The federal government released guidance to their SBA lender banks on Tuesday, March 31 about the Paycheck Protection Program. Applications for loans under the Paycheck Protection Program (PPP) are now available. The application can be found here. The completed application and the required documentation should be submitted to an approved lender as soon as possible and prior to June 30, 2020.
Companies and Sole Proprietors Can Start Apply on Friday, April 3rd.
- This is done through a lender.
- Application is 1 page long – should take you 3 minutes to apply.
- Will need proof of your payroll, healthcare benefits payments, retirement/pension benefit payments.
Independent Contracts & Self-Employed Can Start Applying on Friday, April 10th.
The Small Business Administration also provided additional information regarding PPP loans:
- Any loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities; however, the SBA indicated that due to the high demand for these loans, it is anticipated that at least 75% of the forgiven amount must have been used for payroll costs.
- All payments are deferred for a period of six months; however, interest will continue to accrue over this period.
- Any portion of the loan not forgiven will have a maturity date of two years and an interest rate of 0.5% (The CARES Act provided for a maturity of not more than 10 years and an interest rate of not more than 4%).
- No collateral or personal guarantees are required.
- Neither the government nor lenders will charge small businesses any prepayment penalties or fees.
Paycheck Protection Program: https://lnkd.in/eGevcSk
$10K Grant App: https://lnkd.in/ehAikeJ
This information has been curated from multiple reliable sources.