SBA Accepting Paycheck Protection Program (PPP) Loan Applications Starting Today
Under the CARES Act, the federal government expanded a loan program to businesses to cover employee payroll, mortgage interest, rent, and utilities expenses. A prominent feature is that all or part of the loan is potentially forgivable, provided funds are used for specific purposes. Sufficient documentation to substantiate the application is required.
Who can apply?
To quote the U.S. Treasury, “All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries.” (emphasis added)
What if I have questions?
You can also attend our upcoming PPP Loan webinar, as our team discusses the detailed ins and outs of the application and documentation. Click here to pre-register for the webinar.
When can I apply?
April 3 (TODAY): Small businesses and sole proprietorships
April 10: Independent contractors and self-employed individuals
IMPORTANT: While the official date for lenders to start accepting applications is today, not all lenders have their entire process in place or fully finalized. Employers will need to consult their individual lenders on their application process specifics.
What do I need to know?
While loan amounts and the businesses they support may vary, the Treasury has stated that all loan terms will be the same for all borrowers, featuring (as of the writing of this communication) 1.00% fixed rate 2-year term with no collateral required and no pre-payment penalties, among others.
What do I need to do?
The loan program is set to close on June 30, 2020. As there is currently a funding cap, all interested businesses are strongly encouraged to apply as soon as possible. We urge you to contact your Seiler advisors as soon as possible if you have questions about the application process, calculations and documentation, or any other aspects of this program.
The Seiler team will be hosting a webinar as soon as possible on the PPP Loan program. Click below to pre-register for the webinar.