The Paycheck Protection Program is part of the CARES Act approved by Congress. The Program gives small businesses access to short-term cash flow assistance to help cover operating expenses and payroll costs to keep employees. These loans will come directly from Pacific Western Bank and will be guaranteed by the Small Business Administration (SBA), so you’ll still be working with the bank you know and trust.
Federal Coronavirus Relief Loans
What is the Paycheck Protection Program?
Who is eligible?
Small businesses, including sole proprietors, independent contractors, self-employed individuals, nonprofit organizations, tribal business concerns, and Veterans’ organizations, that:
- Typically employ less than 500 employees
- Were in business on or before February 15, 2020
- Had employees to which they paid salaries and for which they paid payroll taxes or that paid independent contractor
Contact your Pacific Western Bank Relationship Manager if you would like to discuss the Paycheck Protection Program.
What can the loan be used for?
The proceeds of the loan can be used for the following expenses:
- Payroll costs that may include wages, salaries, retirement contributions, healthcare benefits, insurance premiums, covered leave, and other expenses
- Operating expenses, such as payroll, rent, lease payments, utilities, and mortgage interest obligations
- Interest on other debt obligations incurred before February 15, 2020
Is the loan a grant from the government? I have heard that I don’t need to pay it back
Proceeds of the loan used for approved payroll and other operating expenses will be forgiven by the government
SBA Disaster Loan Program
If you are a small business owner, SBA is also able to independently provide disaster relief loans under its own authority, as provided by the Coronavirus Preparedness and Response Supplement Appropriations Act. These funds come directly from the U.S. Treasury and there is no cost to apply.