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    The Corona Virus Aid, Relief, and Economic Security (CARES) Act recently passed by Congress see more

    COVID-19 Emergency Loans available for Marine Industry Small Businesses


    The Corona Virus Aid, Relief, and Economic Security (CARES) Act recently passed by Congress allocates $350 billion in 100% federally guaranteed loans to help small businesses keep workers employed amid the pandemic and economic downturn.

    These loans are being offered and administered now through the SBA and local banks. Loans can be up to 2.5X the borrower's monthly payroll costs, not to exceed $10 million, and are available to small businesses (less than 500 employees) and self-employed individuals during the ensuing 12 week period.

    • Interest rate on these loans is capped at .5%
    • Terms are 2 years with payments deferred for up to 6 months

    Loan Forgiveness . . . Borrowers are eligible for loan forgiveness, not to exceed the principle, equal to the amount spent on the following business expenses:

    • Payroll, up to a maximum annual salary proration of $100,000 per employee, including wages, tips, commissions, net self-employment income, group health care benefits and premiums, vacation pay, sick pay, family leave pay, retirement benefit payments, and state & local taxes
    • Interest on mortgage obligations incurred in the normal course of business
    • Rent on a business lease agreement
    • Utility payments, including electricity, gas, water, transportation, telephone and internet

    Loan forgiveness may be reduced if there is a reduction in the number of employees or a reduction in the wages paid to employees greater than 25%.

    Lender Evaluation . . . Loans will be processed through local lenders per SBA / CARES guidelines. Lenders will consider whether borrower was in operation before February 15, 2020 and had employees for whom they paid salaries and payroll taxes and/or paid independent contractors.

    Lenders will also ask for good faith certification that:

    • The uncertainty of current economic conditions makes the loan request necessary to support ongoing operations
    • The borrower will use the loan proceeds to retain workers and maintain payroll or make mortgage, lease, and utility payments
    • Borrower does not have any other duplicative loan applications pending
    • From February 15, 2020 to December 31, 2020, the borrower has not received a loan duplicative of the purposes and amounts applied for here

    If applicant is an independent contractor, sole proprietor, or self-employed   individual, lenders will also look for certain documents such as payroll tax filings, form 1099-Misc, and income / expense statements or tax returns.

    Lenders will NOT consider whether the borrower sought and was not approved for credit elsewhere.

    Personal guarantees and collateral are not required for these loans.

    For more information about the Corona Virus Emergency Loan Program contact your local lending institution and go online at and

    The COVID 19 situation and economic impact is constantly evolving, and we will continue to notify our members and the marine industry of future developments.

    The Marine Recreation Association is a professional organization that represents marina owners, operators, and industry professionals located throughout the western United States with additional members in Canada, Mexico, and Australia. Created more than 49 years ago, the MRA actively promotes and represents recreational boating interests while providing educational management and operations seminars, and information for marine industry owners, operators, and staff.


    For additional information about the MRA, and all of its activities and interests, contact Mariann Timms by phone at (209) 334-0661, email at or go online at

     April 02, 2020