NASHVILLE, Tenn. (WKRN) — The process of getting what’s called ‘forgivable’ small business loans began Friday in Tennessee.
“I think a supermajority of these small businesses will apply for this money,” says Tennessee Department of Economic and Community Development Commissioner Bob Rolfe, whose agency is administering the program.
There are 160,000 small businesses in Tennessee that employ about two million Tennesseans, according to the department’s website.
Commissioner Rolfe hopes for some patience about the process which starts at a business owner’s local bank.
“The goal is to get this money out as soon as possible,” Commissioner Rolfe said Friday in a phone interview. “What I can’t tell you is how quickly the local bank should process the paperwork and get the money out.”
That money is called a Personal Paycheck Program or PPP. The federal Small Business Administration will forgive those loans to businesses that use at least 75 percent of the proceeds for payroll purposes.
Loan forgiveness is based on employers keeping or quickly rehiring employees and maintaining their salaries through June 30 of this year.
“The other 25 percent can be used to make mortgage payments, lease payments, utility payments, etc.” adds the commissioner.
The forgivable loans are up to $10 million dollars for each business.
More information about help for small businesses affected by COVID-19 is at the U.S. Treasury Department’s website.