Mnuchin could apply for more small business loans
U.S. Treasury Secretary Steven Mnuchin speaks during the daily briefing on the novel coronavirus, COVID-19, at the White House March 25, 2020, in Washington, DC.
Mandel Ngan | AFP | Getty Images
The small business measures aim to help businesses cover salaries and other expenses during the punitive epidemic. Businesses with fewer than 500 employees can use the money to cover salaries, wages, and benefits, with a loan of up to $ 10 million or 250% of monthly payroll.
The loans will be available from lenders approved by the Small Business Administration. Payments will be deferred for six months and businesses will be able to request a rebate on at least part of what they borrow.
Businesses can get loans canceled if they use the funds to pay, rent, mortgage, or utilities, but the amount forgiven is reduced if companies cut jobs or cut wages.
Lenders will start processing loan applications on Friday, according to the SBA.
Many lawmakers have already called for more legislation to mitigate the damage from the pandemic as widespread layoffs hit workers and the healthcare system in parts of the country crumbles under pressure from COVID-19. Unemployment benefit claims have already reached a record 3.3 million. Friday’s government jobs report for March will show an even bigger picture of how the outbreak has hurt workers.
Businesses in large parts of the country are expected to remain closed until at least April.
The United States has more than 189,000 cases of COVID-19 and at least 4,081 deaths have been linked to the disease, according to data compiled by Johns Hopkins University.