Amata Advises Independent And Private Schools Of Options Under Historic CARES Act

Statement

Thursday, Congresswoman Aumua Amata is letting independent or private nonprofit schools, or church or faith-based schools in American Samoa know that Congress included them in the assistance options. These assistance options are part of a joint program, the $349 billion Paycheck Protection Program, between the U.S. Treasury and directly administered by the Small Business Administration (SBA). This assistance follows the same principles as the similar help offered to churches and small businesses, based on similar categories of payrolls. Please note: A primary qualification is to maintain or restore the paychecks of employees while applying to the government for the necessary assistance.

"It's important to know that this program is meant to keep paychecks going to families during this hard time," said Aumua Amata. "The program will help, in fact the SBA website was expanded and updated Friday, but this plan is for schools, nonprofits and small businesses that keep paying their people! This program has two goals, to help your employees weather the economic storm and to help your organization survive without crushing debt."

Under the CARES Act, Section 1102, schools can apply for eight weeks in a forgivable loan covering basic obligations, especially payroll, but also mortgage interest, rent and utilities. The loan can be for more than eight weeks as needed up to a year's expenses, with low 1 percent interest, including a six month delay in requiring payments on principal or interest.

The SBA will do away with most of the usual collateral requirements, personal guarantees, and SBA fees to make this assistance widely available.

Some may qualify for Economic Injury Disaster Loan, Section 1110, which hastens a smaller amount of up to $10,000 to the applicant and may not require payment.

"We appreciate our faith-based schools so much," said Amata. "This program absolutely applies to you so that when this is over you can get right back to work serving, leading and ministering to our young people."

Who can apply?

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), and private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.

Apply if harmed by COVID-19 shutdowns or losses between February 15, 2020, and June 30, 2020. This program is retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls. Loans are available through June 30, 2020. To have the full 8-weeks of allowable costs forgiven, apply before May 5, 2020!

Please contact your lender to begin the application.

Start here at the SBA link. https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp.

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