Image courtesy of iowasbdc.org

A federally funded program has been extended to help small businesses in need during the COVID-19 pandemic to August 8th.

Small Business Development Center Regional Director for North Central Iowa Kimberly Tiefenthaler says the Paycheck Protection Program (PPP) allows small businesses to receive funding to ensure payroll expenses for employees, along with interest payments on mortgages, rent and utilities. She has been hearing positive feedback from businesses that have received funding.

“They’ve been able to do creative things with their staff during the time period of when they were shut down, like painting your business, taking the opportunity to do some really deep cleaning and maybe light remodeling or things like that. Which I think is a great use of time and the funds.”

Tiefenthaler notes for the loans to be forgiven, at least 60-percent must be used on employee payroll. The interest rate is one-percent and the maturity rate is now five years after June 5th and two years before. Loan payments are deferred for six months and Tiefenthaler adds at this time funding is still available for first-time applicants, who can apply through a federally insured bank.