U.S. Sen. Brian Schatz, a Hawaii Democrat, announced that starting Friday, small businesses and sole proprietorships can apply for loans to cover their payroll and other certain expenses through existing Small Business Administration lenders.
Independent contractors and those who are self-employed can begin applying April 10.
“This new loan program will help Hawaii small businesses meet their payroll and provide people with paychecks for up to eight weeks,” Schatz said. “It’s important that people apply as soon as they can to make sure they have the help they need to ride this out.”
The new SBA Paycheck Protection Loan Program, created through the Coronavirus Aid, Relief and Economic Security (CARES) Act, provides small businesses with zero-fee loans of up to $10 million to cover payroll and other operating expenses.
Up to eight weeks of payroll, mortgage interest, rent and utility costs can be forgiven. Payments on principal and interest are deferred for six months and up to one year. The interest rate on any part of the loan not forgiven was set at 0.5%.
For more information about eligibility and directions for how to apply, go online to bit.ly/3bIEN6O.