SBA Issues Final Application Form for New Small Business Loans

The U.S. Small Business Administration and the U.S. Treasury Department issued a new application form early today, April 3, and published a draft interim final rule for the new Paycheck Protection Program Loans (PPP). 

These loans, which provide small businesses -- including metalcasters employing fewer than 500 people -- with low-interest loans up to a maximum of $10 million, were supposed to roll out April 3 under the CARES Act. However, businesses have to wait a bit longer. Banks are indicating that they will not accept applications today, but are hoping to launch the loan program early next week. They are stating that they need more guidance from the SBA and more time to prepare for accepting applications.

Furthermore, there have also been revisions by the SBA to the original program. One of these revisions was the change in interest rate of the loans, which was set at up to 4% in the CARES Act, set at 0.5% by the Trump Administration Tuesday, and then raised to 1% on April 2. 

In the meantime, the Treasury has posted the final application, which metalcasters can use to help them prepare. This is a first-come, first-served process, so businesses will need to be ready when the banks start taking applications. Note that many banks, including Fifth-Third and Chase, will have their own forms. Check your bank's website to see what documents they may need. 

AFS is hosting a timely Members Only Webinar you won’t want to miss with the latest information on these loans at 3 p.m. CT/4 p.m. ET on Monday, April 6. Click here to register for "New Federal Loaning Options for Small & Medium Foundries."