Paycheck Protection Program Provides Support to Small Businesses
Paycheck Protection Program Provides Support to Small Businesses
April 13, 2020

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.

About the Author

Julie Sepulveda
Marketing Coordinator

I have a love for design, organization and family.

Posted in: Compliance News, Financial Services News
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