FAQs for Those Seeking Small Business Loans Under New Stimulus Law

The Coronavirus Aid, Relief and Economic Security (CARES) Act expands the Small Business Administration’s (SBA) 7(a) loan program to include nearly $350 billion for a small business program called the Payroll Protection Program.

The Payroll Protection Program is not provided through SBA directly, so the first step to qualifying for a loan through the Payroll Protection Program is to find an SBA-approved lender in your community. If your bank is not an SBA lender, you can contact the SBA at 1-877-475-2435 to find one; or visit the SBA website section on the 7(a) loan program. If you have trouble getting through to the national SBA office, this link will take you to your district office.

NAHB has put together FAQs on how to apply for a small business loan under the Payroll Protection Program. Click here for answers to the following questions:

  • Who is eligible?
  • How soon will the Payroll Protection Program be disbursing loans?
  • What are allowable uses for the Payroll Protection Program loans?
  • Can Payroll Protection Program loans be turned essentially into grants?
  • What’s the interest rate on Payroll Protection Program loans?
  • What size business loan do you qualify for?
  • How do I apply for a Payroll Protection Program loan?