Paycheck Protection Loans Start April 3rd and April 10th
April 01, 2020
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
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.
Small businesses (500 or less employees)
501 (c)3 Organizations
Starting April 3rd - Small Businesses and Sole Proprietors can start to apply.
Starting April 10th - Independent Contractors and self-Employed can apply.
Apply as quickly as possible because there is a cap.
Eligible for loan forgiveness equal to the amount the borrower spent on the following items during te 8-week period beginning the date of the origination of the loan.
Payroll Costs - 75% of the funds must be used on payroll.
Interest on th mortgage obligation incurred in the ordinary course of business.
Rent on a lease agreement.
Utilities - electric, gas water, transportation, telephone, internet.
Loan payments will also be deferred for six months.
How to apply?
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating.All loans will have the same terms regardless of lender or borrower. Please contact your local financial institution that you already have a working relationship and see if they are participating.
Watch for scams. f you receive calls, emails, or other communications claiming to be from the Treasury Department and offering COVID-19 related grants or stimulus payments in exchange for personal financial information, or an advance fee, or charge of any kind, including the purchase of gift cards, please do not respond. These are scams. Please contact the FBI at www.ic3.gov so that the scammers can be tracked and stopped