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Washington DC

Rep. Bishop Urges Small Businesses to Act Fast for Loans

April 3, 2020

WASHINGTON, DC—Congressman Dan Bishop (NC-09) urged small business owners to apply quickly for forgivable loans guaranteed by the U.S. Small Business Administration (SBA), through the Paycheck Protection Program.

"Other forms of coronavirus relief do not require action by the public, but to receive these loans, small business owners must actively seek them, even though they won't have to pay them back" said Rep. Bishop. "Congress appropriated $349 billion for this program, but small businesses affected by coronavirus should immediately contact their bank or an authorized SBA lender because demand for these vital, job-saving loans may exhaust the available funds very soon."

The Paycheck Protection Program was authorized in the CARES Act, which passed the House of Representatives with Rep. Bishop's support on March 27, 2020. The loans will be issued by banks and guaranteed by SBA using $349 billion appropriated in the bill.

The program allows businesses with 500 or fewer employees to borrow 2.5 times monthly payroll to keep employees paid over the ensuing eight weeks. Borrowers must spend 75 percent of the money on payroll and, to qualify for forgiveness, must maintain employee headcount and pay at least 75 percent of regular wage rates. Any unforgiven dollars will bear interest at 1 percent per annum.

For more information on the Paycheck Protection Program, visit /coronavirus/economic-relief-small-businesses or contact my office at www.danbishop.house.gov.