Paycheck Protection Program Provides Support to Small Businesses
Keep Your Employees on Payroll and Help Cover Operating Costs During COVID-19
The CARES Act Paycheck Protection Program (PPP) is providing a loan option for small businesses through the Small Business Administration (SBA).
HOW TO APPLY
- Businesses with less than 500 employees
- Were in business on or before February 15, 2020
- Had employees to whom they paid salaries and for whom they paid payroll taxes or that paid independent contractors
- Check the website of your preferred lender for additional eligibility requirements
LOAN PAYMENT TO COVER
- Payroll costs
- Interest on mortgages
- SBA will forgive loans if borrowers are in compliance
- Payment on funds exceeding the forgiven limit may be deferred for 6 months
- Employee and compensation levels are maintained for 8 weeks after loan has been made
- No collateral or personal guarantee is required
- No fees to the borrower
- 2-year loan term
- No prepayment penalty
Check with your local regulators and legal counsel for additional guidance.
For other COVID-19 financial support options, read the CARES Act Support Amid COVID-19 Pandemic blog post.