COVID-19 Update: Protecting Your Paycheck

Small businesses are the heartbeat of the American economy, and they are suffering right now at no fault of their own. As a small business owner for over 50 years, I know all too well the tough decisions that our small business owners are being forced to make during this trying time. Employees who have been loyal and stayed the course are now being met with uncertainty for their future, left to determine whether there will be a job to return to when the crisis subsides.

There are, however, steps we can take to help Main Street survive and recover: below are loan options available for small business owners affected by the COVID-19 pandemic. For more information, please visit my website here.

Economic Injury Disaster Loans

Texas small businesses and nonprofits may be eligible for the Economic Injury Disaster Loan (EIDL) Program administered by the Small Business Administration. This program provides low interest, long term loans to qualifying entities that have been negatively impacted by the corona virus. To view a downloadable one-pager, please click here.

• EIDL Loans are available to small businesses and non-profits that meet the Small Business Administration's (SBA) size thresholds to cover economic losses resulting from a disaster. For more information on size standards, please click here.
• Apply directly through the SBA's website here.
• Maximum loan amount of $2 million with a 3.75% interest rate and terms up to 30 years.
• This loan advance does not have to be repaid if loan is not approved but it was an eligible business that applied to the program.

Paycheck Protection Loan Program

Businesses affected by COVID-19 can apply for 100% federally backed small businesses loans from their local financial institutions. If a business maintains payroll for an 8-week period throughout the pandemic, they are eligible to have a portion of their loan forgiven. To view a downloadable one-pager, please click here.

• Apply through your local bank or credit union that is an SBA-certified lender.
• Allows businesses to receive loans that are intended to be forgivable if the borrower maintains employees on payroll through the pandemic.
• The amount of the loan is set by a formula determined by the average monthly payroll up to $10 million with a fixed interest rate of 1% with terms of 2 years.
• Funds will be used to make payroll, mortgage payments, lease payments and utility payments.
• Loan forgiveness will be given to business that maintain the same payroll numbers over the covered period of the loan and will be reduced proportionally by any reduction in the number of employees retained as compared to the prior year.

The program was made available yesterday to small business owners nationwide. I am working directly with the Treasury Department and the SBA to resolve technical issues that may arise for both businesses and lenders. My team and I remain committed to assisting our Main Street businesses to ensure they can maximize every loan opportunity during this health crisis.

Express Loans

• Express loans are available to small businesses that meet the SBA size thresholds, which is generally fewer than 500 employees.
• Apply through your local banks or credit unions who are SBA-certified lenders.
• Express loans provide up to $1 million dollars for businesses to access quickly.
• Can be used to cover accounts payable, purchasing inventory or other operational expenses.
• Loans have terms up to 7 years and have interest rates between 4.5% to 6.5%.

I will continue fighting for Main Street America and will remain a steadfast champion for small businesses as we work together to make it to the other side. For more information on resources available, please visit my website here, or follow me on Instagram, Facebook or Twitter.

In God we trust,

Roger Williams

Member of Congress