Here is the ultimate guide to the Paycheck Protection Program to help you as a small business or independent contractor during the COVID-19 global pandemic.
Ultimate Guide to the Paycheck Protection Program
The Paycheck Protection Program is a $349 billion dollar fund that helps small businesses and independent contractors retain jobs and certain other expenses. This fund was created as part of the CARES Act and the response to the COVID-19 national emergency.
Under this program:
- Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
- Loan payments will be deferred for 6 months.
- If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination.
Paycheck Protection Program: Who can apply?
The program is for any small business with less than 500 employees (including sole proprietorships, independent contractors, and self-employed persons), and private non-profit organizations.
Paycheck Protection Program: How to Apply?
You can apply through any existing SBA 7(a) lender or through any federal insured depository institution, federal insured credit union, and Farm Credit System institution that is participating. You should consult with your local lender as to whether it is participating in the program.
Lenders may begin processing loan applications as soon as April 3, 2020.
Paycheck Protection Program: Loan Details and Forgiveness.
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, utilities. Loan payments will also be deferred for 6 months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. This loan has a maturity of 2 years and an interest rate of .5%.
Paycheck Protection Program: Application Information
You can take a look at the form here. Alternatively, if you would like assistance with the application process, please check out our SBA loan concierge assistance here. Spots are limited and we're helping people on a first-come, first-served basis.
*Click above to learn more. We've already helped hundreds apply for SBA loans.
How much will I get from the COVID-19 Stimulus?
Have you filed taxes in 2018 or 2019 in the US, or are you Social Security? If so, you're eligible for the stimulus. Visit our Stimulus Payment Calculator to find out how much you'll get, when, and how.