mike Carnes at firstname.lastname@example.org or (559) 731-8233
Complete details are available here: https://www.rcac.org/wp-content/uploads/2020/07/PPP-Flyer-070920.pdf