A quick rundown for the SBA Paycheck Protection Program (PPP).
PPP provides small businesses (<500 employees), sole proprietors, independent contractors, and the self-employed funds to pay upto 8 weeks of payroll costs including benefits.
The funds can also be used to pay interest on mortgages, rent, and utilities.
Fully Forgiven – say what?
The funds will be forgiven as long as the borrower can prove they were used for the intended purposes. Loan payments will be deferred for 6 months. No collateral or personal guarantees required. And no fees.
Borrower MUST keep employees on payroll – or rehire quickly
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
When to Apply
- Starting April 3, 2020, small businesses and sole proprietorships can apply.
- Starting April 10, 2020, independent contractors and self-employed individuals can apply.
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. If you are unsure, be sure to check for a list of approved lenders at www.sba.gov.
More info can be found below: