Lenders to Begin Processing CARES Act Paycheck Protection Program Loans Tonight at 12:01 a.m. Friday, April 3
April 2, 2020
The following information is very important if your company needs to seek assistance through one of the government programs designed to help businesses during the COVID-19 Crisis.
The CARES Act passed by Congress March 27 created the Paycheck Protection Program
, which provides low-interest, forgivable SBA loans to businesses with less than 500 employees hurt by the COVID-19 public health crisis. The application process will be open starting tonight at 12:01 a.m.
Fixed business costs such as rent, utilities, payroll and more can be paid with these loans offered at 0.5%, and the loans are forgivable as long as loan recipients continue to operate without laying off employees for eight weeks (February 15 - April 26) and meet other requirements (e.g, 75% of the forgiven amount must have been used for payroll).
Learn More via U.S. Treasury Department's PPP Information Sheet for Borrowers »
Other PPP resources and information from the U.S. Treasury Department »
Next Steps: How to Apply
You will need to complete the Paycheck Protection Program loan application
and submit the application with the required documentation to an approved lender that is available to process your application by June 30, 2020. 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. Find a certified lender in your area via SBA’s local assistance finder
Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
As of now, the only known required documentation needed to file for a PPP loan is the application and proof of payroll amounts (Form 941 or Form 1099). However, your lender may require additional documentation to help calculate the use of the loan and estimate how much could be forgiven, if qualified.
Please note that small-business borrowers cannot get both an Economic Injury Disaster Loan (EIDL) and PPP loan at the same time. If a borrower has accepted a EIDL loan and subsequently qualifies for the PPP loan, the borrower can re-finance the EIDL loan into a PPP loan. Loans are limited to one per Taxpayer Identification Number.
For a comprehensive guide on most of the small business provisions and programs included in the CARES Act, download the Small Business Owner’s Guide to the CARES Act
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