03 Apr SBA Paycheck Protection Program
The Paycheck Protection Program (“PPP”), created through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.
The loan amounts will be forgiven as long as:
The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for 6 months.
Small businesses can now fill out an application to the Paycheck Protection Program for a forgivable loan to pay their employees during the COVID-19 crisis. Small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders beginning on April 3, 2020.
For an overview of the program CLICK HERE
If you’re a lender, more information can be found HERE
If you’re a borrower, more information can be found HERE
The application for borrowers can be found HERE