What:
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%.
Who:
All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply.
When:
- 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
Where:
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.
Why:
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.
