Paycheck Protection Funds Available to Businesses
Last updated 4/8/2020 at 11:56am
The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Fully Forgiven Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months.
No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Must Keep Employees on the 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.
All Small Businesses Eligible
Small businesses with 500 or fewer employees-including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors- are eligible. Businesses with more than 500 employees are eligible in certain industries.
When to Apply
Starting April 3 small businesses and sole proprietorships can apply. Starting April 10 independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap.
The following information has just been released from the Treasury regarding the Paycheck Protection Program: Download these forms, review, and connect with a qualifying lender mentioned in the program.
• Paycheck Protection Program Application https://files.constantcontact.com/76ae87e9701/d2e1f10e-c63a-4521-bc0c-346feb82d3a4.pdf
• Paycheck Protection Program Information Sheet for Borrowers