The Paycheck Protection Loan Program was put into place on March 27, 2020 to help small businesses ( < 500 employees) cover their payroll costs. Those who are eligible can receive a loan for up to 250% of their average monthly payroll expenses, up to a total of $10 million. The loans are for a 2-year duration with a fixed interest rate of 0.50%.
All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply.
April 3, 2020: Small business and sole proprietors can apply and receive loans.
April 10, 2020: Independent contractors and self-employed individuals can apply.
June 30, 2020: End of application loan period
You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. www.sba.gov for a list of SBA lenders.
The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; If employee and compensation levels are maintained part of the loan will be forgiven. Apply as quickly as you can because there is a funding cap and lenders need time to process your loan.