Trump touts small business loans in relief package

President Donald Trump with the help of Treasury Secretary Steven Mnuchin touted the rollout of Small Business loans that are covered under the relief package.

The Paycheck Protection loans are to be used to retain or hire workers.

Starting Friday, the Small Business Administration is guaranteeing $349 billion in potentially forgivable loans.

A business with up to 500 employees, including owners who work solo and freelancers, can borrow up to $10 million to be repaid over two years at an annual rate of 0.5%. The money that's used to pay salaries can be forgiven, and a portion of money used for rent, mortgage interest and/or utilities can be at least partially forgiven. Payments are deferred for six months.

Businesses technically could get the full amount of the loan forgiven.

But if you cut jobs, say you had 10 employees, let them go, and hired back only five, the amount of loan forgiveness will be reduced, and you'll have to repay some.

But a caveat from the government: Because so many owners are expected to take advantage of the loans, it's anticipated that no more than 25% of the forgiven amount may be for things other than payroll, rent, mortgage interest and utilities.