The SBA Paycheck Protection Program provides small businesses with a loan to be applied toward payroll costs, interest on mortgages, rent, and utilities.

Loan payments are deferred for 6 months.

No collateral or personal guarantees.

Loan maturity of 2 years and an interest rate of 1.0%

You qualify if you are:

• A small business with fewer than 500 employees.
• A small business that otherwise meets the SBA’s size standard.
• A 501(c)(3) with fewer than 500 employees.
• An individual who operates as a sole proprietor.
• An individual who operates as an independent contractor.
• A Tribal business concern that meets the SBA size standard.
• A 501(c)(19) Veterans Organization that meets the SBA size standard.

In addition, some special rules may make you eligible:

• If you are in the accommodation and food services sector (NAICS 72), the 500-employee rule is applied on a per physical location basis.
• If you are operating as a franchise or receive financial assistance from an approved Small Business Investment Company, the normal affiliation rules do not apply.

Source: U.S. Chamber of Commerce.
Information accurate as of 3.31.2020

Businesses can apply for loan amounts up to $10 Million. The amount should be calculated at 2.5 times the amount of your average monthly payroll expenses. Eligible payroll expenses include:

• salaries
• hourly wages
• cash tips
• employee group health care benefits
• insurance premiums and retirement contributions.

You can receive assistance through both the EIDL Program and the PPP Loan program for financial hardships caused by the coronavirus pandemic, but you must use the funds for different purposes. For example, if you are using PPP funds to cover utilities and rental expenses, funding received through EIDL must be used for other expenses, such as payroll or other business expenses.

We can help your business navigate through the SBA injury disaster loans available that could help you with working capital to help you get through prolonged but temporary losses in revenue. The SBA also has a debt relief program where the SBA will pay the principal and interest for a period of six months of new 7(a) loans issued prior to September 27, 2020.

Loans made through the Paycheck Protection Program may also be forgiven. If all employees are kept on payroll for eight weeks, the SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities. Up to 100 percent of the loan can be forgiven. Talk to one of our experienced SBA lenders today to learn more.

No. This will not be considered as taxable income by the IRS.