PAYCHECK PROTECTION PROGRAM (PPP)

WHO'S

ELIGIBLE

Small businesses and non-profit organizations in the U.S. and its territories with less than 500 employees are eligible to apply for a PPP relating to the COVID-19 pandemic that were in operation as of February 15, 2020

LOAN

AMOUNT

TERM

INTEREST

RATE

COLLATERAL;

personal guarantee

Up to $10 million (up to 2.5X average monthly payroll)

2 years

1 - 4% 

No collateral required; no personal guarantee required

Allowable Use of Loan Proceeds

The proceeds may be used for (a) Payroll Costs, (b) rent, (c) utilities, (d) interest (but not principal) on any mortgage obligation, (e) interest on any other debt obligations that were incurred before February 15, 2020, and (f) any other permitted use of a SBA 7(a) loan, including working capital, plant acquisition, construction, conversion, or expansion, including the acquisition of land, material, supplies and equipment

application

processing timeframe

Applications are currently not available 

forgiveness

Loan proceeds spent on the following items during the 8-week period following the origination date of the loan may be forgiven:  

  • Payroll, interest on mortgage, rent on a lease agreement, utilities  

Forgiven amount can be reduced if 

  • Reduction in number of employees, or 

  • Reduction of more than 25% in wages paid to employees 

Amounts forgiven not subject to income tax 

PROGRAM

DEADLINE

PPP ends on June 30, 2020

Supporting Documents needed

  • Complete copy of the most recent Federal Income Tax Return

  • Schedule of Liabilities

  • Personal Financial Statement for each principal

  • A current year-to-date profit-and-loss Statement

  • A statement providing monthly sales figures

Where to apply if you don't have a current relationship with a bank

READY TO APPLY? 

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