Paycheque Protection Deadline Approaches | Wadena Pioneer Journal
Small business administration loans can help cover salary costs, including employee benefits, mortgage interest, rent, utilities, worker protection costs related to COVID-19, costs of uninsured property damage caused by looting or vandalism in 2020 and certain costs and vendor expenses for operations , according to the SBA. The program reopened in mid-January with applications open until March 31. In order to reach smaller businesses, SBA proposed Paycheque Protection Program loans to companies with less than 20 employees and to sole proprietorships only until Tuesday 9 March.
“Continuing to pay our employees their normal wages in these uncertain times has been where PPP funds have served the most,” said Derek Kern, CEO / President of Kern Laser Systems, in an email.
The Economic Disaster Loan program also supports small businesses that experience loss of income. In Wadena, 51 companies have received PPP and EIDL funds, according to information analyzed by the SBA’s Pioneer Journal. Twenty-three percent of businesses have received PPP loans of $ 20,000 to $ 50,000. The restaurants received $ 410,900 in PPP loans and $ 493,700 in EIDL.
As a manufacturing company deemed essential, as well as customers who produce face shields, intubation boxes and splash guards, Kern Laser Systems saw a great need for its products. Although the pandemic has started with negative signs of trade show cancellations and canceled or delayed orders, as Kern said in an email.
“Unfortunately, we were unable to get in touch with our customers due to these cancellations and travel restrictions that most of our corporate customers have put in place,” he said.
PPP funds have also supported new online meeting systems for employees, customers and suppliers.
“At the end of the day, I’m happy to say that we were able to keep each of our employees full time during this difficult time,” said Kern.
How to register
PPP applications must be submitted by March 31. You can apply through an existing SBA lender, federally insured depository institution, federally insured credit union, or participating farm credit system institution. . Local lenders process requests:
Minnesota Central Cashier
First National Bank of Henning
Mid-Central National Bank
Star Bank, Bertha
Wadena State Bank
For a full list visit www.sba.gov.
For more information and to apply to EIDL, visit www.sba.gov/funding-programs/loans/coronavirus-relief-options/covid-19-economic-injury-disaster-loans.