DISCLAIMER: Our organization does NOT offer Payment Protection Program (PPP) loans. The information presented in this blog post is for informative purposes only.
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
- Apply with a participating lender that you have a business bank account relationship with
- 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.Tags: CARES Act, COVID-19, Financial Services Center, Payment Protection Program, PPP, SBA, Small Business Administration