Here are the short strokes for accessing the help you need! There is enough going on for everyone right now in the world, and we could all use a little break. That break is coming and it’s coming fast. With the Paycheck Protection Program (PPP) applications beginning on April 3rd small to medium businesses around the United States can almost feel the relief coming. Here is the bulk of the relief you can expect for your business.
All loan terms will be the same for everyone!
The loan amounts will be forgiven as long as:
- 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; and Employee and compensation levels are maintained.
- Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to the likely high subscriptions, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Last but not least, the loan payments will be deferred for 6 months.
Who can apply and when?
For small businesses and sole proprietorships, starting April 3, 2020 applications are being accepted to receive loans to cover payroll and other certain expenses through existing SBA lenders.
For independent contractors and self-employed individuals, starting April 10, 2020 applications are being accepted to receive loans to cover their payroll and other certain expenses through existing SBA lenders.
Click here for the application
Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.
The following was sourced from Treasury.gov
What can I use these loans for?
You should use the proceeds from these loans on your: Payroll costs, including benefits; Interest on mortgage obligations, incurred before February 15, 2020; Rent, under lease agreements in force before February 15, 2020; and Utilities, for which service began before February 15, 2020.
What counts as payroll costs?
Payroll costs include: Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee); Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit; State and local taxes assessed on compensation; and For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
To learn more details about the PPP program click here to visit the Treasury.gov information page.
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