The Paycheck Protection Program has prioritized millions of Americans employed by small businesses by first authorizing up to $349 billion and another $310 more toward job retention and certain other expenses. The program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent and utilities.
Banks are serving as a conduit for the program; they are fronting the money to businesses on behalf of the government, which will reimburse the banks. Banks are not making money on this program – they’re doing this because it’s the right thing to do. Find a lender.
Fully Forgiven
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Must Keep Employees on the Payroll—or Rehire Quickly
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
All Small Businesses Eligible
Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
If you’re a borrower, more information can be found here.
For questions or additional information, please complete the form below.