LIHU‘E — The County of Kaua‘i in a video Friday said the U.S. Small Business Administration launched a new round of funding for the Paycheck Protection Program on Friday, Jan. 15, and the county encourages small-business owners to apply at local, participating lenders.
“SBA recently re-launched the Paycheck Protection Program, which provides forgivable loans to small businesses,” Mayor Derek Kawakami said in an email. “We recognize that businesses are struggling everywhere, and we are doing all that we can to support our economy while prioritizing the health and safety of our community.
“It’s a difficult balance, and that’s why we are grateful for opportunities like this which can help businesses who experienced a loss of revenue due to the pandemic,” Mayor Derek Kawakami said. He said a PPP loan can help a business with payroll expenses and employee retention.
The county said this program provides forgivable loans to businesses that experienced a loss of revenue of at least 25%. Small businesses with 300 or fewer employees are eligible to apply. The PPP loans can be used to cover payroll and other eligible expenses.
“We encourage our local businesses to research this option and discuss the details with a participating local lender,” Kawakami said.
Local lenders on Kaua‘i participating in the program include Kaua‘i Government Employees Federal Credit Union, Gather Federal Credit Union, Hawaii USA Federal Credit Union, Bank of Hawai‘i, Central Pacific Bank and First Hawaiian Bank.
“The SBA has allowed community development financial institutions to start accepting applications,” KGEFCU COO Sean Kaley said. “Our CDFI status allows us to begin the application process for First Draw PPP loans now. We will be accepting Second Draw PPP loans through our online portal when it is available at www.kgefcu.org/ppp.”
According to Kaley, CDFIs are mission-driven financial institutions that are dedicated to proving financial services to meet the needs of economically-disadvantaged individuals within underserved communities. The deadline to apply is March 31.
The U.S. Department of the Treasury said at least $25 billion is being set aside for Second Draw PPP Loans to eligible borrowers with a maximum of 10 employees, or for loans of $250,000 or less to eligible borrowers in low- or moderate-income neighborhoods. However, for borrowers in the accommodations and food services sectors, the maximum loan amount for a Second Draw of the PPP Loan is 3.5 times the average monthly 2019 or 2020 payroll costs, up to $2 million.
“The new round of funding will help Hawai‘i small businesses meet their payroll and provide people with paychecks,” U.S. Sen. Brian Schatz said in a press release.
“I encourage all Hawai‘i small businesses to visit our online resource guide, talk with their lenders, and learn more about how to get help.” Schatz said the First Draw of PPP Loans are for those borrowers who have not yet received a PPP loan. The first round of the PPP loans, which ran from March to August 2020, provided 25,000 loans totaling $2.5 billion to Hawai‘i small businesses, helping retain more than 225,000 jobs in the state. To learn more about PPP eligibility and program details, visit the SBA website, sba.gov/ppp.
