Paycheck Protection Program Helps Lincoln College Recall and Retain Staff
LINCOLN, IL— Today, Lincoln College announced that they have secured a loan through the Paycheck Protection Program that will allow them to recall 32 furloughed employees, as well as allow 16 employees who had been reduced to three-day work weeks to return to five-day work weeks. In addition, all part-time and student workers will continue to get paid, even if they are unable to work due to the Illinois State Stay Home order.
“This is exactly what we envisioned when we enacted the Paycheck Protection Program in the CARES Act,” said Congressman Darin LaHood. “This loan will enable the college to keep people working, earning paychecks and supporting local businesses during the Coronavirus pandemic. This isn’t just a benefit to the employees of Lincoln College. It will help support businesses and workers throughout the Lincoln community and Logan County, and I will continue to do what I can to support them as we navigate this challenging time.”
“I am very pleased that Lincoln College was so quickly approved for this critical loan, which will help us save the jobs of workers impacted by furloughs and reduced hours as a result of the economic disruption that has accompanied this deadly virus,” Lincoln College President David Gerlach said. “I want to thank our Congressman Darin LaHood for his assistance and support of the federal legislation that created this and other critical relief programs.
“In addition, I want to thank Steve Aughenbaugh, President and CEO of the State Bank of Lincoln and Dave Irwin, Vice President and Farm Manager for their assistance in helping us successfully apply for this loan. It’s quite an accomplishment that they were able to help us qualify less than a week after the program was launched,” added Gerlach.
The Paycheck Protection Program is a $349 billion emergency loan program created with the President’s signing of the CARES Act. The program provides forgivable loans up to $10 million to small businesses left financially distressed by the Coronavirus (COVID-19) pandemic. The loans are administered at the local level by a national network of banks and credit unions and are designed to maintain the viability of millions of small businesses struggling to meet payroll and day-to-day operating expenses. Small businesses interested in the program should contact their local lenders.
The loans, which are 100% backed by the Small Business Administration (SBA), are being provided to small businesses without collateral requirements, personal guarantees, SBA fees, or credit elsewhere tests.
The loans cover up to eight weeks of average monthly payroll (based on 2019 figures) plus 25% and payments are deferred for six months (interest does accrue). The SBA will forgive the portion of loan proceeds used for payroll costs and other designated operating expenses for up to eight weeks, provided at least 75% of loan proceeds are used for payroll costs.
If businesses, non-profits, or constituents have questions about the loan program or need assistance, they are encouraged to reach out to Congressman LaHood’s Peoria District Office at (309) 671-7027.