This update is for business owners with payroll expenses and overhead costs.
As part of the Coronavirus (COVID-19) tax relief for businesses, the “Paycheck Protection Program” (PPP) has been issued by the federal government. This is a loan through the SBA (Small Business Administration) that is fully forgivable. How? You must use at least 75% of the loan for payroll and the rest for specific overhead. And you must maintain employees and payroll levels by keeping them or quickly rehiring!
The PPP loan covers up to eight weeks of payroll and overhead costs (mortgage interest, rent, utilities). Loan payments are deferred for six months and no collateral, no personal guaranty, and no fees! Remember the loan is not forgivable if you don’t follow the rules.
Read this PPP Info Sheet-US Treasury NOW ! This explains all the details and has links you need !
The application process opens tomorrow April 3, 2020 (and April 10, 2020 for independent contractors & self-employed persons).
Ask your bank (or other SBA Lender or check out www.sba.gov ) if they are processing these loans and the documentation they require.
Start the application now here: Paycheck Protection Program Application
This law authorized $349 billion for this program, but we expect it to run out fast !
Remember, this is different than the SBA Disaster Loan program which is applied for separately here: https://disasterloan.sba.gov/ela/