Paycheck Protection Program

The U.S. Treasury Department recently sent out this press release with additional guidance for small businesses applying for forgivable loans through the Paycheck Protection Program.

The new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.


Loan Terms & Conditions

•  Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries

•  Maximum loan amount up to $10 million

•  Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)

•  All loans under this program will have the following identical features:

•  Interest rate of 0.5%

•  Maturity of 2 years

•  First payment deferred for six months

•  100% guarantee by SBA

•  No collateral

•  No personal guarantees

•  No borrower or lender fees payable to SBA

 

Visit treasury.gov/cares for more information on SBA’s assistance to small businesses.

 

Application

The application for borrowers can be found here.