Small businesses will receive free loans to pay their employees’ salaries

The implementation of the program will begin on April 3.

The Office of Small Business Affairs and the U.S. Treasury Department have begun implementing one of the provisions of President Trump’s Coronavirus Relief and Economic Security Act, actively mobilizing banks and other lending institutions to provide the necessary capital to small businesses. This was stated in a statement issued by the Ministry of Finance on Tuesday.

The law, signed by Trump, provides for the implementation of the program to protect the payment of wages in the amount of $349 billion. Thanks to this, the necessary assistance will be provided to millions of small entrepreneurs who will be able to support their business and employment of their employees.

“The law provides for loans to maintain small business jobs, ensuring that salaries and overheads are paid for eight weeks to keep workers employed,” Finance Minister Stephen Mnuchin said, adding that the ministry and the Small Business Authority must launch the program no later than April 3.

Once the program is in place, businesses can apply to banks and credit organizations involved in the program and apply for a loan. Applications will be approved on the day of application, and loans may be forgiven if employees receive their salaries.

“This unprecedented public-private partnership will help small businesses gain quick access to capital,” said Jovita Carranza, head of the Small Business Office. According to her, the main thing in this program is efficiency. Thanks to the program, more than 30 million small businesses across the country will be able to get the necessary assistance.

More information about the program can be found on the website of the Ministry of Finance at this link.