LAS VEGAS (KLAS) — As COVID-19 closures continue across Las Vegas, small businesses can apply for the federal “Paycheck Protection Program” beginning Friday, to keep employees on payrolls amid tough times.
The low interest loan is part of the $2.2 trillion COVID-19 Relief Bill Congress and President Donald Trump passed last week.
“Really at the end of the day,” Lexicon Bank Chief Credit Officer Leo Moschioni told 8 News Now. “Just keeping employees on the payroll.”
It allows certain companies with 500 employees or less to apply for eight weeks worth of cash flow to keep them afloat.
“This is a wonderful opportunity for you to be a responsible business owner,” Lexicon Bank CEO John Miller added, “And take care of your employees.”
Beginning Friday, April 3, eligible business owners can apply for an average of funds equal to 2.5 times of monthly payroll costs.
Lexicon executives advised supplying payroll records for all 12 months of 2019 and February 2020 upon application.
Depending on the application date, funds could be delivered to approved borrowers by the end of next week.
“The goal is really to provide through the small business,” Miller said. “A downward cycle to the employee themselves.”
Then, once a business owner is back on his feet, he can apply for financial forgiveness for said loan within six months of the initial borrowing date.
“You’re keeping your employees employed at your business” Miller said. “And that is the reason it’s being forgiven.”
However, experts said this option does vary based on review of the exact use of loan funds.
Lexicon executives concluded that it’s just one tool to help our community ride out these rough times and look forward to recovery.
“The people that make small businesses great all over Las Vegas are the people that show up,” Miller concluded.
The loan is federally funded, but some stipulations apply for certain industries in the state of Nevada.
Lexicon executives recommend business owners speak to their banks for information on eligibility.
The Paycheck Protection Program is available through June 30, 2020.
For more information, visit The U.S. Small Business Administration’s website.