Small businesses impacted by the coronavirus crisis may be eligible for assistance under The Paycheck Protection Program [PPP], part of the Coronavirus Aid, Relief, and Economic Security Act just passed by Congress. The PPP is a low interest, emergency loan program, with potential for loan forgiveness, designed to enable employers to retain employees and cover overhead costs.
This Alert provides a brief summary of the PPP for our small business clients. Additional details can be found on the US Chamber of Commerce’s website. If we can help, please don’t hesitate to reach out.
Who is Eligible for the Paycheck Protection Program?
- Small businesses or non-profits with fewer than 500 employees
- Sole proprietors, Independent Contractors, Self-employed individuals
- Tribal businesses
- Small 501(c)(19) Veterans organizations
What are the terms of a loan?
- Maximum interest rate: 4%
- Maximum loan amount: up to $10 million
- Term: 10 years, no prepayment penalty
- No fees, collateral or guarantees
- SBA approval not required before loan is made
- Repayment deferred for 6 months to 1 year
- Full and partial forgiveness of loan is possible
- Salaries, commissions, and benefits
- Covered rent, and interest payments on mortgages and utilities
- Find an SBA Approved Lender using SBA’s Lender Match and apply
- Certify that the current economic conditions make the loan necessary for ongoing operations
- Certify that there is not a similar application pending and that the business did not receive a similar loan this year.