Paycheck Protection Program Highlights
- The funding is intended to help retain workers, maintain payroll, and cover rent, mortgage, and utility expenses.
- There is no cost to apply.
- The loan covers expenses dating back to February 15 to June 30, 2020.
- Loan can be forgiven and essentially turn into a non-taxable grant.
- No personal guarantee or collateral shall be required.
PPP Loan Forgiveness
The loan will be fully forgiven if the funds are 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. This loan has a maturity of two years and an interest rate of one percent.
On May 15, the Small Business Administration released an 11-page application outline providing guidance on key points necessary for PPP Loan Forgiveness.
For a step-by-step review of the guidelines for loan forgiveness, and how to accurately forecast payroll and FTE in alignment with program rules, watch our PPP Loan Forgiveness Webinar.
The SBA Loan Forgiveness Application is now available.
Where can I apply for the Paycheck Protection Program?
You can apply for the Paycheck Protection Program (PPP) at any lending institution that is approved to participate in the program through the existing U.S. Small Business Administration (SBA) 7(a) lending program and additional lenders approved by the Department of Treasury.
You do not have to visit any government institution to apply for the program. You can call your bank or find SBA-approved lenders in your area through SBA’s online Lender Match tool. You can call your local Small Business Development Center or Women’s Business Center and they will provide free assistance and guide you to lenders. This could be the bank you already use, or a nearby bank. There are thousands of banks that already participate in the SBA’s lending programs, including numerous community banks.