TIA ISSUES STATEMENT ON SBA 7(A) FORGIVABLE LOANS UNDER THE PAYCHECK PROTECTION PROGRAM
Businesses Are Encouraged to Apply Beginning April 3, 2020
April 1, 2020 – ALEXANDRIA, VIRGINIA – Transportation Intermediaries Associations (TIA), the largest association representing third-party logistics companies, released today the following statement from President & CEO Robert A. Voltmann, CAE, regarding guidance released by the Small Business Administration (SBA).
The SBA announced today that lenders may begin processing SBA 7(a) forgivable loan applications under the Paycheck Protection Program on Friday, April 3, 2020.
These loans are first come, first serve, so please do not hesitate to apply for the loan.
On behalf of TIA and our 1,800 member companies, I encourage all of you who meet the 500 employees or less employee threshold – per the “CARES Act” economic relief legislation – to inquire with your local bank or financial institution about applying for this great stimulus loan program.
TIA fought for the Paycheck Protection Program with your businesses and employees in mind. We believe that no American family and no American business should fail because of a virus beyond our control.
Please take note of the following specifics related to this program:
• A small business is eligible to borrow 250% of their average payroll expenses (up to $10 million) in capital to be used for meeting payroll, rent, mortgage interest or utility payment obligations.
• It is crucial you maintain your payroll for eight (8) weeks, as this is the determining factor for loan forgiveness.
• Loan payments will be deferred for six (6) months.
• No collateral will be required for these loans and no fees will be charged by the government or lenders.
Our members, the third-party logistics companies that facilitate freight from the manufacturer (shipper) to the motor carriers and other modes, are essential during this COVID-19 crisis. Many of them are struggling financially through this crisis and have been directly impacted by the recent economic and health downturn.
I once again urge you to reach out to your local banks and inquire about the SBA 7(a) forgivable loans under the Paycheck Protection Program; this is an opportunity to not only secure funds for your business but for your employees who have also been struggling during this trying time.