The most recent guidance from the U.S. Treasury Department released yesterday provides that PPP loans will have a 2-year term, bear interest at the annual rate of 1%, and will be subject to forgiveness in an amount up to the total amount of the loan.
All payments of principal and interest will be deferred for 6-months. The total amount that can be borrowed is 2.5 X average monthly payroll up to a maximum of $10 million.
The loan is available for small businesses, nonprofits, sole proprietors and independent contractors with up to 500 employees (with certain exceptions including for those in the hospitality industry). The loan proceeds must be used for retaining workers, maintaining payroll or making mortgage, lease and utility payments.
You may apply for the loans through any existing SBA lender or federally insured bank. Our understanding is that banks may start receiving applications as early as April 3rd.
Access the Paycheck Protection Program info sheet which includes the link to download the application.
Please contact us directly to learn more about the key terms, availability and how the PPP applies to your business, as well as other emergency loan programs that may be available.