The PPP authorized 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. Loans 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 annually per employee. Due to the likely high utilization rate, 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.
Where can I apply?
Applications are available through any existing SBA lender or federally insured depository institution, federally insured credit union, and participating Farm Credit System institution. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. Consult with your local lender as to whether it is participating. See a list of SBA lenders.
What do I need to apply?
You will need to complete the Paycheck Protection Program loan application and submit the application with the required documentation to an approved lender by June 30, 2020. Click HERE for the application.
What can I use these loans for?
· Payroll costs, including benefits;
· Interest on mortgage obligations, incurred before February 15, 2020;
· Rent, under lease agreements in force before February 15, 2020; and
· Utilities, for which service began before February 15, 2020.
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