Our RDF Small Business Department is now accepting applications for the Small Business Administration (SBA) Paycheck Protection Program (PPP) to incentivize small business owners to maintain their current employees on payroll, as well as provide support to persist the side effects of the Coronavirus pandemic.
- Raza Development Fund is a Community Development Financial Institution certified by the US Treasury.As a CDFI, we pledge to serve low-income communities including small businesses and minority- and women-owned businesses..
- Our priority will be focused on small businesses and non-profit organizations located in low-Income communities and underserved areas so we can fulfill our mission of creating/preserving jobs in economically distressed communities.
RDF is the largest Latino Community Development Financial Institution (CDFI), with more than $400 million in total assets under management RDF has provided capital to Latino-serving organizations nationwide. RDF recently, received an AA(-) credit rating from S&P Global Ratings.
If your business or non profit organization has been affected by the COVID-19 pandemic, the new SBA PPP (Small Business Administration Paycheck Protection Program) loan could give you access to 2.5X your average monthly payroll in relief funds.
Eligible for forgiveness
- Loans forgiven for eligible payroll, utilities, rent, and mortgage interest. Any amount not forgiven will have a 1% interest rate.
Based on payroll
- Loans up to $10 million, with the max amount based on average monthly payroll x2.5.
- Payments on any amount not forgiven will be deferred for six months after loan is issued.
Eligibility For A PPP Loan?
- The PPP is for small businesses that have less than 500 employees*, private non-profit organizations, or 501(c)(19) veteran organizations that have been affected by the Coronavirus pandemic.
*If they meet the SBA’s size standards, there are businesses in particular industries that may have more than 500 employees.
- Hospitality and food industry businesses with multiple locations may have eligibility at the store location level so long as there are fewer than 500 employees at each store location.
What Are The Terms Of A Paycheck Protection Program Loan?
Details on Loan:
- Loans will have a maturity of five years and an interest rate of 1%.
- Loans will be partially or fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities.
- At least 60% of the forgiven amount must have been used for payroll.
- Loan payments will be deferred for six months.
- No collateral or personal guarantees are required.
- Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.
- Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.