For Small Businesses, Sole Proprietors, Independent Contractors,
and Self-employed Individuals.
The Paycheck Protection Program (“PPP”) 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.
* ELIGIBLE FOR NON-PROFITS, SMALL BUSINESSES AND SOLE
PROPRIETORSHIPS; INDEPENDENT CONTRACTORS AND SELF-EMPLOYED
INDIVIDUALS.
Regarding the Paycheck Protection Program, applications will begin to be
accepted at 12:01 A.M. APRIL 3, 2020. The application can be found HERE.
These loans will be granted on a first-come first served basis, please work
with your bank immediately.
Each bank has its own requirements regarding the information that must
be submitted. A list of items your bank may require is HERE, but
you will need to confirm what needs to be included with YOUR INDIVIDUAL
BANK. It will vary.
Note: Applications and the supporting materials must be submitted
electronically. You can apply through any existing SBA lender or through
any federally insured depository institution, federally insured credit
union, and Farm Credit System institution that is participating.
A Paycheck Protection Program template is available HERE. This is
an illustration of how you might get the numbers that are required for
your application. The U.S. Treasury has put together a Borrower
Information Sheet, found HERE, which answers some frequently asked
questions.