Last week the United States Government passed what is known as the CARES Act to provide economic relief to businesses (including sole proprietorships!) impacted by COVID-19. There are a few different avenues and programs to receive help under the CARES Act, one of which is the Paycheck Protection Program (PPP). The Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed. Visit SBA.gov/Coronavirus for more information on the Paycheck Protection Program and the other available avenues and programs for assistance.
The new PPP loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.
Loan Terms & Conditions
- Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries.
- Eligible Purposes: payroll, rent, mortgage interest or utilities.
- Maximum loan amount up to $10 million
- Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses eligible purposes in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
- All loans under this program will have the following identical features:
- Interest rate of 0.5%
- Maturity of 2 years
- First payment deferred for six months
- 100% guarantee by SBA
- No collateral
- No personal guarantees
- No borrower or lender fees payable to SBA
Murray | Lobb has contacts with multiple lending institutions who are already approved SBA lending processors and can help you navigate the process. Give us a call at 281-488-0630 or email email@example.com and we will be happy to provide you with these contacts.