SBA Releases Details on Paycheck Protection Program
The Small Business Administration (SBA) has released details on the $349 billion Paycheck Protection Program (PPP) that was included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was enacted last week.
SBA 7(a) lenders may begin processing loans as soon as April 3. However, small businesses impacted by COVID-19 should submit a PPP application to their bank as soon as possible to minimize delays in obtaining funding due to the high volume of applications lenders are expected to receive.
Important SBA Links
- Program Overview
- Who Can Apply
- How to Apply
- Loan Details and Forgiveness
- Find SBA PPP lenders
- Sign up for a free PPP webinar by the SBA Albany Small Business Development Center (April 1-3)
- Loan processing start date: April 3, 2020
- Deadline: June 30, 2020
- Eligibility: For small businesses (<500 employees), independent contractors, sole proprietors. the self-employed, and nonprofits
- Amount: SBA 7(a) loans up to $10 million
- Forgivability: The loan amount that went toward payroll, rent, mortgage and utility obligations during the eight-week period after origination may be forgivable, so long as 75 percent of the loan went to payroll. Please note that loan forgiveness is tied to employee and salary retention.
- Fees: None
- Deferment period: Six months
- Exclusivity: Small businesses cannot apply for both PPP loans and COVID19-related Economic Injury Disaster Loans (EIDLs)
- Interest: Fixed rate .5% up to 4%
Should you have any questions or need resources to help your company in these uncertain times, CEG’s professional staff is here to help. Please contact us here.