Auto upholstery, body and paint shops received between $1.25 billion and $2.06 billion in loans from the Payment Protection Program, according to data by the U.S. Small Business Administration (SBA).
The loans went to 19,681 shops that applied through June 30. SBA estimates that the loans protected more than 133,000 industry jobs.
The data does not include other types of auto shops, such as mechanics and glass repair – so the total amount of loans and jobs protected is likely higher.
The “Paycheck Protection Program,” which offers forgivable loans to small businesses, was created to counter the economic downturn caused by the coronavirus pandemic. It’s part of the “Coronavirus Aid, Relief and Economic Security Act,” or CARES Act.
Under the program, the interest rate for loans is only 0.5 – 1.0% on a two-year term backed by the SBA and Department of Treasury. Small businesses are allowed to borrow up to 250% of their monthly payroll, rent and other expenses — but the total loan amount cannot exceed $10 million.
The best part? The SBA will forgive the portion of the loan used for payroll, rent, mortgage interest and utilities for a period of eight weeks if a small business keeps all its employees and maintains their payroll levels.
The last day to apply was supposed to be June 30, but because the program still had about $130 billion available for lending, Congress voted to extend the deadline to August 8.
Apply today! Interested business owners are encouraged to apply as early as possible. For more information: Visit the SBA website.
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