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Paycheck Protection Program Provides Support to Small Businesses

Paycheck Protection Program Provides Support to Small Businesses

Posted on: April 13th, 2020 by Julie

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

ELIGABILITY

  • 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
  • Rent
  • Utilities

LOAN TERMS

  • 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.

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About the Author

Julie Sepulveda - Marketing Coordinator
Julie Sepulveda
Marketing Coordinator

I have a love for design, organization and family.

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