**Covid-19 Relief for Small Businesses**
Published: April 3, 2020
URGENT INFORMATION FOR ROCK ENERGY COOPERATIVE MEMBERS
Rock Energy Cooperative is keenly aware of the business disruption and economic fallout of the coronavirus pandemic to employers and employees alike. Below are the key provisions of the Paycheck Protection Program, a loan program available to many of our business members through U.S. Small Business Administration lenders under the federal CARES Act.
The Paycheck Protection Program is open through June 30, 2020. However, due to the expected volume of applications and limited federal funds available, interested members need to act quickly to contact an SBA-approved lender to begin the application process. Click here to find a nearby lender eligible to issue a loan under the Paycheck Protection Program.
- Any business concern with fewer than 500 employees is eligible for a 100% SBA-guaranteed loan intended for the purposes of retaining employees and keeping businesses open.
- Loans under the Program can be used to cover employee compensation and benefits, as well as rent, utilities and interest on mortgage and other debt for the 3-1/2 month period between February 15 and June 30, 2020.
- The maximum amount of a loan under this Program is 2.5 times the borrower’s average total monthly payroll costs in the preceding year, with certain exclusions.
- Certain costs incurred by borrowers during the 8 weeks after loan origination are eligible for loan forgiveness, provided that at least 75% of those costs are payroll related.
- Favorable loan terms include a 0.5% interest rate, 6-month deferral of principal and interest payments, and waiver of loan fees.
IMPORTANT: Please DO NOT contact Rock Energy regarding these programs; the co-op is simply passing along this information in hopes it may be of benefit to our members.
Additional information can be found at the following links: