Applications for loans under the Paycheck Protection Program (PPP) are now available. The application can be found here. The completed application and the required documentation should be submitted to an approved lender as soon as possible and prior to June 30, 2020.
The Small Business Administration also provided additional information regarding PPP loans:
- Any loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities; however, the SBA indicated that due to the high demand for these loans, it is anticipated that at least 75% of the forgiven amount must have been used for payroll costs.
- All payments are deferred for a period of six months; however, interest will continue to accrue over this period.
- Any portion of the loan not forgiven will have a maturity date of two years and an interest rate of 0.5% (The CARES Act provided for a maturity of not more than 10 years and an interest rate of not more than 4%).
- No collateral or personal guarantees are required.
- Neither the government nor lenders will charge small businesses any prepayment penalties or fees.
When can you apply?
- Starting April 3, 2020, small businesses and sole proprietorships can apply for PPP loans through SBA lenders.
- Starting April 10, 2020, independent contractors and self-employed individuals can apply for PPP loans through SBA lenders.
- Other regulated lenders will be available to make the PPP loans as soon as they are approved and enrolled in the program.
O’Neil, Cannon, Hollman, DeJong and Laing remains open and ready to help you. For questions or further information relating to the Paycheck Protection Program, please speak to your regular OCHDL contact, or the author of this article, attorney Jason Scoby.
