Mayor Harry Kim is urging all eligible small businesses in Hawaii County to apply for financial assistance from the federal government.
Congress passed new legislation that includes $310 billion to replenish the Small Business Administration’s Paycheck Protection Program (PPP), first established under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The program provides small employers with forgivable loans to maintain their existing workforce and help pay for other expenses such as rent, mortgage and utilities.
“I urge all small business owners in Hawaii County to contact a lender certified by the Small Business Administration for complete information and to apply for a PPP loan,” Kim said. “Please take advantage of these programs to save your business and provide for your employees.”
Small businesses, sole proprietorships, independent contractors, self-employed people and private nonprofits are eligible.
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent and utilities. At least 75% of the forgiven amount must have been used for payroll.
Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
For more information, call your bank or visit SBA.gov. To find other resources for your business, visit www.hawaiicounty.gov/covidbusinesshelp/.