The U.S. Small Business Administration (SBA) is offering a new program that may be of interest to small quantum companies that are under economic pressure due to the coronavirus situation. The Coronavirus Aid, Relief, and Economic Security (CARES) Act has allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses with an very low interest rate of 1%. Companies will not be required to provide a personal guarantee or collateral in order to receive the loan. Perhaps of most interest, these loans may be forgiven for those companies that maintain their payrolls during the crisis or restore them afterwards. The loan is available to companies with 500 employees or less and can cover employee payroll costs, mortgages, rent, and utilities. The loan amount is 2.5 times the average total monthly payroll costs incurred by a company during the year prior to the loan date up to a maximum of $10 million. The SBA will be issuing additional guidance and information about eligible lenders very soon, but in the meantime you can read a summary from the U.S. Chamber of Commerce here, an FAQ about the program here and a document from the SBA here.
March 29, 2020