Paycheck protection
The SBA Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. The program provides cash-flow assistance through 100% federally guaranteed loans to employers who maintain their payroll during COVID-19 pandemic. If employers maintain their payroll, the loans would be forgiven, which would help workers remain employed, as well as help affected small businesses and the economy snap-back quicker after the crisis.
PPP has a host of attractive features including a 5 year term, 1% interest, no fees, six months of deferral (interest will continue to accrue), and the ability to be forgiven if borrow use the funds for payroll and approved expenses.
Initially, MBECP partnered with Earvin “Magic” Johnson, majority owner of EquiTrust, to distribute $100 million of PPP loans geared specifically for minority and women-owned businesses in underserved communities. MBECP then became an SBA-approved PPP lender and went on to provide 13,000 borrowers with over $350,000,000 in PPP loans.
We are no longer accepting new applications. The SBA has signaled a new PPP loan program and MBECP will be ready to help diverse businesses with their financial needs.