Paycheck Protection Program
· Who is eligible: small businesses less than 500 employees, sole proprietor, independent contractor, self-employed, 501(c)(3) under 500 employees, certain veterans and tribal organizations.
· Guide for applying: linked here and here in Spanish is a helpful guide that outlines what you need to know, who is eligible and how to apply.
· Application: The application can be found here and will be submitted directly to your lender starting April 3rd for small businesses and sole proprietors and April 10th for independent contractors and self-employed individuals.
· Lenders: If you already have a lender that you went through for a previous small business loan (i.e. if you took out a 7(a) loan) they will also likely lend through the Paycheck Protection Program. If not, here is a link of lenders in Arizona, this list may grow and change as the Department of Treasury Issues additional guidance.
· Loan Terms: Loans under the Paycheck Protection Act can be 2.5 times the borrower’s average monthly payroll costs, and they cannot exceed $10 million. The interest rate for Paycheck Protection loans are set at .5%, and loans mature after two years. No personal guarantee or collateral is required. The lenders are expected to defer fees, principal and interest for no less than six months and no more than one year.
· Loan Forgiveness (i.e. Grants): You can get SOME or ALL of these loans forgiven, basically turning them into a grant instead of a loan that you have to pay back. You are going to want to talk to your lender about the information that you will need to keep to get the loan forgiven. Generally, if you continue paying the expenses you took out the loan for at normal levels for the 8 weeks following the origination of the loan including payroll cost (excluding costs for any compensation about $100k annually), mortgage interest, rent payments and utility payments you should be able to get the combined cost of these expenses forgiven.
It is important to talk to your lender, as you will be penalized (i.e. required to pay the loan back) if you reduce your payroll. For example, if you furlough, terminate or reduce salaries your loan forgiveness will be reduced proportionally. Linked here is a fact sheet from Dept. of Treasury with some FAQs.
Please see attached for Guidance from SBA on the Paycheck Protection Program
https://www.chamberorganizer.com/buckeyevalley/docs/PPP-IFRN_FINAL.pdf
· Who is eligible: small businesses less than 500 employees, sole proprietor, independent contractor, self-employed, 501(c)(3) under 500 employees, certain veterans and tribal organizations.
· Guide for applying: linked here and here in Spanish is a helpful guide that outlines what you need to know, who is eligible and how to apply.
· Application: The application can be found here and will be submitted directly to your lender starting April 3rd for small businesses and sole proprietors and April 10th for independent contractors and self-employed individuals.
· Lenders: If you already have a lender that you went through for a previous small business loan (i.e. if you took out a 7(a) loan) they will also likely lend through the Paycheck Protection Program. If not, here is a link of lenders in Arizona, this list may grow and change as the Department of Treasury Issues additional guidance.
· Loan Terms: Loans under the Paycheck Protection Act can be 2.5 times the borrower’s average monthly payroll costs, and they cannot exceed $10 million. The interest rate for Paycheck Protection loans are set at .5%, and loans mature after two years. No personal guarantee or collateral is required. The lenders are expected to defer fees, principal and interest for no less than six months and no more than one year.
· Loan Forgiveness (i.e. Grants): You can get SOME or ALL of these loans forgiven, basically turning them into a grant instead of a loan that you have to pay back. You are going to want to talk to your lender about the information that you will need to keep to get the loan forgiven. Generally, if you continue paying the expenses you took out the loan for at normal levels for the 8 weeks following the origination of the loan including payroll cost (excluding costs for any compensation about $100k annually), mortgage interest, rent payments and utility payments you should be able to get the combined cost of these expenses forgiven.
It is important to talk to your lender, as you will be penalized (i.e. required to pay the loan back) if you reduce your payroll. For example, if you furlough, terminate or reduce salaries your loan forgiveness will be reduced proportionally. Linked here is a fact sheet from Dept. of Treasury with some FAQs.
Please see attached for Guidance from SBA on the Paycheck Protection Program
https://www.chamberorganizer.com/buckeyevalley/docs/PPP-IFRN_FINAL.pdf
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