Cenla businesses begin applying for small business loans
Some financial relief is finally coming in for small businesses around the country and here in Cenla. The government stimulus bill, known as the CARES Act, is providing financial relief for small businesses that have been scaled back or closed down because of the COVID-19 outbreak.
A small business is defined as one with less than 500 employees. The Paycheck Protection Program gives businesses the loan money they need to maintain payroll, hire back employees who have been laid off, and to cover overhead like rent while the businesses are closed due to stay at home orders. The loan money will not have to be paid back later. One Cenla business owner we spoke with says he's been pleasantly surprised at just how smooth the process is.
"You fill out the information. It takes maybe 15 minutes and the rest of the time is maybe gathering up your tax returns, which you should have. Then you got to get your 940 and your 941. You make copies of those. You upload them into the system. I mean it took us 15 minutes to apply for the loan and we did that on Sunday and on Tuesday we had approval, so it went really fast. So now it's up just to our local bank to finish up the paperwork," says co-owner John Miguez.
Impact Advertising says they think their positive experience with the loan process has been made easier by the fact that they bank with a local, Cenla bank. They say the bank walked them through the entire process. Impact recently laid off four of their eleven employees, but hope to be able to hire them back once the loan money comes through.